Elements Massage

## Executive Summary

Elements Massage is a therapeutic massage franchise owned by WellBiz Brands, a portfolio company backed by private equity firms KSL Capital and Golub Capital. WellBiz Brands also owns Amazing Lash Studio, Radiant Waxing, and Fitness Together. Elements Massage offers personalized massage therapy focusing on therapeutic results, with training conducted at Denver, Colorado headquarters and protected territories for franchisees.

## Investment Overview

| Investment Category | Amount | |-------------------|--------| | **Initial Franchise Fee** | $40,000 | | **Total Initial Investment** | $515,789 - $729,603 | | **Paid to Franchisor/Affiliates** | $91,774 - $98,774 | | **Territory Protection** | 1.5-mile radius (limited, non-exclusive) | | **Veteran/Minority Discount** | 20% off franchise fee |

## Financial Performance

Based on the 2025 Franchise Disclosure Document:

- **Average Gross Sales:** $855,807 per year - **Estimated Earnings:** $119,813 - $154,046 annually - **Franchise Payback Period:** 5.0 - 7.0 years - **Revenue Model:** Massage therapy services, memberships, retail products

The $855,807 AUV and 5-7 year payback period demonstrate solid unit economics.

## Training and Support

Elements Massage provides comprehensive franchisee preparation:

- **Initial Training Duration:** Approximately two weeks - **Training Location:** Denver, Colorado headquarters - **Curriculum:** Foundational business model, operations, and brand standards - **Ongoing Support:** Continued operational and marketing guidance - **Technology Systems:** Booking, membership, and customer management platforms

## Network Statistics

| Metric | Value | |--------|-------| | **Parent Company** | WellBiz Brands | | **Private Equity Backers** | KSL Capital and Golub Capital | | **Sister Brands** | Amazing Lash Studio, Radiant Waxing, Fitness Together | | **FDD Year** | 2025 | | **Training Location** | Denver, Colorado |

## Competitive Analysis

### Strengths - **Strong AUV:** $855,807 average revenue demonstrates solid unit economics - **Proven Payback:** 5-7 year payback period is reasonable for category - **Private Equity Backing:** KSL Capital and Golub Capital provide resources - **Portfolio Synergies:** WellBiz Brands experience across multiple wellness concepts - **Territory Protection:** 1.5-mile protected radius provides some exclusivity - **Diversity Incentives:** 20% franchise fee discount for veterans and minorities - **Established Training:** Two-week program at dedicated headquarters

### Weaknesses - **Limited Territory:** 1.5-mile radius is relatively small protection - **Non-Exclusive Territory:** Protection is limited, not absolute - **Competition:** Massage Envy has significantly larger network - **Staffing Challenges:** Licensed massage therapist shortage is industry-wide - **Investment Level:** $516K-$730K requires significant capital

### Key Competitors 1. **Massage Envy** - Largest massage franchise with 1,100+ locations 2. **Hand and Stone** - Growing massage and facial franchise 3. **The NOW Massage** - Premium boutique massage concept 4. **MassageLuXe** - Luxury massage and spa franchise 5. **Massage Heights** - Premium massage concept

## Risk Factors

1. **Staffing Shortage:** Licensed massage therapist availability is critical 2. **Limited Territory:** 1.5-mile non-exclusive protection provides moderate security 3. **Competition:** Massage Envy dominates with much larger network 4. **Economic Sensitivity:** Wellness services may face pressure during downturns 5. **Private Equity Ownership:** PE backing may drive growth pressure 6. **Labor Costs:** Massage therapist wages continue to increase

## Investment Recommendation

Elements Massage represents a solid franchise opportunity in the therapeutic massage segment backed by WellBiz Brands infrastructure and private equity resources. The strong $855K AUV, reasonable payback period, and 20% diversity discount create attractive fundamentals.

**Best Suited For:** - Investors seeking WellBiz Brands portfolio opportunities - Veterans and minority entrepreneurs (20% franchise fee discount) - Franchisees comfortable with wellness industry staffing challenges - Operators seeking therapeutic massage positioning vs relaxation focus - Multi-unit developers building wellness franchise portfolios

**Key Considerations:** - Understand limited 1.5-mile territory implications - Assess local massage therapist labor market availability - Evaluate competition from Massage Envy and other concepts - Consider WellBiz Brands portfolio synergies (sister brands available) - Review current FDD for detailed Item 19 performance data

The WellBiz Brands backing and strong unit economics make Elements Massage compelling, but staffing challenges and limited territory protection require careful evaluation.