Massage Envy’s $600 million in annual revenue and 20,000 employees

By Adam Lyons in : Adam@Champion, News // Jul 20 2010

Source: AzCentral

When he sold the clubs and was looking at another business venture, he hit on the idea of offering inexpensive massage services in an upscale setting on a membership basis, similar to a health club.

Leonesio set up his first location near Shea Boulevard and Loop 101 in Scottsdale, where he hoped to do about 400 massages per month.

The location signed up 1,400 members its first month, and Leonesio realized he had a hit.

He spent a year developing his business model into a franchise format, and in 2003 started selling Massage Envy franchises.

The Scottsdale-based company now has 624 locations open in 42 states that generate about $600 million in annual revenue and employ about 20,000 people.

Leonesio sold Massage Envy in 2008 for an undisclosed sum to Veria, a Texas-based, health-focused multimedia company that is a unit of Indian conglomerate The Essel Group.

Earlier this year, Veria sold Massage Envy to Sentinel Capital Partners, a New York-based private-equity firm that owns Taco Bell, Pizza Hut, Church’s Chicken and other franchises in a number of states. Terms of that sale also were not disclosed.

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