Massage Envy

Massage Envy, a Roark Capital Group franchise, has been franchising since 2003 — 1 years after the concept was founded in 2002 , currently with 1,100 total locations in the retail sector, headquartered in AZ. According to the 2024 FDD, the total initial investment ranges from $520K to $1.1M — a 115% spread between the low and high end that reflects how site size, market, and buildout scope change the capital requirement. This figure includes the franchise fee of $45K, equipment, leasehold improvements, and initial working capital through the ramp-up period.

Ongoing royalties run 6.0% of gross sales with an additional 2.0% national advertising fund contribution, bringing the combined ongoing cost to 8.0% of every dollar in sales. Critically, Massage Envy does disclose financial performance data in Item 19, a voluntary disclosure that only about a third of U.S. franchisors make. The reported average gross revenue per location is $1.0M, meaning the typical unit pays roughly $60K per year in royalty alone. Revenue is not profit — actual franchisee take-home depends on rent, labor, cost of goods, and local demand.

Network momentum is currently positive: Massage Envy added units at a 0.9% net rate year-over-year (40 openings, 30 closures). Sustained positive growth is a signal that the unit-economics are working well enough to attract new operators, though late-stage growth can also reflect aggressive sales push rather than operational health. Before committing capital, triangulate this summary against the full FDD, a franchise attorney's review, and direct conversations with five or more current and former franchisees from Item 20.