MASSAGE ENVY

The upfront hit is steep: $719,350 to $1,081,000 total investment per Item 7, kicked off by a $45,000 franchise fee. Ongoing fees chew 6% royalties plus 2% ad fund, tacked onto $1,185 monthly tech charges (P4 at $705, support $390, Rapid Response $90). Item 19 shines with average gross revenue of $1,137,964 and median $1,070,589—solid for wellness, implying potential 20-30% margins after costs if you hit medians, though your location and management dictate that. SBA data backs accessibility: 390 loans averaging $511,999, but a 7.7% default rate flags risks in a capital-intensive buildout.

System metrics raise flags—1009 locations after dropping 4% from 1053 in 2023, with just 2 projected new units. Terminations hit 16, non-renewals 2, but 88 transfers suggest owners reshuffling rather than bailing entirely. Litigation clusters around contract breaches, faulty POS, mandatory buys, and fraud claims, per Item 20—territorial fights and tech woes could snag you too. If you're eyeing steady membership cash flow in health-conscious markets, crunch these against your ops savvy; the revenue tease holds up, but contraction demands caution before dropping seven figures.