Buying a Massage Envy franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 21 7(a) loans to buy an existing Massage Envy (classified mostly as Other Personal Care Services), totaling $16.4M. The median loan was $600,000, 7% lower than the $645,250 median for all SBA-financed acquisitions. 2 of these loans were approved in the last two fiscal years.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Massage Envy resale loans landed between $416,800 and $1,030,500.
- Lender experience exists. Customers Bank alone has financed 4 Massage Envy resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Massage Envy resale
The median SBA 7(a) loan for a Massage Envy resale was $600,000 across 21 loans (FY2018 to FY2026). Customers Bank, Wells Fargo Bank National Association and PNC Bank, National Association have financed the most Massage Envy resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Massage Envy acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 9 | $9M | $940,000 | |
| FY2019 | 5 | $2.3M | $458,000 | |
| FY2020 | 1 | $450K | $450,000 | |
| FY2021 | 1 | $350K | $350,000 | |
| FY2022 | 1 | $2.1M | $2,115,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 2 | $1.2M | $596,000 | |
| FY2025 | 2 | $963K | $481,500 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Massage Envy acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Lenders financing Massage Envy resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Customers Bank | 4 | 19.0% | $3.1M | |
| 2 | Wells Fargo Bank National Association | 3 | 14.3% | $2.5M | |
| 3 | PNC Bank, National Association | 3 | 14.3% | $1.1M | |
| 4 | Simmons Bank | 2 | 9.5% | $1.4M | |
| 5 | Busey Bank | 1 | 4.8% | $2.2M | |
| 6 | State Empl CU | 1 | 4.8% | $2.1M | |
| 7 | Happen Bank | 1 | 4.8% | $940K | |
| 8 | Beacon Bank and Trust | 1 | 4.8% | $715K | |
| 9 | Pan American Bank & Trust | 1 | 4.8% | $600K | |
| 10 | SouthState Bank, National Association | 1 | 4.8% | $540K |
States where Massage Envy units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 6 | 28.6% | $4.9M | |
| 2 | California | 3 | 14.3% | $1.6M | |
| 3 | Illinois | 2 | 9.5% | $2.8M | |
| 4 | Missouri | 2 | 9.5% | $713K | |
| 5 | New Mexico | 1 | 4.8% | $2.1M | |
| 6 | Maryland | 1 | 4.8% | $1.2M | |
| 7 | Indiana | 1 | 4.8% | $940K | |
| 8 | Washington | 1 | 4.8% | $600K | |
| 9 | Georgia | 1 | 4.8% | $458K | |
| 10 | Florida | 1 | 4.8% | $450K |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
How lenders classify Massage Envy
Lenders code each loan to a NAICS industry. For Massage Envy the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Other Personal Care Services | 19 | 90.5% | $15.4M | |
| 2 | All Other Personal Services | 2 | 9.5% | $963K |
Questions buyers ask
How much do buyers borrow to buy a Massage Envy franchise?
The median SBA 7(a) loan for a Massage Envy resale was $600,000 across 21 loans (FY2018 to FY2026). The middle half of loans ran from $416,800 to $1,030,500. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Massage Envy acquisitions?
Customers Bank has made the most SBA acquisition loans for Massage Envy (4, 19% of the total). Wells Fargo Bank National Association, PNC Bank, National Association, Simmons Bank follow.
What interest rate and term do Massage Envy acquisition loans carry?
The average initial rate at approval was 7.38% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 10 years.
Is a Massage Envy resale riskier than other SBA-financed acquisitions?
Too few Massage Envy acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Massage Envy units being bought with SBA loans?
Texas (6), California (3), Illinois (2), Missouri (2), New Mexico (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- All Other Personal Care Services acquisitions
- Texas acquisitions
- California acquisitions
- Illinois acquisitions
- Customers Bank
- Wells Fargo Bank National Association
- PNC Bank, National Association
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Massage Envy" (franchise code S1083). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.