Relax The Back
Retail & Consumer Goods · Specialty Retail
- Active units
- 77
- Avg unit volume
- $911k
- Royalty
- 5.0%
Franchised, year-end 2023
of weekly Net Sales
About Relax The Back
Relax The Back is a brand that is dedicated to relieving pain, improving health, and fostering overall well-being for its customers. With a mission to transform routine, space, and life, Relax The Back offers a wide range of wellness solutions that help achieve a life well lived. Founded in 1984 by an osteopathic physician, the brand initially aimed to make it easier for patients to find self-care products for neck and back pain relief. Since then, Relax The Back has grown to become a specialty wellness retailer with over 80 stores across North America and a comprehensive online platform. From zero gravity chairs and perfect chair recliners to massage chairs and ergonomic pillows, Relax The Back provides best-in-class products to address specific needs. They also offer office chairs, standing desks, fitness and therapy solutions, and more. With a focus on education and personalized experiences, their store consultants are trained in spinal health disorders and strategies for a healthy lifestyle. Relax The Back has built a strong relationship with the medical community, with many medical professionals relying on them as a resource for prevention and continued care for their patients. With a holistic approach to wellness, they aim to support their clients in living healthier and happier lives. Experience the transformation and change your life with Relax The Back.
Key terms
- Franchise fee
$30k
- Referral program
We pay $5,000 to an existing franchisee or vendor who directly refers a person who becomes a new franchisee within 6 months (not paid if a broker fee is paid).
- Brand fund
2.0% of Net Sales
- Local advertising
4.0% of Net Sales
- Footprint
2,250 – 3,000 sq ft
- Veteran discount
10000.0% off franchise fee — $10,000 discount on the Initial Franchise Fee for first location
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2024 filing).
Growth
- Total locations77
Franchised units open at year-end
- New openings0
Gross new units opened during the calendar year
- 1-year unit growth rate-2.5%
Net unit growth versus prior year
- 3-year unit CAGR-2.5%
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio0.0×
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$911k
Average annual Adjusted Gross Sales for all 76 franchised Item 19 Stores in 2023.
- Annual unit volume (25th percentile)$651k
76 franchised Traditional stores open the full fiscal year; excludes 1 store-in-store. Adjusted Gross Sales excludes sales tax collected and paid, delivery fee…
- Annual unit volume (75th percentile)$1.1M
76 franchised Traditional stores open the full fiscal year; excludes 1 store-in-store. Adjusted Gross Sales excludes sales tax collected and paid, delivery fee…
- 1-year Median AUV growth rate—
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$307k
Midpoint of estimated initial investment range
↓ Lower is better - Time to open7 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate5.0%
Percent of net sales paid to the franchisor
↓ Lower is better - Sales-to-investment ratio3.0×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.