MassageLuXeFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $571K – $799K
- 70th pct Healthcare
- Avg gross sales
- $881K
- 24th pct Healthcare
- Royalty
- 5.0%
- 5th pct Healthcare
- Units
- 92
- 60th pct Healthcare
- SBA default
- 3.3%
- 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
Franchised units fell from 92 to 75 over 3 years. Investigate why operators are leaving.
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
36% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
Bottom line
- Total investment $571K – $799K including a $43K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $881K/year (median $867K), with an estimated 36% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 36/100. SBA loan charge-off rate of 3.3% across 76 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- MASSAGE LUXE INTERNATIONAL, LLC
- Parent company
- MLI Holdings LLC
- Ultimate parent
- Gold Five to Red Leader, LLC
- Predecessor
- and Affiliates
- Prior franchisor entity
- Incorporated in
- MO
- HQ
- 16052 Swingley Ridge Road, Suite 120, Chesterfield, MO 63017
- Auditor
- Schmersahl Treloar & Co.
- Audited financials
- Franchisor revenue
- $7.4M
- vs $8.2M prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
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
MassageLuXe franchisees operate spa/massage wellness centers offering therapeutic massage, bodywork, and related services. Day-to-day operations include scheduling client appointments, managing massage therapists and support staff, maintaining facility cleanliness and compliance, handling billing/POS systems, and marketing services to build a recurring client base.
- CEO
- Kristen Pechacek
- Headquarters
- MO
- Founded
- 2007
- FDD year
- 2025
- States available
- 19
FDD Item 7 · 2025 filing · 18 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.
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
$145K
16.5% margin
Unlevered ROIC
20%
EBITDA / total invested capital
Payback
5.0 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $571K – $799K
- Below avg, review vs category
- Liquid capital req'd
- $25K – $50K
- Better than avg vs category
- Franchise fee
- $33K – $43K
- Better than avg vs category
- Royalty
- 5.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.5%
- typical 3–5%
- Total fee load
- 8.5%
- vs 9–13% typical
- Payback period
- 2.8 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.5% of gross sales |
| Technology fee | $8K |
| Transfer fee | $21K |
| Renewal fee | $11K |
| Inventory (initial) | $14K – $14K |
| Total fee load | 8.5% of rev |
Financial Performance
- Avg gross sales
- $881K
- Per unit, per year
- Median gross sales
- $867K
- Avg p&l bottom line
- $243K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 35.5%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- gross_sales
- Sample size
- 86 units
- vs category median 12 · large
- Range (low → high)
- $306K→$1.7M
- Cohort dispersion (min → max)
- Quartile band
- $495K→$1.3M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 8 / 5
- vs category median 4 / 5 · above
Compared against 201 Healthcare brands
vs Healthcare averages
How MassageLuXe Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 92
- Opened
- 6
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +7.0%
- Net unit change last year
- 3-yr CAGR
- +22.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 6
- Transfers (3yr)
- 7
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 22 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.
Available to sell in · Item 12
- California
- Hawaii
- Illinois
- Maryland
- Michigan
- Minnesota
- New York
- North Dakota
- Rhode Island
- South Dakota
States where the franchisor is registered to sell new franchises (FDD registration filings).
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%
- 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
Vintage analysis
MassageLuXe charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Litigation (Item 3)
Three pending cases involving Massage Luxe International, LLC: (1) Sapan Inamdar/Kendall Park ML, LLC v. MLI (filed May 24, 2024) - breach of contract, fraudulent inducement, promissory estoppel, and New Jersey Franchise Practices Act violations; preliminary injunction granted October 7, 2024; (2) MLI v. SPI Investments LLC/Sapan Inamdar (filed February 2, 2025) - declaratory judgment and breach of contract regarding Area Development Agreement termination; (3) SPI Investments LLC/Sapan Inamdar v. MLI (filed March 12, 2025) - New Jersey Franchise Practices Act violations, negligent misrepresentation, breach of contract, and unjust enrichment regarding ADA termination.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Schmersahl Treloar & Co.⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Restricted to system-approved products: Yes
Score breakdown · what drove the 36 / 100 rating
- 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
- 04MEDNo Item 19 financial performance representation limits transparency; disclosed $243k average net income may not reflect typical franchisee reality
- 05MINORHigh 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
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Missouri |
| Litigation count | 3 |
View Item 3 litigation summary
Three pending cases involving Massage Luxe International, LLC: (1) Sapan Inamdar/Kendall Park ML, LLC v. MLI (filed May 24, 2024) - breach of contract, fraudulent inducement, promissory estoppel, and New Jersey Franchise Practices Act violations; preliminary injunction granted October 7, 2024; (2) MLI v. SPI Investments LLC/Sapan Inamdar (filed February 2, 2025) - declaratory judgment and breach of contract regarding Area Development Agreement termination; (3) SPI Investments LLC/Sapan Inamdar v. MLI (filed March 12, 2025) - New Jersey Franchise Practices Act violations, negligent misrepresentation, breach of contract, and unjust enrichment regarding ADA termination.
Items 10, 11
Training & Operations
- Classroom training
- 8 hrs
- On-the-job training
- 72 hrs
- Training location
- On-site and corporate
- 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
93 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
MassageLuXe · FDD (2025) PDF
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.
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 A-grade franchise with a risk score of 36 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.