Investors interested in buying a business have a lot to consider as they weigh countless options. While navigating the decision-making process, entrepreneurs will search for opportunities with strong earnings potential and consider any industry’s outlook.
The spa franchise industry continues to be an attractive choice for its high profit margins and continued growth.
If you’re thinking about owning a spa, here are answers to common questions about profitability, spa owner salary averages, and the benefits of owning a franchise compared to an independent business.
Is owning a spa profitable?
A key indicator of profitability is industry growth. Entrepreneurs can feel confident about a potential investment if there is increasing demand for the services or products they plan to offer.
The spa franchise industry, for example, has enjoyed considerable growth in recent years. Recent research indicates massage therapy is an $18 billion industry, more than doubling industry projections that were set in 2005. According to a consumer survey by the American Massage Therapy Association (AMTA), massages are becoming more mainstream, with 21 percent of adults receiving at least one massage between July 2018 and July 2019.
Providing prospective spa owners even more confidence in the sustainability of the spa industry, the U.S. Bureau of Labor Statistics expects a 21 percent increase in jobs for massage therapists from 2019 to 2029. This is a much faster than average increase in demand for spa professionals, considering the projected growth rate for all occupations combined is just 4 percent during the same period.
Industry experts estimate the average day spa owner salary is $80,000 per year or more, with many owners earning more than $100,000 annually. MassageLuXe stands out from the average day spa. As an owner, you have a chance to build wealth. Our processes and technology enable owners to stay on top of their business performance from near or afar which means you can balance spa ownership alongside a career, own multiple businesses or open multiple MassageLuXe spas.
Despite unique challenges during the 2020 pandemic, the overall outlook is positive. In fact, MassageLuXe was included on Franchise Gator’s “Fastest Growing Franchises” in 2020 and 2021. The franchise experienced notable expansion during government-mandated lockdowns and restrictions and isn’t slowing down, with plans to expand from 70 units to 250 units by 2025.
Can owning a MassageLuXe franchise make me even more successful?
Short answer: Yes.
Founded in 2008 in St. Louis, Missouri, MassageLuXe is a fast-growing, franchise-based spa company with a mission to provide an unparalleled experience that supports and encourages health, well-being, and quality of life. MassageLuXe professionals deliver the highest quality massage, facial, and waxing services in a comfortable, relaxing, and luxurious environment.
Consider the following three opportunities that make MassageLuXe a highly competitive option for investors considering spa ownership.
Our Membership Revenue Model Keeps Revenue Flowing
MassageLuXe thrives by mastering a membership revenue model, which is relatively new to the spa industry and the franchise community. The brand maintains a competitive edge over other spa franchises with its competitive monthly membership rates. The model allows franchise owners to enjoy a more consistent revenue stream.
Our Semi-Absentee Style Allows Multi-Unit Ownership
In addition to single-unit franchises, MassageLuXe provides entrepreneurs the opportunity to build a spa empire through Multi-Unit Development Agreements (MUDs). Investors can maximize their earnings potential by building three or more units. Rather than being present in each spa’s day-to-day operation, the franchisee hires managers to oversee the businesses while he or she focuses on the bigger picture.
The protected territory for a MassageLuXe spa location is typically a three-mile radius around the spa’s location. A multi-unit developer can earn the right to lock in a larger territory when they sign their franchise agreement, giving them time to build and grow each business. A multi-unit developer also receives a discount on franchise fees.
Support from a Proven Franchise Sets You Up for Success
Some entrepreneurs may choose to go it alone and open an independent spa. It’s important to consider what they’re losing when they opt out of partnering with a proven franchise system like MassageLuXe.
Data shows franchise owners are more likely to enjoy success. A study by FranNet found that 92 percent of franchises were still in business after two years, and 85 percent were open after five years. Investopedia reports that 25 percent of independent businesses fail within the first year, and 50 percent of those remaining fail within five years.
Support, training, and expertise from a proven franchise removes the guesswork, and sets owners up for success.
Consider how MassageLuXe can set you up for success and learn the benefits of owning a franchise.
