Each year, the International Franchise Association (IFA), the industry’s key trade organization, and FRANdata – a leading market research firm, jointly publish a highly anticipated Franchising Economic Outlook Report. The 2023 edition includes 39 pages of detailed forecasts and predictions for the franchising industry, including a breakdown of individual business sectors. Based on the macroeconomic data, industry research, historical brand growth, and an internal database that tracks thousands of brands, it’s basically an executive summary that accurately predicts how the franchising industry is expected to grow in the year to come.
For the franchise industry as a whole, the outlook for 2023 calls for moderate but sustained growth. Overall franchise establishments are expected to grow 1.9%, adding 254,000 new jobs, with an increase in GDP output to $860 billion, representing a 4.2% YoY increase. For brands like Massage Heights, which operate squarely in the Personal Services industry, the outlook is even brighter. Below are some key takeaways from the IFA’s annual report, as well as some of the most recent industry snapshots of the spa and wellness industry.
Personal Services – Leading the Pack in Franchise Expansion
According to the report, the personal services industry is primed for expansion, as some of the fastest growing concepts such as health and fitness centers, beauty-related studios, and home health care are expected to flourish. According to FRANdata’s analysis, the personal services industry “will continue to lead franchise expansion, experiencing the highest growth both in the number of establishments and outputs.” The number of units is expected to increase 2.5% YoY to more than 120,000 new locations, while output is projected to grow 6.7% to $42 billion. Positive economic forecasts and figures such as these, which directly refer to the Personal Services industry, can be a reassuring sign that investing in a Massage Heights franchise is a smart business decision.
Drilling Further Down – the Spa and Wellness Industry
Potential franchise owners reviewing specific industries and concepts will find plenty to like about the booming massage and skincare industry. From a lengthy list of insights and statistics that reveal the potential of this market, the spa and wellness industry is clearly an opportunity in demand. Both the massage and facial skincare industries are undergoing rapid growth in a marketplace that’s worth a combined $32 billion annually. After years of pandemic-related restrictions, consumers crave services that promote self-care and wellness. According to some of the most recent research available, provided by Precedence Research, the personal care/beauty sector and the spa economy are projecting a combined annual growth rate (CAGR) of 5.9% and 5.1% respectively through the year 2030.
How You Can Capitalize…
By investing in the Massage Heights franchise opportunity, you can quickly capitalize on the booming industry growth in the spa and wellness industry. The Massage Heights business opportunity is set on the foundation of a proven business model which has been refined over the past two decades to offer franchisees a clear and concise roadmap to success. The key attribute for Massage Heights owners is the recurring revenue generated by our membership-driven business model, which includes a wide selection of services and value-added items to boost your revenue potential. This allows owners to chart a course for scalable growth through accurately forecasted financials and lean staffing. Massage Heights experienced a 25% increase in same-store sales growth from 2019-2022, an average unit volume (AUV) of over $1 million, and record-breaking revenue last year, amounting to more than $121 million total.
The massage franchise started in 2004 and has grown to more than 100 Retreats throughout North America by providing personalized wellness treatment options through therapeutic massage and skincare services. Massage Heights is a massage and wellness franchise dedicated to elevating the lives of others by providing Members and Guests with professional, affordable and resort-quality massage, skincare and wellness services. If you’d like to explore an entrepreneurial future as a Massage Heights franchise owner, we invite you to contact us today and one of our qualified franchise development representatives will follow up with you shortly.