Franchise Evaluator™: Heights Wellness Retreat

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

In the massive category of personal wellness, the massage therapy market caters to a diverse demographic spectrum, encompassing millennials to baby boomers. Massage Heights is committed to serving the general public, specifically targeting individuals within the mid-level income to affluent brackets, irrespective of age and diverse needs. Unlike some seasonal ventures, Massage Heights offers year-round services, primarily focusing on meeting adults’ health and wellness requirements in urban and suburban areas. According to the American Massage Therapy Association, in 2023 48% of all American massage service consumers stated they received their last massage for health and wellness purposes. Of the population of Americans that received massage services in 2023, 65% of men and 55% of women got a massage for health and wellness purposes while 28% of men and 21% of women got a massage for relief of pain or the purpose of pain management. In addition to its core massage and spa services, Massage Heights has also added high- quality facial services that allow franchisees to capitalize on on another segment of potential consumers in the facial/beauty industry. Innovation and ongoing enhancements to implement additional products and services that align with the Massage Heights core mission contribute to the overall 95% customer retention rate.

We categorize the market size as a large market.

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

The massage therapy sector is experiencing a substantial growth rate of roughly 8.6%, driven by an increasing number of individuals prioritizing self-care. This growth is notably propelled by the positive impact of massage therapy on mental health – and the inclusion of massage therapy as part of people’s overall wellness routine. According to the FMI Market report, the massage therapy industry has burgeoned into a $54 billion market in the United States.  With nearly 20 years of experience in their proven business model, Massage Heights continues to demonstrate a rapid upward trajectory. In 2022, they witnessed a 25% increase in same-store sales growth compared to 2019, over $1M average unit volume (AUV), and a record-breaking systemwide revenue two years in a row.

We categorize the Industry Trend as a high growth trend.

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

Massage Heights consistently strives to enhance the lives of its guests. They accomplish this by offering a diverse array of massage therapy and facial services. Rising prices for massage therapy packages, particularly in low- and middle-income economies, could potentially impede growth. Massage Heights has designed, implemented, and refined a guest experience that centers its belief that the upscale – yet affordable – therapeutic services they provide should be accessible to all. Massage Heights has recently forged an exclusive partnership with Promise Nutraceuticals, a socially conscious company co-chaired by the legendary athlete Vincent E. “Bo” Jackson, renowned for his professional baseball and football achievements. This collaborative effort will see Massage Heights introduce an add-on service and make the “Promise Drops” Topical Relief Oil available at its nationwide retreats beginning in November 2023. As a brand, Massage Heights remains committed to innovation, currently focusing on the introduction of its latest client experience – infrared light therapy.

We categorize the product and service drivers as high drivers.

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

Massage Heights main competitors, such as Massage Envy, may be other franchised massage concepts, independent massage service providers, and other establishments adding massage as a service line. As the idea of “massage” as a necessary wellness therapy enters the center of everyday consumers’ thinking, the market will continue to grow for all. The massage therapy market comprises a diverse demographic range, encompassing millennials to baby boomers. Within this market, the increasing prevalence of mental exhaustion, stress, and fast-paced lifestyles – and solutions for natural remedies – has cultivated a growing demand for massage and spa services. Massage Heights advocates for the significance of self-care, emphasizing the advantages of incorporating regular massages into one’s routine. This commitment to self-care leads to a host of wellness-enhancing benefits, such as stress reduction and improved flexibility.  What’s important to note, Massage Heights’ commitment to their guests has led to a 95% program retention rate.

We categorize the competitive climate as low-mid competitive pressure.

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

Governing authorities have implemented regulations to ensure the safety of both employees and visitors in the operation of many massage therapy and skin care businesses as well as massage therapists. Every massage therapist and esthetician is required to to be licensed in accordance with state and local laws and requirements which may be similar to the licensing requirements for other personal service providers such as hair stylists. Massage Heights upholds rigorous standards for cleanliness and operational excellence and ensures that every franchisee adheres to all applicable laws and regulations within their respective geographic areas. Additionally, they prioritize the use of top-quality massage tables, linens, and all-natural oils and product lines to enhance the guest experience.

We categorize the regulatory climate as low regulation.

How experienced is the franchisor at being a franchisor?

Massage Heights was initiated by its founders, Shane and Wayne Evans, in response to Shane’s enduring battle with chronic back pain. The co-founders recognized a significant gap in the market where many individuals grapple with discomfort stemming from muscle tension, aches, joint ailments, and stress, yet accessible therapeutic services were scarce.

Understanding the intrinsic value of self-care and the profound transformation that spa services can bring to people’s lives, Shane and Wayne established Massage Heights in 2004 in San Antonio, Texas. Presently, the company boasts a widespread presence across the United States and Canada (over 100 locations and growing), demonstrating a commitment to continued expansion and the availability of prime territories nationwide.

We categorize the Franchising Experience as Extensive.

What is the tenure, background, and commitment of the franchise’s leadership?

Massage Heights’ leadership is a dynamic force, blending seasoned expertise and fresh perspectives to guide the company toward industry leadership. This invaluable combination not only cultivates a culture of excellence but also consistently surpasses expectations, resulting in well-operated businesses. President and CEO Susan Boresow, a self-proclaimed corporate culture champion with over three decades of hands-on involvement in the massage and franchising industry, stands at the helm of this dedicated team. Under her visionary leadership, Massage Heights is poised to continue its ascent as an industry leader, committed to fostering excellence and setting new standards in the massage and spa franchise sector.

We categorize the Franchising Leaders as Highly Experienced.

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

Much of Massage Heights’ success is due to passionate, empowered franchisees who all buy into the brand vision to Elevate the Everyday. Selecting the right franchisees who all are in alignment is critical to the success of any franchise who achieves over 100 locations. Regular meetings, conferences, and open communication and collaboration are all hallmarks of a truly engaged franchisee base – and it is reflected where it matters most…where the guest meets the service experience.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

Massage Heights takes pride in highlighting the elements of its business model that render the franchise opportunity an excellent choice and a great fit for many. With almost two decades of experience within a proven business framework, Massage Heights maintains a trajectory of remarkable growth. This is underscored by a substantial 25% increase in same-store sales growth in 2022 compared to 2019. The franchise boasts an average unit volume (AUV) surpassing $1 million and achieved record-breaking revenue in 2022, exceeding $121,000,000. The brand remains dedicated to innovation, presently focusing on the incorporation of its latest client experience – infrared light therapy.

We categorize the Financial Health as Sound.