RELAX THE BACK

RELAX THE BACK

Relax The Back franchises operate retail stores specializing in wellness and back-related equipment, furniture, and products designed for the relief, prevention, care, and treatment of back pain and discomfort. The business model involves franchising these stores, providing guidance on site selection, marketing, purchasing, store layout, operations, inventory, and accounting systems. Target customers include individuals of all ages and economic levels, with the majority being aged 35-64 and having annual household incomes of $100,000 or more.

77
Locations
$195K–$420K
Investment
Since 2001
Franchising
RetailLong Beach, CAInteractive Health, Inc.www.RelaxTheBack.comDisclaimer

Franchise Costs


Franchise Fee
$29,500
Item 5 of FDD
Initial Investment Range
$194,750 $419,850
Low: $194,750High: $419,850
Item 7 of FDD
Royalty Rate
5.00%
of gross sales
Brand Fund
2.00%
Item 6 of FDD

5% royalty (no fee first 12 months, then 5% months 13-24, greater of 5% or $1,875/mo thereafter for first store) + 2% marketing fund + 2% digital marketing co-op

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$0
Median Gross Revenue
$0
Average Net Income
$0
Average Net Profit
$0
Average Gross Profit
$0

Data Based On: 54 franchised Item 19 Stores open for full year 2023, after excluding 19 stores that failed to deliver financial reports and 3 stores with ownership changes.

* Initial financial performance data was provided for 76 franchised stores. However, detailed cost and profit data (Gross Profit, Net Income) were presented for a sample of 54 franchised stores after excluding 19 stores that failed to deliver financial reports and 3 stores with ownership changes. The extracted `average_gross_revenue` and `median_gross_revenue` are from this 54-unit sample. `revenue_top_quartile` and `revenue_bottom_quartile` are set to null because quartile data was only provided for the 76-unit sample, not the 54-unit sample used for other metrics. `average_net_profit` was calculated as `average_gross_profit` ($503,829) minus the sum of `average_personnel_costs` ($144,970), `average_marketing_costs` ($55,546), and `average_facility_cost` ($121,099), resulting in $182,214. `best_guess_profit_low` and `best_guess_profit_high` are taken from the explicit Net Income range provided for the 54-unit sample.

Extracted Item 19 Section

How RELAX THE BACK Compares


Key Insights

  • Higher than average SBA loan default rate in Specialty Retail
FranchiseInvestmentFeeRoyaltyLocations
RELAX THE BACK
Current
$195K – $420K$30K5.0%77
MERLE NORMAN COSMETICS$48K – $260KN/AN/A797
CORNWELL$80K – $324KN/AN/A793
BATTERIES PLUS$263K – $497K$45K5.0%604
PET SUPPLIES PLUS$537K – $2.0M$50K3.0%502
WILD BIRDS UNLIMITED$227K – $379K$40K4.0%340
Specialty Retail Average
46 franchises
$285K – $708K$38K5.0%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 46 Specialty Retail franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2023)

Outlets by state across the United States

Top States
1TX
15
2CA
15
3FL
9
4AZ
5
5CO
3
6IL
3
7GA
3
8MO
2
9OK
2
10OR
2
11SC
2
12TN
2
13MI
2
14WA
1
15CT
1

+11 more states

SBA Loan History


Historical SBA 7(a) loan data for RELAX THE BACK franchisees (20102023)

Total Loans
12
Average Loan
$372,142
Total Volume
$4.5M
Default Rate
0.0%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts


77 franchisee contacts on file from official FDD filings.

NameSBA Loan
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active

77 Contacts Available

Unlock all RELAX THE BACK franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryNo
No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
0
Non-Renewals
0
Reacquired
0
Ceased Ops
2
Transfers
4
Sold to Franchisees
0
Projected New
1

Frequently Asked Questions


The total initial investment to open a RELAX THE BACK franchise ranges from $194,750 to $419,850. This includes a franchise fee of $29,500. Ongoing royalty fees are 5.0% of gross sales.

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