Massage EnvyFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Massage Envy franchise requires a total initial investment of $719K – $1.1M, including a $45K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $1.1M[2]. SBA 7(a) loans show a 8.5% charge-off rate across 598 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $719K – $1.1M
- 74th pct Healthcare
- Avg gross sales
- $1.1M
- 32nd pct Healthcare
- Royalty
- 6.0%
- 14th pct Healthcare
- Units
- 1,009
- 76th pct Healthcare
- SBA default
- 8.5%
- system-wide median varies by category
Quick verdict · Healthcare · color = vs category peers
Green = >15% above Healthcare avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
11 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $719K – $1.1M including a $45K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $1.1M/year (median $1.1M).
- Verdict A (Top Quintile) with a risk score of 45/100. SBA loan charge-off rate of 8.5% across 598 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Bankruptcy history disclosed in the FDD. Review Item 4 for details before proceeding.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- ME SPE Franchising, LLC
- Parent company
- ME Holding Corporation
- Predecessor
- was the franchisor of Massage Envy Businesses prior to the closing of the Securitization
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 14350 North 87th Street, Suite 200, Scottsdale, Arizona 85260
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $97.6M
- vs $94.9M prior year
Affiliated brands
- of Roark Capital Group
- Massage EN V
- and our indirect parent company
- Massage Envy FLW
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Franchisees operate massage and skincare service centers offering therapeutic massages, facials, and body treatments to subscription and walk-in customers. Day-to-day operations involve scheduling and managing licensed massage therapists and estheticians, handling membership billings and renewals, customer service, facility maintenance, and managing the operational complexity of a service-based business with significant staff turnover and regulatory compliance requirements.
- CEO
- Todd Schrader
- Headquarters
- AZ
- FDD year
- 2025
- States available
- 50
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $45K | $45K |
| Working capital (3–6 mo) | $117K | $130K |
| Equipment, build-out, other | $557K | $906K |
| Total initial investment | $719K | $1.1M |
Source: Massage Envy 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$193K
17.0% margin
Unlevered ROIC
19%
EBITDA / total invested capital
Payback
5.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $719K – $1.1M
- Below avg, review vs category
- Liquid capital req'd
- $117K – $130K
- Below avg, review vs category
- Franchise fee
- $45K – $45K
- Better than avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $705 |
| Transfer fee | $30K |
| Renewal fee | $30K |
| Inventory (initial) | $31K – $79K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.1M
- Per unit, per year
- Median gross sales
- $1.1M
- Item 19 type
- gross_sales
- Sample size
- 187 units
- vs category median 12 · large
- Range (low → high)
- $191K→$2.7M
- Cohort dispersion (min → max)
- Quartile band
- $610K→$1.8M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 201 Healthcare brands
vs Healthcare averages
How Massage Envy Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 1,009
- Opened
- 1
- Last reporting year
- Closed
- 27
- Turnover rate
- 2.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -4.2%
- Net unit change last year
- 3-yr CAGR
- -6.8%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 27
- Terminated (3yr)
- 4
- Non-renewed (3yr)
- 5
- Transfers (3yr)
- 88
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 0.8%
- Franchisor-initiated terminations
- Ceased ops
- 2.5%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 598
- Loan volume
- $252.9M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- 8.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 91.5%
- 5-yr charge-off
- 8.3%
- Loans approved 2021+
- Active lenders
- 121
- Defaults
- 40
Vintage analysis
Massage Envy charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Massage Envy's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 22-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Massage Envy presents high risk due to shrinking franchise network, pervasive litigation over billing and misconduct, undisclosed profitability metrics, and substantial capital requirements in a declining system.
Litigation (Item 3)
4 case reference(s): 2 pending, 3 settled.
Largest disclosed settlement: $11
Bankruptcy (Item 4)
Disclosed in last 7 years
bankruptcies that must be disclosed with respect to our Regional Developers. Other than the bankruptcy cases disclosed in Exhibit G (if any), no additional bankruptcy information is required to be disclosed in this Item.
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 45 / 100 rating
- 01MINORDeclining unit count (-4.2% YoY) signals system contraction and potential market saturation
- 02HIGHExtensive litigation involving membership billing practices, territorial disputes, and alleged misconduct by service providers creates legal and reputational risk
- 03MEDNet income not disclosed despite $1.14M average revenue — suggests thin or inconsistent margins that may not support the $719K-$1.08M investment
- 04MEDHigh initial investment ($719K-$1.08M) combined with 6% royalty leaves limited margin for error in a labor-intensive service business
- 05MINORNumerous customer lawsuits alleging provider misconduct indicate potential compliance and liability exposure for franchisees
- 06MED10-year term locks franchisees into commitment during period of system decline
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Geographic territory |
| Protected territory | Yes |
| Territory population | 7,500 |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Non-compete (years)ℹ | 1.5 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 11 |
View Item 3 litigation summary
4 case reference(s): 2 pending, 3 settled.
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 80 hrs
- Training location
- On-site and corporate
- Site selection
- franchisor
- Franchisor financing
- Offered
- Item 10
- POS system
- Meevo
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Meevo
Item 20 · call current owners
Franchisee Contacts
96 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Massage Envy · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Massage Envy franchise?
The total investment to open a Massage Envy franchise ranges from $719K – $1.1M, with an initial franchise fee of $45K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Massage Envy franchise owners earn?
According to Item 19 of the Massage Envy FDD, the average gross sales per unit is $1.1M. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Massage Envy's franchise failure rate?
Based on SBA 7(a) loan data, Massage Envy has a charge-off rate of 8.5% across 598 loans, meaning 8.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Massage Envy franchise locations are there?
As of their most recent FDD filing, Massage Envy has 1,009 total units in the United States, including 1,009 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is Massage Envy a good franchise to buy?
FranchiseVerdict rates Massage Envy as a A-grade franchise with a risk score of 45 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.