If you have a scantily clad Oriental lady at the front desk then calling yourself a legitimate massage place is rather difficult.
You were not being “baited”, rather checked out. If you had responded to her then you would have gotten a massage on a different appendage. It’s just deniability for the law if illegal in your area and to allow them to maintain a large non-sexual massage clientele if not illegal .
You’d be wrong. There was one less than a mile from my house that was busted about two years ago. It was on the second floor of little strip mall (heh!) with a small, very ordinary sign.