Testing Cupping, Float Tanks, Elements Massage Aims to Innovate
Elements Massage CEO Jeremy Morgan presents Monday at the Franchise Times Finance & Growth Conference in Las Vegas.
On the wellness spectrum where services range from clinical to beauty, Elements Massage “leans closer to the clinical end,” explains CEO Jeremy Morgan.
“We’re really anchored in the therapeutic benefits that massage can provide,” says Morgan, calling that out as a point of differentiation during his presentation Monday at the Franchise Times Finance & Growth Conference in Las Vegas. While other franchised massage brands are leaning heavily toward skincare and other beauty services, Morgan’s Elements Massage wants to innovate.
The Englewood, Colorado-based massage concept, part of WellBiz Brands, launched its Elements Innovation Lab to test new services such as cupping massage and float tanks before it considers introducing such options to franchisees. The company last week also announced the establishment of a separate business unit, Elements Corporate Ventures, to purchase, operate and build corporate Elements Massage studios. And it just purchased five locations in the Denver metro from its franchisees to further that innovation goal, says Morgan.
With 247 locations, Elements is focused on smart growth: in 2017 the brand saw 17 percent year-over-year growth and is “really built on the strength of that membership model, selling new memberships and retaining our members extremely well,” notes Morgan.
Elements has a 76 percent Net Promoter Score, bolstered by a month-to-month approach to member contracts Morgan says is “as consumer friendly a membership agreement as exists in this space.”
Top locations are pulling in $1.5 million in topline revenue, and units open for five years are making about $150,000 to the bottom line after building up their membership base. Like many of the franchises presenting at the conference, the brand wants to attract more multi-unit owners, owners it says have $100,000 more in profit and 10 percent higher profit margins than single store owners.
“Great consumer product, attractive financial returns and something that’s easy to operate—Elements very strongly delivers against all three,” says Morgan.
The Franchise Times Finance & Growth Conference continues through noon Wednesday at the Mirage Hotel in Las Vegas and features more than 50 C-level executives presenting their brands’ growth stories.