Current Semi-Absentee, Oct 24, 2023
3.6
A
Massage Envy
Yes
Positive
Neutral

It's harder than ever to attract the brand's chief labor supply...licensed massage therapists. Brand went from high volume, low margin to high price low volume with lots of space to fill. It's harder to make the math work to drive a profit.

The brand continues to work on innovation. Understands the heart of the brand is Franchise location's service providers being led by a great manager.

High fixed operating costs (Monthly fixed $ debits versus % of revenue), increased legal risks, along with government forced pay increases make running this business tough. Owners have to continue to use modeling to project future COGS forcing continued price increases onto the consumer. The brand was built around making regular body care affordable for all. That just isn't possible in current economy/society with sue happy consumer, high rents demanded by landlords for the plazas this brand must be located to attract the right demo consumer, service provider pay approaching $30 before tip and Franchise fees that eat into any potential profits.

Partner with best performing franchisees by investing in their success. Provide incentives or investments into those locations to take more risks on new clinic layouts and service launches. Purchase new skin care devices, machines to then test using in service. Not put those costs on the franchise for the franchisor to just dig into the ROI of those franchise only investments by taking 8% of the top line. Cover those costs. Find ways to decrease the many monthly ACH debits that make is almost impossible for a small location to make the math work to remain in business.

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