Massage Envy opens 1000th store - Phoenix Business Journal

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Aug 18, 2014, 12:08pm MST

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Scottsdale-based Massage Envy recently opened its 1,000th location, reaching an elite status among franchised companies.


Tim GallenReporter- Phoenix Business JournalEmail *|* LinkedIn *|* Twitter *|* Google+
Massage Envy is a franchise in rare company.
The Scottsdale-based spa group opened its 1,000th location this month in Pennsylvania, reaching that milestone following a 2013 where it generated $1 billion in systemwide sales for the first time.
Launched in 2002, Massage Envy has ridden the wave of the larger U.S. spa industry, which has exploded since the turn of the century.
In 1999, there were fewer than 5,000 spa establishments in the U.S. Today, more than 20,000 are in operation, according to the International Spa Association.
“The last few years have been incredible in terms of growth for Massage Envy Spa," said COO Joe Luongo. "Our continued success is a direct result of the passion our franchisees, regional developers and team members bring to our clinics every day across the United States.â€￾
Even with opening its 1,000th spa, Massage Envy isn’t finished. The company recently signed 33 new franchise agreements across the U.S. and is on track to open 112 locations by the end of the year.
The U.S. spa industry saw $14.7 billion in sales during 2013, according to the ISA. That was up more than 5 percent from 2012. The industry also saw a record number of visitors last year with 164 million, which was a 2.5 percent increase from the previous year.
Of those visits, Massage Envy welcomed 1.5 million a month.
Beyond its own industry, Massage Envy is one of the rare companies that operate 1,000 or more units.
According to FRANdata, a franchise industry database, only 2.4 percent of franchised brands operate 1,000 or more units.
Massage Envy continues to seek franchisees in territories such as Cheyenne, Wyoming; Tuscaloosa, Alabama; Los Angeles County, California; Des Moines, Iowa and others.
Potential franchisees must possess a minimum net worth of $500,000 and have at least $150,000 in liquid assets. Depending on real estate, franchisees can expect an initial investment to open a Massage Envy to range from $412,600 to $938,900.
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