Massage Envy Lawsuit: Sexual Assault Settlements and Franchisor

The Massage Envy lawsuits are a long-running wave of civil cases, spanning more than a decade and locations across the country, in which clients accuse therapists of sexual assault during appointments and accuse the chain of failing to prevent or properly respond to the abuse. Most cases target the individual franchise where the assault occurred, but a growing number also name Massage Envy Franchising LLC, the corporate franchisor, on the theory that its control over training, policies, and complaint databases makes it responsible too. Settlements typically land at or near the $1 million insurance ceiling franchisees carry. A separate class action over membership fee increases has been resolved on remand from the Ninth Circuit.

What the Lawsuits Allege

The civil complaints generally pursue negligent hiring, supervision, and retention claims. Plaintiffs say franchise locations skipped meaningful background checks, discouraged clients from calling police, kept accused therapists on staff, and in some cases transferred them to other locations rather than firing them.1NBC News. Report: Dozens Accuse Massage Therapists at Large Franchise of Sexual Misconduct A 2017 BuzzFeed News investigation identified more than 180 people who had filed sexual assault lawsuits, police reports, or state licensing complaints against Massage Envy locations, their employees, or the national company, with over 100 accusers reporting therapists groped their genitals or breasts.2BuzzFeed News. More Than 180 Women Have Reported Sexual Assaults at Massage Envy

An attorney who had handled two dozen cases against the chain told NBC News that “in almost no instances does Massage Envy call the police when they get the report.”1NBC News. Report: Dozens Accuse Massage Therapists at Large Franchise of Sexual Misconduct Internal company communications obtained by BuzzFeed showed a 2014 guide flagging as “critical” the question of whether an incident “could negatively impact Massage Envy’s Spa Brand.”2BuzzFeed News. More Than 180 Women Have Reported Sexual Assaults at Massage Envy

Can the Corporate Franchisor Be Sued?

This is the central legal fight. Massage Envy Franchising has consistently argued that individual locations are independently owned and operated, and that the corporate entity does not employ the therapists. The company operates as a franchisor and does not independently own or operate any of the more than 1,100 locations across 49 states.3Massage Envy. Massage Envy Celebrates Two Decades of Excellence4Roark Capital Group. Roark Capital Acquires Massage Envy5Roark Capital Group. Portfolio

Early rulings favored the franchisor. In Vann v. Massage Envy Franchising LLC, a 2015 federal wage case, the Southern District of California granted summary judgment to the franchisor, finding franchisees held exclusive authority over hiring, firing, training, and managing employees, and that brand-uniformity requirements did not amount to day-to-day employment control.6CaseMine. Vann v. Massage Envy Franchising LLC

Recent rulings have gone the other way. In July 2024, a Delaware court in Doe v. Massage Envy Franchising, LLC allowed claims against the franchisor to proceed, finding the plaintiff had presented sufficient evidence of extensive corporate control, including detailed operating manuals, training protocols, and a centralized database of sexual assault complaints. The court permitted claims of negligence, negligent misrepresentation, and Delaware Consumer Fraud Act violations to move forward.7Lawsuit Information Center. Massage Envy Sex Abuse Lawsuit

Settlement Amounts and Financial Exposure

Most sexual assault settlements are confidential, but the public figures cluster around $1 million. That is the typical per-incident insurance ceiling for individual franchises, and it has effectively functioned as a cap.

A Conroe, Texas franchise paid $1 million to resolve claims from two women assaulted by therapist Jose Barajas Franco, exhausting the maximum limit of its insurance policy.8ABC 13. Massage Envy Sexual Assault Incident Jose Franco Charged $1 Million Settlement Allegations A separate Houston-area franchise settled a two-plaintiff lawsuit for $1 million in November 2024.7Lawsuit Information Center. Massage Envy Sex Abuse Lawsuit

The financial pressure has reached individual operators. In August 2024, a Texas-based Massage Envy franchise operator filed for Chapter 7 bankruptcy, citing significant liabilities from sexual assault lawsuits.7Lawsuit Information Center. Massage Envy Sex Abuse Lawsuit

Recent and Ongoing Cases

Litigation continues to grow. In Park Ridge, Illinois, three lawsuits were filed against a single Massage Envy location, its business manager, and two therapists as of March 2026. One plaintiff, Lisa Plourde, alleged that therapist Johnny Campbell “placed his genitalia on each of her hands” during a session. Campbell was convicted of misdemeanor battery in March 2026, and the Illinois Department of Financial and Professional Regulation temporarily suspended his license in January 2026 after he failed to comply with a chaperone order.9CBS News Chicago. Massage Envy Lawsuits Park Ridge Sexual Assault

In April 2026, a civil suit was filed in Fayette Circuit Court in Kentucky after therapist Caleb Howard, 25, was charged with first-degree sexual abuse at a Lexington franchise. The suit alleges negligence, failure to supervise, failure to implement safeguards, and further claims that Massage Envy and its franchisees have engaged in a plan to conceal reports of sexual assault from the public.10WKYT. Lawsuit Filed Against Lexington Massage Business After Employee Charged With Sexual Abuse

A June 2024 Dallas lawsuit filed by a former employee identified as R.Q. alleged that therapist Tarence Harrison sexually assaulted her during an appointment and that management assigned him additional training rather than firing him under the company’s stated “zero tolerance” policy. The complaint said it was Harrison’s third draping-related training and alleged the franchise disclosed R.Q.’s identity to Harrison and required her to keep working at the same location.11Dallas Morning News. Massage Envy Lawsuit Dallas

Criminal Convictions Behind the Civil Suits

Several criminal prosecutions have anchored the civil litigation. James R. Deiter, a former therapist at the Massage Envy in West Goshen, Pennsylvania, pleaded guilty to three counts of felony aggravated indecent assault and six counts of indecent assault involving nine women, and was sentenced in May 2016 to 6.5 to 13 years in state prison with lifetime sex-offender registration.1NBC News. Report: Dozens Accuse Massage Therapists at Large Franchise of Sexual Misconduct Six of his victims later sued Massage Envy Franchising LLC, the franchise owner Spa Dogs of West Chester, and Roark Capital in Philadelphia Common Pleas Court, alleging the company knew of Deiter’s predatory behavior but continued to employ him.12The National Trial Lawyers. Suit Filed Over Multiple Sexual Assaults at Massage Envy

Habtamu Gebreslassie worked at a Massage Envy in the Tenleytown neighborhood of Washington, D.C. A client reported in June 2017 that he touched her inappropriately, but he stayed on the job. He was arrested in September 2017 after a second client reported an assault at the same location.1NBC News. Report: Dozens Accuse Massage Therapists at Large Franchise of Sexual Misconduct In December 2017 he pleaded guilty to three counts of sexual abuse involving three victims across two massage businesses, with a plea calling for 19 months to five years in prison and lifetime sex-offender registration.13Fox 5 DC. Former Massage Envy Masseur Pleads Guilty to Sex Abuse Charges

Jose Barajas Franco was convicted in Conroe, Texas on three counts of second-degree felony sexual assault and one count of misdemeanor indecent assault involving four women, including clients and former coworkers, and was sentenced to 15 years in prison.14Fox 26 Houston. Jose Barajas Franco Conroe Massage Therapist Sexually Assaulting Clients Coworkers

The Separate Membership Fee Class Action

Not every Massage Envy lawsuit involves assault. In McKinney-Drobnis v. Oreshack, a class of members alleged Massage Envy Franchising unilaterally raised monthly membership fees in breach of contract. The parties reached a pre-certification settlement offering vouchers worth roughly $36 to $181, with a $10 million floor and up to $3.3 million in attorneys’ fees.15Reuters. Massage Envy $10 Million Coupon Settlement Fee Award Tossed by 9th Circuit

In October 2021, the Ninth Circuit vacated the settlement and the fee award. The court ruled the vouchers were “coupons” under the Class Action Fairness Act because most members could not buy a massage without spending more money, and CAFA requires attorneys’ fees in coupon settlements to be based on coupons actually redeemed, not face value. The court also faulted the district judge for failing to apply heightened scrutiny to a pre-certification settlement that combined a “clear-sailing” fee provision with a clause returning unawarded fees to Massage Envy rather than the class.16United States Court of Appeals for the Ninth Circuit. McKinney-Drobnis v. Oreshack

On remand, the parties modified the deal in March 2022, and the district court approved the revised settlement in May 2022. After roughly $2.88 million in coupons were redeemed, class counsel sought additional fees, which the district court denied as untimely. The Ninth Circuit affirmed that denial in July 2025, effectively closing the case.17HLLI. Massage Envy

Company Response and Reforms

Weeks after the BuzzFeed investigation, Massage Envy announced a “six-point plan” on December 4, 2017. It mandated annual background screenings for all therapists through a third-party provider, required franchisees to give clients who report an assault the contact information for local law enforcement and a private room to make the call, and paired the company with RAINN to review policies and develop victim support services.18Massage Envy. A Commitment to Safety The company also created a Safety Advisory Council that included a RAINN representative and sexual assault survivor advocate Danielle Dick.19CNN. Massage Envy Sexual Assault Reforms

Plaintiffs’ attorneys argue the reforms have not been enough. Cases filed years after the 2017 announcements, including the 2024 Dallas complaint alleging additional training rather than termination for an accused therapist, indicate the “zero tolerance” policy is applied unevenly across the franchise network. State legislatures have also stepped in. In Illinois, Representative Tom Weber’s HB 5387, which requires revocation of a massage therapist’s license upon conviction for a sexual offense, passed the legislature in 2026.20Rep. Weber. Rep. Weber Passes Bill to Revoke Licenses of Massage Therapists Convicted of Sexual Offenses According to CBS News, 19 massage therapists in Illinois have been disciplined by the state since 2024.9CBS News Chicago. Massage Envy Lawsuits Park Ridge Sexual Assault