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Health & Beauty

LaVida Massage Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$313,250 – $529,500

Franchise Fee

$39,000

Royalty Rate

5.0%

Initial Investment Range

Low: $313,250 High: $529,500

The total initial investment to open a LaVida Massage franchise ranges from $313,250 to $529,500, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $39,000.

Midpoint estimate: $421,375

Franchise Fee

$39,000

One-time initial fee

The LaVida Massage franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the LaVida Massage brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

5.0%

of gross revenue

Ad/Marketing Fund

1.0%

of gross revenue

Total Ongoing Fee Burden: 6.0% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type Rate Type Notes
Royalty Fee 5.0 PCT Electronically debited from account each Friday. Gross Sales excludes gratuities, discounts, promotional coupons, sales tax. If sales not reported, franchisor may debit 120% of previous week's royalty.
Renewal Fee 25.0 PCT Due before execution of renewal franchise agreement
Cooperative Advertising Fund Contributions 1.0 PCT Electronically debited each Friday. Will not exceed 1% of Gross Sales. Franchisee must also spend minimum $2,500/month on local advertising for first 24 months, then 4% of gross sales thereafter.
Center Management Software Fee 119.0 FIXED Electronically debited each Friday. Also includes one-time installation fee of $900 for single unit or $2,700 for three-pack at signing.
Return Check/ACH Fee 100.0 FIXED Due each time a check/ACH is dishonored
Default Notice Fee 150.0 FIXED Due each time franchisor sends notice of default
Inspections N/A VARIABLE No charge for regular inspections. $0-$1,200 for additional inspections due to serious violations. Includes travel expenses, room and board, and employee compensation.
Audit Expenses N/A VARIABLE Due 10 days after receipt of final audit. Payable if understatement greater than 2% or if franchisee failed to submit reports. Includes cost of audit, travel, room and board, compensation of accountant and employees.
Transfer 7500.0 FIXED Due before transfer of Franchise Agreement, assets, or majority ownership. If training required: $2,500 before training, balance of $5,000 upon completion of transfer.
Training Fees (all owners and up to 2 employees for up to five days at LAVIDA training facility) N/A VARIABLE Franchisee pays for travel expenses, room and board, and compensation of personnel to attend training
Training Fees (one week for LAVIDA trainers at Franchisee location) N/A FIXED No cost to franchisee for all owners and up to 2 employees
Additional Personnel attending Initial Training 125.0 FIXED Paid in advance. Franchisee also pays for travel, room and board, and compensation of personnel
Additional Training for employees after initial training N/A VARIABLE Paid in advance. Upon request or by necessity. Plus costs of travel, room and board for franchisee employees.
Management Services Upon Franchisees Death or Disability N/A VARIABLE Daily management fee plus travel expenses
Interest on Late Payments 15.0 PCT Interest accrues daily at 15% per annum on all overdue amounts
Insurance N/A VARIABLE If franchisee fails to obtain and maintain required insurance, must reimburse franchisor if franchisor elects to get coverage
Charges for Testing and Evaluation N/A VARIABLE Applies to franchisee requests for approval of goods and suppliers. See Item 8.
Indemnification N/A VARIABLE Franchisee must reimburse franchisor for any losses, costs, or expenses incurred because of Center's operations. Must indemnify and hold franchisor harmless.
Costs of Enforcement N/A VARIABLE Franchisee reimburses franchisor for losses, costs, or expenses incurred in enforcing the Franchise Agreement
Maintenance & Up Keep N/A VARIABLE Maintenance and upkeep, except equipment, due to normal wear and tear
Redecorating / Remodeling N/A VARIABLE Expected life of equipment is 5-10 years. Redecorating varies by location, normally does not occur before 5 years. Expected cost is $250 each.

What You Get

Category

Health & Beauty

Franchise Score

73

out of 100

LaVida Massage operates a franchise providing professional massage therapy services in a relaxing spa setting. The brand specializes in various massage techniques and wellness services designed to promote physical and mental health.

Financial Performance (Item 19)

Median Revenue

$521,920

per year, per location

Mean Revenue

$562,035

per year, per location

Profitability Estimate

Estimated Owner Profit

$99,165

per year

Profit Margin

19.0%

of revenue

Estimation method: benchmark

Estimated ROI (Simple Payback): 4.2 years

Based on midpoint investment of $421,375 and estimated annual owner profit of $99,165.

Unit Growth & Failure Rate

Avg. Annual Closure Rate

1.0%

Low risk — below industry average

Net Unit Growth

-48 units

From 2019 to 2022

Unit Activity History

Year Start Opened Closed Transfers End
2019 48 -1 47
2020 47 +3 48
2021 48 +3 -1 46
2022

Is a LaVida Massage Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the LaVida Massage franchise opportunity:

Overall Score

73/100

Strong opportunity

Est. Payback Period

4.2 yrs

Average payback

Risk Level

Low

1.0% annual closure rate

LaVida Massage scores well across our evaluation criteria, indicating a strong franchise system. With median unit revenue of $521,920 and a combined fee burden of 6.0% of gross revenue, prospective franchisees should model their own financial projections carefully. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.

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