Collaboration offers Massage Envy’s existing and new franchisees access to $25 million of development capital
Scottsdale, Ariz. (April 20, 2011) – Massage Envy, the pioneer and national leader of affordable and convenient massage and spa services, announced it has signed an agreement for a franchisee lending program with Franchise America Finance™(FAF) and The Bancorp Bank, a wholly-owned subsidiary of The Bancorp, Inc. (NASDAQ: TBBK). The program aims to facilitate growth by offering Massage Envy’s new and existing franchisees exclusive access to $25 million of development capital.
With this funding through FAF and The Bancorp Bank, Massage Envy has access to $10 million for new franchisees, $10 million for existing franchisees expanding within their markets and $5 million for the transfer of current centers to new owners.
“We are proud to be included as a member of this exclusive franchise lending program with Franchise America Finance and The Bancorp Bank,” said Massage Envy CEO David Humphrey. “Massage Envy is one of only 30 franchises out of thousands to be selected for this national financing program. This means Massage Envy is in the top 1 percent of franchises to receive this extraordinary opportunity for both our existing and new franchisees!”
Speaking on behalf of The Bancorp Bank, Arthur M. Birenbaum, executive vice president of commercial lending said, “Our national effort offers the smoothest, most time-sensitive loan approval process available today. This access to capitalization will enable qualified franchisees to build their business, their industry and an employment base to create jobs.”
Ronald Feldman, CEO of FAF stated “Since the inception of its franchise lending program in April 2010, FAF has allocated more than $200 million for franchisee financing for member franchise systems. FAF, The Bancorp Bank and Massage Envy worked together to create the qualifications prospective franchisees must meet to gain access to this available capital.”
“As Massage Envy continues to grow and expand in markets across the U.S., we are working to make available to our franchisees the tools and resources necessary for their success,” said Humphrey.
Massage Envy experienced record growth in 2010 with 43 new locations and 166 spa conversions. Today, the company has more than 670 Massage Envy and Massage Envy Spa locations in the U.S., making it the largest system of franchised massage centers in the industry. Nearly 1 million members belong to Massage Envy.
The company plans to continue to expand its presence in markets across the U.S., as well as throughout Canada. To fuel this growth, the company is looking for specific franchisee candidates who have the ability and the desire to learn and follow a system that ensures value and customer satisfaction.
Qualified franchisee candidates should have business sales or management experience, but do not need to have a massage therapy or spa operations background. They also should possess a minimum net worth of $500,000 and liquid assets of at least $150,000. Massage Envy and Massage Envy Spa franchisees can expect their initial investment to range from approximately $318,000 to $512,000. This includes the franchisee fee of $45,000.
For more information, visit www.massageenvy.com.
About Franchise America Finance
Franchise America Finance, LLC (FAF) was formed by a group of franchising professionals to address the void in the capital markets for franchising. FAF can provide senior and subordinated debt, mezzanine financing, and equity for franchisors and franchisees. Franchisors interested in participating in this program should contact: For more information, visit www.franchiseamericafinance.com.
About The Bancorp Inc.
The Bancorp Inc. is a bank holding company that operates The Bancorp Bank, an FDIC-insured commercial bank that delivers a full array of financial services and products both directly and through private-label affinity programs nationwide. These programs enable members, employees and customers of Bancorp and its affinity clients to access customized online-banking services. To learn more, visit www.thebancorp.com.
The Government Guaranteed Lending division of The Bancorp Bank specializes in business loans and franchisee financing through programs available from the U.S. Small Business Administration and the U.S. Department of Agriculture. It focuses on government-guaranteed lending and has more than 50 years of combined experience in the field.
About Massage Envy
Massage Envy, based in Scottsdale, Arizona, is the leading provider of therapeutic massage in the U.S. The national franchise of massage centers is dedicated to providing professional and affordable therapeutic massage services to consumers with busy lifestyles at convenient times and locations. Massage Envy Spa is its newest concept, offering Murad® healthy skin facials, as well as therapeutic massages. Founded in 2002, Massage Envy has more than 670 locations in 43 states, with new centers opening every month. The company was recently named a top AllBusiness (a D&B company) AllStar Franchise, and is a member of the International Franchise Association (IFA). For more information, visit www.massageenvy.com.