Massage Envy Announces $15 Million in Franchisee Funding Available in 2012 Through Agreement with Franchise America Finance and The Bancorp Bank
$5 Million Was Financed in 2011 to New and Existing Massage Envy Franchisees
February 09, 2012 // Franchising.com // SCOTTSDALE, Ariz. - Massage Envy, the pioneer and national leader of professional, convenient and affordable massage and spa services, announced today that new and existing Massage Envy franchisees have exclusive access to $15 million in development capital in 2012. The funding is available through a franchisee lending program agreement Massage Envy entered into with Franchise America Finance™ (FAF) and The Bancorp Bank, a wholly-owned subsidiary of The Bancorp, Inc. (NASDAQ: TBBK).
With this funding through FAF and The Bancorp Bank, Massage Envy has access to a total of $15 million for both new franchisee development, as well as existing franchisee expansion. Last year, Massage Envy franchisees took advantage of more than $5 million in funding offered through the lending program.
"We are very happy to report that we funded approximately $5 Million to Massage Envy franchisees in 2011, and have an additional $10 million in the funding process today. There is a total of $25 million allocated for Massage Envy franchisees so far," said Ronald Feldman, CEO of FAF. "Since the inception of its franchise lending program in April 2010, FAF has allocated more than $400 million for franchisee financing for member franchise systems. FAF and Massage Envy worked together to create the qualifications prospective franchisees must meet to gain access to this available capital."
Massage Envy experienced strong growth in 2011 with a 13 percent increase in new clinics, adding a total of 87 new locations. Today, there are 750 Massage Envy and Massage Envy Spa locations in 44 states, making it the largest system of franchised massage clinics in the industry. The company also is the world's largest employer of licensed/registered massage therapists with more than 16,000 therapists providing over 250,000 massages every week to a total of more than 1 million members.
"With financing so hard to access for many in this economic climate, Massage Envy is excited to be able to offer our current franchise partners, as well as incoming franchisees, access to funding that will enable them to either expand their business or purchase their first clinic," said Massage Envy CFO Greg Esgar. "Massage Envy is one of only 30 franchises out of thousands to be selected for this national financing program and we are thrilled to extend this extraordinary opportunity to Massage Envy franchisees."
Over the next several years, Massage Envy is seeking to expand further across the country with Massage Envy Spa leading the way in these development goals. To fuel this growth, the company is looking for specific franchisee candidates who have the ability and the desire to learn and follow a system that ensures value and customer satisfaction. Qualified franchisee candidates should have business sales or management experience, but do not necessarily need to have a massage therapy or spa operations background. They also should possess a minimum net worth of $500,000 and liquid assets of at least $150,000. Massage Envy and Massage Envy Spa franchisees can expect their initial investment to range from approximately $343,000 to $568,000, including the franchisee fee.
"Part of ensuring Massage Envy continues its growth and expansion in markets across the U.S. includes offering access to strong, franchise-focused lending programs such as this," added Esgar. "In doing so, we will arm our franchisees with the tools and resources they need for long-term success."
Entrepreneurs interested in exploring franchising opportunities with Massage Envy Spa may contact Lori Merrall at (480) 366-4171 and firstname.lastname@example.org, or visit Massage Envy's franchising website at http://www.massageenvyfranchise.com/.
About Franchise America Finance
Franchise America Finance, LLC (FAF) was formed by a group of franchising professionals to address the void in the capital markets for franchising. FAF can provide senior and subordinated debt, mezzanine financing, and equity for franchisors and franchisees. Franchisors interested in participating in this program should contact: Ronald Feldman or Nate Greenberg at 610-668-9780 or visit www.franchiseamericafinance.com.
About The Bancorp, Inc.
The Bancorp, Inc. is a bank holding company that operates The Bancorp Bank, an FDIC-insured commercial bank that delivers a full array of financial services and products both directly and through private-label affinity programs nationwide. These programs enable members, employees and customers of Bancorp and its affinity clients to access customized online-banking services. To learn more, visit www.thebancorp.com.
The Government Guaranteed Lending division of The Bancorp Bank specializes in business loans and franchisee financing through programs available from the U.S. Small Business Administration and the U.S. Department of Agriculture. It focuses on government-guaranteed lending and has more than 50 years of combined experience in the field.
About Massage Envy
Massage Envy, based in Scottsdale, Arizona, is the leading provider of therapeutic massage in the United States. The national franchise is dedicated to providing professional and affordable therapeutic massage and spa services to consumers with busy lifestyles at convenient times and locations. Founded in 2002, Massage Envy has 750 locations in 44 states. In addition, the average unit volume for a Massage Envy is $1 million.The company was recently ranked #57 in Entrepreneur's 2012 Franchise 500 and #29 in its Fastest Growing Franchise rankings. Massage Envy is a member of the International Franchise Association (IFA).For more information, visit MassageEnvy.com.
SOURCE Massage Envy