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.
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
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 | $263K – $497K | $45K | 5.0% | 604 |
| PET SUPPLIES PLUS | $537K – $2.0M | $50K | 3.0% | 502 |
| WILD BIRDS UNLIMITED | $227K – $379K | $40K | 4.0% | 340 |
Specialty Retail Average 46 franchises | $285K – $708K | $38K | 5.0% | – |
* 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
+11 more states
SBA 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.
Franchisee Contacts
77 franchisee contacts on file from official FDD filings.
| Name | SBA 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)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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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