Massage Envy CEO Joe Magnacca

Date

Nov 03, 2016

For decades, Joe Magnacca has devoted his career to building brands and generating results for some of the top retailers across North America. He helps companies reinvent themselves, innovate and build strong business models and meaningful competitive advantages.

Now, Joe is using his experience to guide Massage Envy, the leading provider of therapeutic massage and skincare services, as it deliversunrivalled experiences for guests, compelling business opportunities for franchise owners and a clear path to profitable growth.

Joe supports the company’s more than 1,100 franchisees in providing high-quality, accessible massage and facial services, a best in class customer experience and innovative new service and retail offerings.

What is Massage Envy’s franchise opportunity all about?

The Massage Envy franchise opportunity is about empowering our franchisees to take advantage of an innovative, time-tested and successful business model, with real potential for ongoing growth.

Our franchisees operate in high-growth sector. They are part of one of the nation’s fastest growing wellness brands. They’re supported by our network, the strength of the Massage Envy brand, our industry-leading massage and skincare services, and our focus on developing innovative services, products and technologies that can fuel top and bottom line growth.

This is business you can feel good about. Every day, our franchisees help customers take great care of themselves and manage their health and wellness

Who is your ideal candidate for a Massage Envy franchise?

Our franchisees are not passive investors. They’re people who dig in. They’re engaged in building and running a great business and they have an entrepreneurial spirit. An ideal candidate has stellar interpersonal skills, embraces the art of customer service and can lead and motivate employees. It helps if franchisee candidates have some aspect of business sales or management experience, too.

Above all, we want candidates who have a passion for this business and a commitment to success.

What type of training and support do you offer Massage Envy franchisees?

Massage Envy is one of the most supportive franchise networks in the industry. During the start-up phase, we help with site selection and support, real estate and infrastructure development, therapist recruitment and awareness building. We give our franchisees detailed hands-on and classroom training in operations and financial management, our services and retail products, and how to retain and grow their member?base through customer service excellence. We ground them in the Massage Envy culture and support them leading their teams of employees and talented, professional therapists.

What are some of the advantages in being a Massage Envy franchisee?

Our membership model drives a high average unit volume and gives our franchisees access to a recurring revenue source.

We’re innovators, and are developing new service offerings and new ways to take care of customers that can create real competitive advantage and opportunities to grow. Our franchisees also benefit strong brand awareness, from aggressive marketing campaigns -- driven by national regional and localized advertising – and from PR and digital programs that attract new clients, drive membership and support high member retention.

Our company was recently ranked as the Best Franchise with an initial investment of $500,001 and up by Forbes. That speaks to the real advantages of being a Massage Envy franchisee.

Tell us a little about the Industry Market?

Health and wellness is a booming industry. Consumers are increasingly focused on their well being, and taking a proactive approach.

A recent study found that American consumers spent $30.2 billion on "complementary health" expenditures like yoga, chiropractors, herbal supplements - and massages.

This market is hungry for “body maintenance” products and services, and we’ve built a business model that makes this offering accessible and affordable. As consumers become more aware of the long-term benefits of total body care, we believe demand for our services will continue to increase.

We’re seeing these trends throughout the developed world. We recently opened our first internationally based franchise and are taking a thoughtful, strategic and measured approach to international expansion.

How successful is your company today and what are your future growth plans?

We are the largest system of massage and facial services in the U.S. and have more than 1,100 locations in 50 states with $1 billion in system-wide sales. Forbes recently ranked us 7th in “best franchisees to buy (under the entry cost category of $500,000).”

We’re the industry leader, and we have plenty of runway ahead of us.

In the U.S., we continue to focus on strategic growth in both small and large markets.

We have seen international attention increase for our brand and are excited that much of it comes from countries and partners who understand and value the franchise model.

Beyond geography, we are exploring different unit specifications and real estate options to maintain and grow the model to meet the demands of members and guests and we’re developing innovative new services offerings.

What are your franchisees saying about the business?

We have a very high retention rate. Our franchisees stay in the brand and as a result, they reinvest in their businesses in smart, measured ways. They tell us that being a Massage Envy franchisee lets them work in an area they’re passionate about and gives them an opportunity to build a successful, rewarding business.

What advice do you have for someone looking to acquire a Franchise?

Be ready to embrace your business, an actively engage in building it. Narrow your focus on the things that can make you successful and work on doing that well. Also, be realistic about your goals. Take the time to examine what truly matters to your business and invest in that.

In your opinion, why do you think that Massage Envy would be a great opportunity for someone?

Thirteen years ago, we pioneered an affordable and accessible massage and skincare membership model. Since Massage Envy was founded in 2002, our franchises have generated more than $1 billion in annual revenue and delivered upward of 100 million massages and facials to date. Those numbers speak to the strength of the model and our leadership in the health and wellness space.

There is plenty of room for growth. We operate in a fast-growing sector, and we’re in the early days of a consumer shift toward a holistic approach to health and wellness. Our market leadership position, and our focus on innovation, puts us in great place to take advantage of those trends.

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