Verified — real FDD extraction
SBA-eligible · directory code S1086 since 2017
MassageLuXe Spa
Beauty & Personal Care · independent · est. —
MassageLuXe is a spa franchise offering massages and facials through a recurring membership model. A franchisee builds and operates a multi-room spa storefront, employing licensed therapists and estheticians and managing memberships for repeat wellness customers.
MassageLuXe Spa net unit count grew +20.9% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & strong
Distress
Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The standout in the record: owners who leave mostly sell rather than fail.
Exit rate · latest year
1.1%
vs 5.4% across 23 beauty & personal care systems
Cost to open
$576K–$835K
Item 7 total investment range
SBA loan defaults
8.8%
vs 14.8% avg across rated brands
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 1 of 92 franchised outlets left the system — a 1.1% annualized exit rate, vs 5.4% across 23 beauty & personal care systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 75 | 86 | 92 |
| Opened | 11 | 6 | 13 |
| Transfers | 9 | 7 | 7 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 1 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 86 | 92 | 104 |
| Net change | +11 | +6 | +12 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 78 SBA-backed loans to MassageLuXe Spa franchisees since 2011. Of the 34 that have resolved, 8.8% were charged off (defaulted) rather than paid in full, versus 14.8% across 576 rated brands.
8.8%
3 of 34 resolved defaulted
79.7%
avg. charged-off $ ÷ approved $
7.0%
default rate × loss severity
$558,980
what recent franchisees borrowed
88 mo
approval → charge-off, defaulted loans
17 vs 12
distinct banks still lending
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO MASSAGELUXE SPA BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
A typical MassageLuXe Spa buyer since 2020 borrowed $559K through SBA — about $82K a year in debt service. Against the brand's own disclosed median unit revenue of $883K, that is 9.3% of every dollar the store takes in — before rent, payroll, food, or royalty.
Who finances it
the Bank of Houston
11.5% of this brand's loans
Who buys it
68.5%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
Not enough resolved loans to split
Computed from 78 SBA 7(a)/504 loans to MassageLuXe Spa franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $43K franchise fee (Item 5) and a total investment of $576K–$835K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$576K–$835K
all-in investment range
Franchise fee (Item 5)
$43K
upfront, one-time
Royalty (Item 6)
6%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$60K
6% of sales, before profit
Over a 10-yr term
$600K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for MassageLuXe Spa with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand looks safer than 70% of systems we score.
Risk percentile
30 / 100
Loan-corroborated
Modeled SBA charge-off
10.0%
Observed SBA charge-off
8.8%
Top drivers: Share financed by high-loss lenders (lowers) · Single-lender dependence (raises) · System size (log units) (raises) · Item 20 exit rate (lowers). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for MassageLuXe Spa. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing MassageLuXe Spa's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →MassageLuXe Spa franchise questions, answered from the filings
What percentage of MassageLuXe Spa franchises closed last year?
In MassageLuXe Spa's latest FDD Item 20 (fiscal 2025), 1 of 92 franchised outlets left the system — an annualized exit rate of 1.1% — compared with 5.4% across 23 beauty & personal care systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a MassageLuXe Spa franchise cost?
Per MassageLuXe Spa's 2026 FDD, buying in requires an initial franchise fee of $43K (Item 5) and a total initial investment of $576K–$835K (Item 7).
What royalty does MassageLuXe Spa charge?
MassageLuXe Spa charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2026 FDD.
Does MassageLuXe Spa disclose earnings (Item 19)?
Yes — MassageLuXe Spa makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $883K. Read it closely: franchisors choose which units and which metrics to include.
How often do SBA loans for MassageLuXe Spa franchises default?
Across 78 SBA-backed loans to MassageLuXe Spa franchisees since 2011, 3 of the 34 that have resolved were charged off — a 8.8% default rate, versus about 14.8% across all rated franchise brands. This is the lender's-eye view of franchisee failure, drawn from public SBA 7(a)/504 FOIA data and independent of the franchisor's own disclosures.