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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.
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Franchise Costs
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
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
Avg. Revenue: $950,547
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Unlock financial performance dataRELAX THE BACK Franchise Analysis
Back pain relief meets retail opportunity in Relax The Back, a franchise tapping into the booming wellness sector since 2001. With products aimed at prevention and treatment for an aging demographic, it promises a unique niche amid rising demand for ergonomic solutions. Item 19 reveals compelling revenue and profit insights, but a recent dip in store count raises questions—could this contraction signal a buyer's market or underlying challenges?
Item 7 in the 2024 FDD outlines an initial investment of $194,750 to $419,850, including a $29,500 franchise fee, with total costs driven by leasehold improvements, inventory, and fixtures. Royalty starts at zero for the first 12 months, ramps to 5% in months 13-24, then the greater of 5% or $1,875 monthly thereafter, plus 2% brand fund and 2% digital co-op. Item 19 shines with average gross revenue of $950,547 and median $842,677 across 77 franchised units (2 corporate), alongside estimated profits ranging from -$149,130 to $415,633—highlighting high variance that demands scrutiny of top performers versus laggards. SBA data shows 12 loans averaging $372,142, suggesting accessible financing for qualified buyers.
System metrics tell a cautious growth story: locations fell 3% from 79 in 2022 to 77 in 2023, with just 1 projected new unit and 4 transfers. This stagnation contrasts with the revenue strength, potentially reflecting mature markets or operational hurdles in site selection and marketing. For investors eyeing wellness retail, the numbers suggest viability for those targeting affluent 35-64-year-olds ($100K+ households), but success hinges on location and execution—strong medians indicate half the units thrive, making due diligence on underperformers essential.
Analysis based on the 2024 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How RELAX THE BACK Compares
Key Insights
- Higher than average SBA loan default rate in Specialty Retail
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
RELAX THE BACK Current | $195K – $420K | $30K | 5.0% | 77 |
| MERLE NORMAN COSMETICS | $48K – $260K | N/A | N/A | 797 |
| CORNWELL | $80K – $324K | N/A | N/A | 793 |
| BATTERIES PLUS | $285K – $537K | $50K | 5.0% | 601 |
| PET SUPPLIES PLUS | $537K – $2.0M | $50K | 3.0% | 502 |
| WILD BIRDS UNLIMITED | $227K – $379K | $40K | 4.0% | 340 |
Specialty Retail Average 47 franchises | $284K – $703K | $39K | 5.0% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 47 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
+11 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for RELAX THE BACK franchisees (2010 – 2023)
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.
12 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
77 franchisee contacts on file from official FDD filings.
77 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently 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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