Massage Envy enters rarefied air with 1200th franchise - Phoenix Business Journal

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Massage Envy now has 1,200 locations.*


Tim GallenReporter- Phoenix Business JournalEmail *|*LinkedIn *|*Twitter *|*Google+
Scottsdale-based Massage Envy awarded its 1,200th franchise this week, putting it in rare company.
With the newest franchise agreement inked in Ohio, the massage therapy chain inches closer to becoming a part of the top 1 percent of all franchises. According to FRANdata, a franchise industry market research group, only 2.4 percent of franchises operate 1,000 or more franchised units. At present, Massage Envy operates more than 920 across 48 states. The other 280 have been awarded and are planned.
“There are thousands of franchise brands across the country, but only a small percentage ever surpasses the 1,200-unit mark,â€￾ said Massage Envy COO Joe Luongo. “This incredible milestone is a true testament to our franchise partners and unique concept.â€￾
Massage Envy came to terms on its 1,200th franchise with existing franchisees Steve and Julie Kambeitz. The husband and wife team have operated two Massage Envy locations in Ohio since 2007. The 1,200th franchise will be the couple’s third. It is slated to open sometime in the second quarter of 2014.
The Kambeitzes cite Massage Envy’s strong corporate team and business model for the success of the brand and a reason why they agreed to a third location.
Even with 1,200 franchises under contract, Massage Envy is not done expanding. The company is planning for further growth in the coming years.
Potential franchisees ought to have a minimum net worth of $500,000 and liquid assets of at least $150,000.
Massage Envy’s franchise fee is $45,000, with a recurring 6 percent royalty fee, according to Entrepreneur.com. Franchisees can expect an initial investment range of $331,485 to $825,623 to open a Massage Envy, according to the company.