Spa Revenue by Category
Start-Up Costs
- $33,333 each unit($100,000 up to 3) Empire Builder Agreement
- $45,000 single unit
- $100,000 Empire Builder of 3 Units
Overall initial investment per unit: $319,475 – $480,655
Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
---|---|---|---|---|
Initial Franchise Fee | $45,000 | Lump sum | When Franchise Agreement is signed | Us |
Spa Opening Package | $16,500 – $20,100 | Lump sum | At least 120 days before opening | Us, Third Parties |
Spa Operational Package | $35,000 – $60,000 | Lump sum | At least 120 days before opening | Third parties |
Grand Opening Advertising Promotion | $12,500 | Lump sum | When Franchise Agreement is signed | Us |
Lease Payments | $6,625 – $8,900 | As arranged | As agreed in lease or sublease | Landlord |
Utility and Lease Security Deposit | $5,750 – $8,600 | As arranged | Before opening | Landlord; Utility providers |
Leasehold Improvements | $156,500 – $215,455 | Lump sum | As required | Contractors and third party suppliers |
Employee Recruiting | $1,500 – $8,600 | As incurred | As incurred | Third Parties |
Training Travel Expenses | $500 – $3,500 | As incurred | As incurred | Third Parties |
Computer System | $6,800 – $10,000 | Lump sum | Before opening | Suppliers |
Government Permits and Licenses | $1,000 – $6,500 | As arranged | As arranged | Government agencies |
Insurance Deposits and Premiums (including statutory workers’ compensation) | $200 – $500 | As agent requires | Before opening | Insurance carriers |
Professional Fees | $2,000 – $5,000 | As required | Before opening | Your accountant, attorney, and other professionals |
Additional Funds (10 months) | $27,500 – $75,000 | As incurred | As incurred | Varies |
Grand Total |
$319,475 – $480,655 |
Please see 2016 FDD #7 for detail notes
Revenue Model
MASSAGE RETREAT & SPA™ Centers
Open at least 36 months as of December 31, 2015
(Plymouth, Edina, Shoreview, Savage)
Average Gross Revenues | |||
---|---|---|---|
Number of Centers | 2014 | 2015 | % Change |
4 | $1,142,168 | $1,197,044 | 4.80% |
MASSAGE RETREAT & SPA™ Centers
Open 24 to 36 months as of December 31, 2015
(Eden Prairie, Woodbury, Maple Grove franchise)
Average Gross Revenues | |||
---|---|---|---|
Number of Centers | 2014 | 2015 | % Change |
3 | $795,295 | $973,316 | 22.40% |
Average % of Gross Revenues | ||
---|---|---|
Centers open 36+ Mo. | Centers open 24 to 36 Mo. | |
Membership Dues | 66.0% | 59.6% |
Massage (non-member massage, upgrades) | 20.0% | 26.4% |
Skin | 5.8% | 6.4% |
Retail Products | 8.2% | 7.7% |
Total |
100.0% | 100.0% |
Labor (therapists, service desk, payroll taxes, training, bonuses, excluding gratuities) | 50.1% | 53.0% |
Please see 2016 FDD #19 for detail notes
Royalty Fee and Sample of On-going Expenses
Type of Fee | Amount | Due Date | Remarks |
---|---|---|---|
Royalty Fee | 5% of Gross Sales | Weekly | Payable by electronic funds transfer (“EFT”). Based on Gross Sales during the previous week. |
Local Advertising | $4,950 | Monthly | See Item 11 for more information regarding local advertising requirements. Payable by EFT. |
Operations Software License and Maintenance Fee | Currently, $799 | Monthly | See Item 11 for more information regarding our Operations Software. This fee begins after your first two months of use of the MRS software, although your first month of use may be a partial one. Payable by EFT. |
Please see 2016 FDD #6 for detail notes
Candidate Requirements
EMPIRE BUILDER
- Minimum $1M liquid capital
- Minimum $2.5M net worth
- 680+ credit score
OWNER/OPERATOR
- Minimum $250K liquid capital
- Minimum $750K net worth
- 680+ credit score