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Massage outlets go franchise

Following the fitness center model, the upscale therapy sites are linking up.

By PAUL SWIDER, Times Staff Writer
Published December 2, 2007

ST. PETERSBURG - Reflecting the popularity of new membership-based massage outlets, a new franchise will soon enter the market.

Just a year after Massage Envy opened on Fourth Street N, Hand and Stone is shopping for a similar location.

"We plan to open in the next six to nine months," said Rob Beers, the regional developer for the ambitious Hand and Stone. Beers said he hopes to sell a couple more franchises in the area soon, but the New Jersey corporate parent is aiming for 500 U.S. stores in the next five years.

In many ways, Hand and Stone would mimic Massage Envy, one of the earliest entries of the massage-to-the-masses business concept, which has opened 300 locations since 2002. In pricing and structure, Hand and Stone and others seek to match Massage Envy in the growing $9-billion industry.

"They're about the third imitator to come along," said Rich Dunning, who owns a Tampa Massage Envy and parts of the St. Petersburg store and one in Brandon.

"It's becoming more and more accepted to a wider demographic."

Both businesses encourage a $50 monthly membership that entitles the holder to a massage, with additional massages in the month at $40. The goal is to broaden the appeal and emphasize massage's health effects as much as the indulgence.

"In the past, people looked at massage as a luxury," Beers said of a service typically priced at $75 or more. "This is all part of health and wellness trends. People are recognizing that massage is not a luxury but is therapy."

Beers said massages not only relieve tension but are shown to lower blood pressure and increase levels of serotonin. A national survey by the American Massage Therapy Association indicated such benefits are why more people are seeking massage. The survey said more people get massages for medical purposes than just enjoyment, particularly active yet aging baby boomers.

Beers said the four existing Hand and Stone stores often get customers referred by doctors, but he said they don't take insurance payments.

"We're not opening this thing up to people with insurance cards," he said, "but that's the way it's headed."

Dunning said therapeutic massage is helpful and healthful, but not necessarily formal medical care.

"It's not physical therapy. It's not what people see a chiropractor for," he said. "This is for healthy people to stay that way."

A quick search for massage therapists shows dozens available, but the appearance of the chain model seems to be growing the market.

"We do see an increase in the opportunity," said Megan McLaughlin, director of career services for Florida Career College, which teaches massage in its Clearwater and Brandon campuses. "Our graduates aren't unemployed long."

Enrollment is going up, McLaughlin said, in step with increasing outlets for practice. Though many massage therapists look for a lucrative private practice, she said the chains create more jobs and help new graduates hone their craft before going solo.

A massage therapist can earn $500 to $1,000 a week, McLaughlin said. She said they earn less at the chains but often are guaranteed income, not just commission.

The chains are lucrative, too. Though regulations restrict him from discussing specific earnings, Beers said his phone rings constantly with people eager to pay the $190,000 to $390,000 franchise fee for a Hand and Stone outlet.

Dunning said he's helping others open new stores along with the seven now in Tampa Bay and he is personally investing in some.

Beers said the most attractive part of the business is that everyone wants to be there. He once pitched a franchise to a dentist who was thrilled at that novel prospect.

"This is a happy business," Beers said. "People come in happy to be there and they're happier when they leave."

Paul Swider can be reached at pswider@sptimes.com or 892-2271.

[Last modified December 1, 2007, 21:44:02]