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San Antonio massage franchise opens first area location
< United States >

January 5th, 2009
by John-Laurent Tronche

After being unceremoniously fired from her financial services job after 15 years, a Trophy Club resident turned to business ownership of a growing, franchised massage concept out of San Antonio.

The Keller location of the week-old Massage Heights store is the first of what the company’s top executive hopes will become many more in North Texas – 49 more, in fact, over the next few years.

And store owner Angela Dillen and her staff of 14 are banking on the fact that the recession’s impact on spending – less retail shopping and fewer miles driven – will not persuade area residents to skip $40-plus massages, which typically have been viewed as a luxury item.

“I did think about that before I signed my final franchise agreement,” said Dillen, “because at that time it was the beginning stages of the economy starting to see some trouble.”

Dillen explored the company last December and signed on in February.

“I felt like we’re only going to do better because of two reasons,” she said. “One is our pricing: We are better than someone going out and getting a luxury massage … [and] people are going to be stressed and they’re going to need avenues to alleviate that, and they can do it at Massage Heights at an affordable price.”

Massage Heights is a membership-based business. Monthly costs range from a base $49.99 – a single, one-hour massage per month – to a top-tier membership of $79.99, which includes one monthly, hour-long massage plus three complimentary, optional add-on treatments, such as hot-stone therapy or a peppermint foot scrub. Those Elevations, as the company calls them, cost $30 each for Foundation, or base, members.

Additional hour-long massages will set members back at least $40, while non-members pay $80 after an introductory massage cost of $40.

“I enjoyed going to spas and getting massages myself, so that appealed to me,” Dillen said. “It’s a good feeling.”

So far, business is booming, said Glenn Franson, CEO of the 4-year-old company.

“Jacksonville, Fla. – I have a franchisee down there who is absolutely blazing the trail and shattering the records that have been in place for a year in terms of growth and sales,” Franson said, adding that during the third quarter, existing-store sales grew about 11 percent. Stores are encouraged to meet a quota of 100 new memberships per month; Locations in Houston and Seattle are reaching 140 new members and 180 members per month, respectively, he said.

“Our business is doing better than ever,” Franson said, “and I think what that’s attributed to is [that] 50 percent of our consumers are first-time consumers of massages.

“They’re coming in for therapeutic reasoning. It’s not a consumer of yesteryear of the spa,” Franson added. “Most of our consumers are coming in because there is an urgent need to feel better. I think most Americans think of massages as a luxury, but those who are familiar know the health benefits.”

Massage Heights was founded by Wayne and Shane Evans in April 2004 in San Antonio’s Alamo Heights neighborhood, hence the company’s name. Six months later, Franson, who is Shane Evans’ brother, took over as CEO and in 2007 decided to take the company nationwide.

“We started looking for franchisees on a national basis outside of San Antonio and Austin,” Franson said. “At this point, we have about 110 franchises in place. We have identified 54 markets, and we are operating in about 26 of those markets – so the growth has been pretty fast.”

Currently 42 units are open, with those 110 franchises in various stages of development. Forthcoming North Texas locations will be in Frisco, Flower Mound, Colleyville and Plano. Dillen said she would like to open locations in Southlake and Trophy Club. Meanwhile, Franson and company are aiming for 1,620 locations nationwide by 2013.

Moving from managerial duties at Citigroup Inc. to a position of being her own boss required some work, Dillen said, but the support she has received from Massage Heights made the transition easier.

“There was a lot of adjustment, and I did foresee that,” she said, “and that’s why I wanted to do a franchise because they already have a lot of policy and procedure in place rather than me having to go out and do everything myself.”

Dillen secured a $185,000 small-business loan and invested $85,000 of her own money to open the storefront. Massage Heights concepts typically cost between $228,000 and $446,000, according to the Web site. The rights to become a regional developer, one who oversees a particular market such as North Texas, cost about $1 million, Franson said.

“I feel like it’s a great product to be able to offer,” Dillen said. “It’s taking care of [customers] and taking care of their health. They’re healthier when they leave. That appealed to me.”
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