Massage Envy expanding internationally with first locations set to open in Australia
US spa franchisor Massage Envy is taking the first steps in international expansion, with the opening of its first location outside the US set to take place on 17 May in Sydney, Australia, and a second to follow there a week later.
The new locations are the first in a 100-unit, 15-year deal between Massage Envy and Australia-based Collective Wellness Group, which will manage Massage Envy’s Australian operations. The Collective Wellness Group also oversees operations for Australia’s 450 Anytime Fitness clubs.
Lee Knowlton, senior vice president of global sales and international at Massage Envy, told Spa Opportunities that he hopes to have 40-50 stores open in Australia in the next three years, with Sydney and Melbourne as the firm’s primary focus.
“I think we’ll see our growth in Australia accelerate over the next few years,” said Knowlton. “...(Collective Wellness Group) already have the infrastructure and the real estate, and they’re really strong players in the market.”
Knowlton said he looks at things like population, income, GDP, taxes, the economy and the awareness of the product when he’s looking at international locations, but that finding the right master-franchise partner is also important – and was key in selecting Australia as the first country for international expansion.
“We’re looking to find a partner to help us develop in the whole country,” he explained.
The Sydney location will be 2,100sq ft (195sq m) with ten treatment rooms – a slight dip in Massage Envy’s US model, which is typically closer to 3,400sq ft (316sq m) – and Knowlton said the firm will likely stick to the smaller model for international locations, where real estate tends to be pricier than in the US market.
The membership model, branding and design of the spas will be similar to in the US, with offerings of one-hour, 1.5-hour and two-hour massages and facials, with membership pricing at AU$69 (US$52, €45, £36) for a one-hour treatment.
The first Massage Envy in Sydney will also be located several doors down from an Anytime Fitness location, and while Knowlton said future locations won’t necessarily be co-located, there is certainly the potential to do so – and possible synergy between the brands.
“They are similar brand experiences,” he said. “In theory, you could go work out and then go get a massage, so I think we’ll probably have quite a few of those down the line.”
Knowlton said he hopes to have another international location signed this year – with Canada, Mexico, UAE, England and South Korea top on his list – and then another two to three countries per year from that point forward.
Massage Envy currently has more than 1,100 franchise locations in 49 US states.
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