ELEMENTS MASSAGE

Financials from the 2025 FDD paint a premium picture: initial investment spans $515,789 to $729,603, including a $40,000 franchise fee, driven by build-out and equipment for upscale studios. Ongoing fees total 6% royalty, 2% brand/ad fund, plus fixed $2,000 monthly local advertising and $600 technology fees, which can squeeze margins without strong volume. Item 19 shines brightly with average gross revenues of $936,342 and median $855,807 across studios, suggesting solid top-line potential in high-traffic areas, though profitability hinges on controlling labor and occupancy costs typical in services.

System health shows mixed signals: 9 terminations amid 29 transfers signal some turnover, but projected 8 new units indicate cautious optimism. SBA data bolsters credibility with 136 loans averaging $268,124 and an impressively low 1.5% default rate, far below industry norms, reflecting franchisee viability. The -2% contraction may stem from market saturation or post-pandemic adjustments, not systemic failure—yet high transfers warrant scrutiny. For risk-tolerant investors with $500K+ cash, Elements offers revenue upside in wellness, but expect operator intensity and validate local demand before committing.