Business

Massage Envy | Jobs, Benefits, Business Model, Founding Story

Massage Envy Franchising LLC (“Massage Envy”) seeks to make high-quality massage and skin care services easily accessible, convenient, and affordable to busy consumers.

Massage Envy was established in 2002 by businessman John Leonosio and massage therapist Shawn Haycock. They opened the first of the company’s locations in Scottsdale, Arizona.

The company has since expanded its operations significantly through franchisee arrangements to become the largest massage chain in the United States. In 2016, Massage Envy opened its first overseas location, a franchised branch in Australia.

Massage Envy completed its Series A round in December 2009, raising around USD 40 million. The company completed an additional private equity round in 2010, receiving investment from Sentinel Capital Partners. Massage Envy currently employs more than 25,000 massage therapists and estheticians at 1,200 franchised locations across 49 US states.

Business model of Massage Envy

Customer Segments

Massage Envy targets its services to the general consumer population.

The company’s clientele typically fall into one or more of the following categories:

  • Middle-Income Consumers, comprising middle class consumers who some disposable income to pay for massage and skin care therapies, but do not have the time or money to take regular trips to spas or pay for luxury services;
  • Active and Exercise-Minded Consumers, comprising consumers who engage regularly in exercise, sports, and other physical activities and who require massage therapy for injuries and or recovery; and
  • Frequent Travelers, comprising consumers who travel frequently for work or leisure and take advantage of massage and skin care services to rest and recover.
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According to an article form 2016, the vast majority of Massage Envy’s customers are female, with male clients making up just 25% of the company’s client base. Massage Envy serves customers primarily in the US, but has recently expanded to serve customers in Australia.

Value Propositions

Massage Envy provides value to its customers in the following ways:

  • High-Quality Services – Massage Envy employs well-trained and qualified massage therapists, ensuring that the services it provides are effective, enjoyable, and high-quality;
  • Convenience and Accessibility – Massage Envy makes massage and skin care therapies accessible by allowing customers to schedule appointments online or via a mobile app and operates out of convenient locations in urban and suburban areas across the US;
  • Affordable Prices – Massage Envy seeks to provide its clients with massage and skin care services that compare favourable to more high-end service providers, making such service available to a broader spectrum of the consumer population; and
  • Personalised Services – Massage Envy’s therapists work with customers to devise a personalised treatment plan and identify the best combinations of products for each individual customer.

Channels

Massage Envy primarily serves clients through its network of massage centres and franchise locations.

The company currently operates a network of more than 1,200 locations across 49 US states, as well as a franchise location in Australia. Services are provided to clients at these locations by trained massage therapists and estheticians directly.

Massage Envy operates a website at www.massagenvy.com, through which it offers an online booking service for its customers.

The company also offers a similar service through its mobile app, which is available on iOS and Android devices.

Through its website and mobile app, Massage Envy also offers its customers a membership service, through which customers can access discounts, members-only deals, and other benefits.

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Customer Relationships

Massage Envy allows customers to schedule appointments on a self-service basis through its website and mobile app.

The company’s services, however, are provided directly by rained massage therapists who work closely with customers to identify problem areas, preferred treatments, and beneficial products.

Massage Envy maintains a significant presence on social media, with accounts on Facebook, Twitter, YouTube, and Instagram.

The company frequently uses these channels to interact with clients, publish updates about its services, offer discounts and deals, and handle customer queries and complaints.

Key Activities

Massage Envy operates as an affordable and accessible provider of massage and skin care services. The company, through its team of massage therapists and estheticians, provides therapeutic massage and spa services to consumers across the US, and more recently in Australia.

The company’s services include Swedish massage, deep tissue massage, sports massage, prenatal massage, reflexology, trigger point therapy, cranial sacral therapy, and healthy skin facials.

The company was founded in 2002 and is based in Scottsdale, Arizona. Massage Envy is a former subsidiary of Natural Wellness USA Inc.

Key Partners

Massage Envy works closely with a varied network of partners.

These partners can be organised broadly into the following categories:

  • Supplier and Vendor Partners, comprising suppliers of equipment, products, and training that support the company’s core massage and skin care business directly, as well a third-party service providers that support the company’s business operations more broadly;
  • Marketing and Sponsorship Partners, comprising various companies and organisations with which the company collaborates in marketing and sponsorship programs, developing its brand and that of its partners;
  • Franchise Partners, comprising various companies and business owners that operate franchise locations across the US and Australia in partnership and on behalf of Massage Envy; and
  • Strategic Partners, comprising other partner companies and organisations with which Massage Envy collaborates on other development, branding, and business projects.
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In 2017, Massage Envy was notably named as an official marketing partner of the PGA Tour, and launched an extensive franchising partnership with Garnett Station Partners, under which the later agreed to own and operate 70 Massage Envy locations.

Key Resources

Massage Envy’s key resources are its physical locations, its franchise partners, its teams of massage therapists and estheticians, its suppliers and vendors, and its branding.

The company also relies on its IT and communications infrastructure for the development and operations of its website and mobile application.

Cost Structure

Massage Envy incurs costs in relation to the provision of massage and skin care services.

This includes costs relating to the procurement of equipment and third-party services, the payment of salaries and benefits to its employees, and the operation of its various locations – including utility and rental costs.

The company also incurs costs in relation to the development of its website and mobile app and the maintenance of its IT and communications infrastructure.

Revenue Streams

Massage Envy generates revenue through the provision of massage and skin care services and the operation of a franchise network.

The company’s revenue is derived from two principal sources: fees and payments made by consumers at the company’s locations in return for services and products; and franchise fees paid to the company by its franchisees across the US and Australia.

Massage Envy is a private company and does not publish details of its sales or revenue figures online.

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