Pricing & Cost

How much does it cost to start a med spa?

The most detailed public figure is $491,792 to $906,189 to open one med spa, from dermani MEDSPA's 2026 franchise disclosure, covering buildout, equipment, opening inventory and three months of operating funds. Sorso estimate: about $430,000 to $840,000 for an independent spa built to the same standard, after taking out the $55,000 franchise fee, the $5,000 training fee and $3,000 to $8,000 of training travel. Leasehold improvements ($124,257 to $309,376) and equipment ($117,062 to $194,300) are the two biggest lines.

Reviewed by Stanislav Sukhinin, CFALast reviewed September 30, 2026

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Definition

A med spa is a hybrid medical and aesthetic facility that offers cosmetic procedures under physician supervision.

The detail

AmSpa, the med spa trade association, covers startup cost in its State of the Industry report, but only in the paid edition. The most detailed public breakdown is a franchise disclosure. dermani MEDSPA's 2026 FDD (Item 7, reproduced by Franchise Chatter) estimates $491,792 to $906,189 to open one location. The two largest lines are leasehold improvements at $124,257 to $309,376 and equipment at $117,062 to $194,300. Opening inventory runs $48,778 to $65,808, furniture and fixtures $24,409 to $38,176, prepaid rent, utilities and security deposit $17,088 to $36,178, professional fees $4,000 to $20,000, insurance $7,000 to $14,500, business software $2,020 to $3,000, and licenses and permits $2,000 to $5,000. The disclosure also budgets $40,000 to $80,000 of additional funds for the first three months. Franchise-only costs account for $63,000 to $68,000 of the total: the $55,000 franchise fee, a $5,000 training fee and $3,000 to $8,000 of travel during training. Sorso estimate: take those out and an independent spa built to the same standard lands at about $430,000 to $840,000 ($491,792 minus $63,000 is $428,792; $906,189 minus $68,000 is $838,189). A spa that opens with fewer devices, or in space that needs less work, will come in lower, but we found no public source that itemizes that case. Who may own the spa is a state question: AmSpa's state-by-state legal summaries cover ownership under the corporate practice of medicine doctrine and the rules for management services organizations, and the answer decides how much legal work the entity setup needs. SBA 7(a) loans, which can fund equipment, furniture and working capital, go up to $5 million. Opening cost is the easier half of the question; what decides whether the spa clears anything is the ongoing operating cost structure, where injectable waste and underused equipment leases do most of the damage.

What this means for clinic owners

From Sorso

Working capital is the line to protect. dermani's disclosure budgets $40,000 to $80,000 of additional funds for the first three months; if your ramp-up will be slower than an established franchise system's, budget more, whatever your revenue forecast says. A med spa accountant who keeps a monthly cash forecast from opening day costs less than an emergency bridge loan.

Stanislav Sukhinin, CFA

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Related questions

What is the average cost per patient encounter?

The clearest published figure comes from U.S. Physical Therapy: $86.15 of adjusted clinic operating cost per visit in 2025, of which $61.93 is salaries and related costs, so labor is 72% of the cost of a PT visit. On the revenue side, Concentra reports $147.42 of revenue per visit at its occupational health centers. Both are large multi-site operators, so read them as the economics of delivery at scale, then run the same arithmetic on your own trailing twelve months.

What is a med spa worth?

A med spa (medspa) typically sells for 3x to 6x EBITDA when it is small (typically under $5M of revenue) and 5x to 8x at $5M to $20M of revenue, according to Scope Research's 2026 med spa update. Regional chains above $20M of revenue reach 7x to 12x, and high-growth national platforms 10x to 20x. Buyers pay more for repeat-client revenue, a recognized brand and scale, and less for a spa that depends on its owner.

When should I add a second clinic location?

Add a second location when the first one is full, profitable on normalized numbers and able to run without you every day, and when you can pay for the build-out and the months before the new site collects cash without touching your operating reserve.

What is Section 179 for medical equipment?

Section 179 lets medical practices immediately expense up to $2.5M of qualifying equipment placed in service in the tax year (for tax years beginning after Dec 31, 2024, per OBBBA — Public Law 119-21, signed July 4, 2025; $2.56M for tax year 2026 per Rev. Proc. 2025-32), instead of depreciating it over multiple years.

How does the revenue cycle work for a cash-only med spa with no insurance?

Cash-pay med spas skip the entire insurance billing stack, which means no claims, no denials, no insurance receivables, and no payer contracting. Revenue cycle work moves upstream into pricing, package design, deposit policies, financing partners (CareCredit, Cherry, Affirm), and chargeback management. There is almost no receivable to chase, since patients pay at checkout and CareCredit, for one, pays providers within two business days, so refund risk, deposit accounting, and sales tax compliance become the operational pressure points.

How much does it cost to start an outpatient mental health practice?

Sorso estimate: about $20,000 for a solo therapist launching on telehealth, and almost all of it is working capital to live on while insurance panels approve you. That is four months of the $59,350 median wage BLS reports for mental health counselors in May 2025 ($59,350 × 4 ÷ 12 = $19,783), matching the almost-four-month upper end of the credentialing times Colorado's insurance regulator reported. Software is small next to that (SimplePractice lists solo plans from $49 a month), prescribers add an $888 DEA registration, and a brick-and-mortar office adds rent and buildout on top.

Stanislav Sukhinin, CFA — Founder of Sorso
Stanislav Sukhinin, CFA

Founder of Sorso and a CFA charterholder. Before Sorso, Stan spent 19 years in corporate finance at institutions including UniCredit and Société Générale — managing a $450M loan portfolio and making senior partner at a major mezzanine lender by 29 — then built a fractional CFO firm exclusively for outpatient healthcare clinics.

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