MASSAGELUXE

Item 7 lays out the initial investment from $570,900 to $799,000, covering build-out for a 2,500-3,500 sq ft spa, equipment, signage, and three months' operating capital. The $42,500 franchise fee gets you training, site selection help, and proprietary systems in a market jammed with independents and chains. Ongoing fees hit 6% royalty (discounted to 5% first year), 1% brand fund, plus 2.5-3.5% regional ads, $150 weekly POS software, and $50 monthly analytics—totaling around 10% of sales. With 92 locations up 7% from 86 in 2023, and 18 projected new units, the system's expanding steadily, backed by 7 transfers and 75 SBA loans averaging $452,793 at a tiny 1.3% default rate.

Item 19 shines: average gross revenue $881,130, median $866,676 across units, suggesting solid top-line performance without EBITDA breakdowns—strong for a service play where labor and rent eat margins. Litigation centers on terminations, breach claims, and a New Jersey practices act suit from one franchisee and an ex-developer, but no systemic red flags. For a $600K+ play, the revenue scale and low financing risk appeal if you nail location and staffing in competitive suburbs; growth momentum hints at scalability, though fees stack up quick.