MassageLuXe Franchise Cost, Revenue & Review 2026
- Investment
- $571K – $799K
- Disclosed sales
- $881K
- gross sales, not profit
- SBA charge-off
- 3.3%
- on 76 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
MassageLuXe is a wellness franchise offering therapeutic massage and facials on a membership model. Franchisees run spas scheduling licensed therapists and estheticians and managing recurring memberships.
FranchiseVerdict summary · 2026
A MassageLuXe franchise requires a total initial investment of $571K – $799K, including a $43K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $881K[2]. SBA 7(a) loans show a 3.3% charge-off rate across 76 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $571K – $799K
- 51st pct Personal Care…
- Avg gross sales
- $881K
- 23rd pct Personal Care…
- Royalty
- 5.0%
- 4th pct Personal Care…
- Units
- 92
- 40th pct Personal Care…
- SBA charge-off
- 3.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $571K – $799K including a $43K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $881K/year (median $867K).
- RISKVerdict B (Above average), verdict score 55/100 (higher is better). SBA loan charge-off rate of 3.3% across 76 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +6 franchised outlets in the latest year (6 opened, 0 closed) (Item 20).
- GROWTHSystem growing at 22.7% CAGR over 3 years with 92 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Massage Luxe International, LLC
- Parent company
- MLI Holdings LLC
- FDD Item 1, page 8 of the 2025 FDD
- Ultimate parent
- Gold Five to Red Leader, LLC
- FDD Item 1, page 8 of the 2025 FDD
- Predecessor
- and Affiliates
- Prior franchisor entity
- CEO title
- President and Chief Executive Officer
- Kristen Pechacek
- Incorporated in
- MO
- HQ
- 16052 Swingley Ridge Road, Suite 120, Chesterfield, MO 63017
- Auditor
- Schmersahl Treloar & Co.
- Audited financials
- Franchisor revenue
- $8.2M
- vs $7.4M prior year
Independent franchisee associations
- Franchisee Advisory Board
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- of ours
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Kristen Pechacek
- Headquarters
- MO
- Founded
- 2007
- FDD year
- 2025
- States available
- 19
Can you afford it, and what does the money buy?
Entry cost runs 70% above the typical personal care & beauty franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown18 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $43K | $43K | |
| Leasehold Improvements | $368K | $431K | |
| Signs | $3K | $13K | |
| Spa Equipment and Supplies | $22K | $80K | |
| Fixtures | $11K | $38K | |
| Furniture and Decor | $5K | $19K | |
| Initial Pre-Opening Inventory | $14K | $14K | |
| Start-Up Marketing | $15K | $15K | |
| Insurance | $10K | $15K | |
| Pre-paid Rent and Lease Deposits | $16K | $26K | |
| Professional Fees | $12K | $21K | |
| Training Expenses | $3K | $5K | |
| Licenses/Bonds | $100 | $500 | |
| Computer Hardware and Software | $14K | $14K | |
| Security Systems | $2K | $2K | |
| Office Supplies and Other Miscellaneous Expenses | $5K | $5K | |
| Shipping | $4K | $8K | |
| Additional Funds - 3 months | $25K | $50K | |
| Total initial investment | $571K | $799K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $571K – $799K
- Middle of category vs category
- Liquid capital req'd
- $25K – $50K
- Top 40% of category vs category
- Franchise fee
- $43K – $43K
- Top 40% of category vs category
- Royalty
- 5.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.5% |
| Technology fee | $150 |
| Transfer fee | $21K |
| Renewal fee | $11K |
| Inventory (initial) | $14K – $14K |
| Total fee load | 8.5% of rev |
What do units actually make?
Average unit sales run 67% above the personal care & beauty norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for MassageLuXe until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$722K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one MassageLuXe unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $881K
- Per unit, per year
- Median gross sales
- $867K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 86 outlets
- vs category median 38 · large
- Range (low → high)
- $306K→$1.7MCited, not corroborated — printed on page 38 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $495K→$1.3M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 8 / 10
- vs category median 4 / 10 · above
Compared against 177 Personal Care & Beauty brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $881K/year in gross sales. Revenue-to-investment ratio: 1.3x.
Fee burden
Total ongoing fee load of 8.5% (near the Personal Care & Beauty median).
Disclosure
Transparency score 8/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 22.7% CAGR over 3 years across 92 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty medians
How MassageLuXe Compares
Category median of published Personal Care & Beauty brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 92
- Opened
- 6
- Last reporting year
- Closed
- 0
- Turnover rate
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +22.7%
- Net unit change over 3 years
- 3-yr CAGR
- +22.7%
- Compounded over last 3 years
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 19 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
19
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 76
- Loan volume
- $34.8M
- Median loan
- $433K
- 50th percentile
- Charge-off rate
- 3.3%
- on 76 loans · 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)
- 96.7%
- 5-yr charge-off
- 14.3%
- Loans approved 2021+
- Active lenders
- 29
- Defaults
- 1
- Typical loan rate
- 7.6%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 8121
- Jobs supported
- 1,809
- 6.0 per loan
- Lender concentration
- 12%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
MassageLuXe charge-off rate by loan vintage
Top lenders financing MassageLuXe franchisees
Showing 3 of 29 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
SBA loans charge off at 3.3% — 79% below the 16.0% national norm, i.e. lower lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
MassageLuXe presents moderate-to-elevated risk due to active litigation, sluggish unit growth, opaque financial disclosures, and a royalty structure that may strain unit economics in a maturing franchise system.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Three pending Item 3 cases, all involving Sapan Inamdar: (1) Sapan/Kendall Park ML franchise agreement litigation (franchisee plaintiff alleging breach, fraudulent inducement, NJ Franchise Practices Act); (2) MLI v. Inamdar/SPI area development litigation (franchisor plaintiff seeking declaratory judgment re ADA termination); (3) Inamdar/SPI v. MLI in New Jersey re ADA termination (NJFPA, misrepresentation claims).
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Schmersahl Treloar & Co.
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 55 / 100 verdict
- 01HIGHActive litigation with former developer involving breach of contract and franchise law violations creates legal precedent risk and potential franchisor liability exposure
- 02MINORModest unit growth of 7.0% YoY suggests market saturation or franchisee satisfaction concerns in a mature 92-unit system
- 03MINORThree pending legal actions could signal franchisor-franchisee relationship friction, territorial disputes, or aggressive termination practices
- 04MINORHigh initial investment ($570k-$799k) paired with modest 5-6% royalty structure and $243k average net income yields concerning ROI timeline (2.3-3.3 years to break even)
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 3 mi |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 25 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Arbitration location | St. Louis County, Missouri |
| Jury trial waiver | Yes |
| Governing law | MO |
| Litigation count | 3 |
View Item 3 litigation summary
Three pending Item 3 cases, all involving Sapan Inamdar: (1) Sapan/Kendall Park ML franchise agreement litigation (franchisee plaintiff alleging breach, fraudulent inducement, NJ Franchise Practices Act); (2) MLI v. Inamdar/SPI area development litigation (franchisor plaintiff seeking declaratory judgment re ADA termination); (3) Inamdar/SPI v. MLI in New Jersey re ADA termination (NJFPA, misrepresentation claims).
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 72 hrs
- Training location
- Chesterfield, MO or at another MassageLuXe Spa
- Ongoing training
- Required
- Time to open
- 12 mo
- From signing to launch
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- Built by Aliens
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Built by Aliens
Item 20 · call current owners
Franchisee Contacts
106 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a MassageLuXe franchise?
The total investment to open a MassageLuXe franchise ranges from $571K – $799K, with an initial franchise fee of $43K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do MassageLuXe franchise owners earn?
According to Item 19 of the MassageLuXe FDD, the average gross sales per unit is $881K. The median is $867K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns MassageLuXe?
MassageLuXe is franchised by Massage Luxe International, LLC. Its parent company is MLI Holdings LLC. The ultimate parent named in the FDD is Gold Five to Red Leader, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the MassageLuXe FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the MassageLuXe FDD and qualifies whose outlets they describe.
What is MassageLuXe's franchise failure rate?
Based on SBA 7(a) loan data, MassageLuXe has a charge-off rate of 3.3% across 76 loans, meaning 3.3% 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 MassageLuXe franchise locations are there?
As of their most recent FDD filing, MassageLuXe has 92 total units in the United States, including 92 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is MassageLuXe a good franchise to buy?
FranchiseVerdict rates MassageLuXe as a B-grade franchise with a verdict score of 55 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.
For franchisors
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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.