Stretch Lab

Stretch Lab

Stretch Lab franchises allow owners to operate fitness studios offering specialized one-on-one and group stretching classes, related therapy services, and other approved fitness services using proprietary equipment and techniques as part of the Stretch Lab system. The business model involves franchisees paying initial franchise fees, development fees for multi-unit agreements, and ongoing royalties while adhering to system standards for operations, training (including the Flexologist Training Program), and marketing. The target market includes individuals seeking improved flexibility, pain relief, recovery, and overall wellness through assisted stretching and fitness services, competing in the crowded fitness industry with gyms, yoga studios, and personal trainers.

485
Locations
$269K–$610K
Investment
Since 2017
Franchising
Health & FitnessIrvine, CAXponential Fitness, Inc.www.stretchlab.comDisclaimer

Franchise Costs


Franchise Fee
$65,000
Item 5 of FDD
Initial Investment Range
$269,019 $610,224
Low: $269,019High: $610,224
Item 7 of FDD
Royalty Rate
8.00%
of gross sales
Brand Fund
2.00%
Item 6 of FDD
Fixed Monthly Fees
$675 – $675
Item 6 of FDD

8% royalty + 2% brand fund + $675/mo technology fee

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$0
Median Gross Revenue
$0
Top Quartile Revenue
$0
Bottom Quartile Revenue
$0

Data Based On: 417 Qualified Studios operated by third-party franchisees for the entire Measurement Period (January 1, 2024 to December 31, 2024).

* All values directly extracted from the 'Part A-1: Gross Revenue of Qualified Studios' table. The overall average and median were taken from the 'Total' row, and quartile average values were taken from their respective quartile rows.

Extracted Item 19 Section

How Stretch Lab Compares


Key Insights

  • #3 largest franchise system in Specialized Fitness
  • One of the lowest SBA loan default rates in Specialized Fitness
FranchiseInvestmentFeeRoyaltyLocations
Stretch Lab
Current
$269K – $610K$65K8.0%485
JAZZERCISE$2K – $3K$1K20.0%5,251
F45 Training$294K – $719K$60K7.0%789
Stretch Zone$139K – $320K$60K7.0%377
BRITISH SWIM SCHOOL$122K – $168K$60K10.0%258
THE LITTLE GYM$519K – $757K$60K8.0%218
Specialized Fitness Average
35 franchises
$316K – $642K$51K7.5%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 35 Specialized Fitness franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States
1CA
79
2TX
51
3FL
35
4NY
28
5NJ
20
6IL
20
7AZ
17
8CO
17
9VA
17
10OH
16
11PA
15
12GA
14
13NC
13
14WA
11
15MI
11

+30 more states

SBA Loan History


Historical SBA 7(a) loan data for Stretch Lab franchisees (20182025)

Total Loans
140
Average Loan
$230,637
Total Volume
$32.3M
Default Rate
0.0%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts


663 franchisee contacts on file from official FDD filings.

NameSBA Loan
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active

663 Contacts Available

Unlock all Stretch Lab franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases10

Primarily claims of franchise disclosure violations (e.g., California Franchise Investment Law), fraudulent inducement, breach of contract, breach of good faith and fair dealing, and unfair trade practices by current and former franchisees of Stretch Lab and affiliated brands (AKT, Yoga Six, BFT, CycleBar, Row House, Pure Barre, Rumble).

Bankruptcy (Item 4)

Bankruptcy HistoryYes

Xponential’s COO Timothy Weiderhoft and spouse filed personal Chapter 7 on August 9, 2023 (discharged December 20, 2023). Instant Brands Acquisition Holdings Inc. et al. (former employer of CMO Louise Ocasion) filed Chapter 11 on June 11, 2023 (reorganization plan approved February 23, 2024).

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
2
Non-Renewals
0
Reacquired
0
Ceased Ops
12
Transfers
44
Sold to Franchisees
1
Projected New
63

Frequently Asked Questions


The total initial investment to open a Stretch Lab franchise ranges from $269,019 to $610,224. This includes a franchise fee of $65,000. Ongoing royalty fees are 8.0% of gross sales.

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