Stretch Lab

Item 7 lays out the initial investment from $269,019 to $610,224, covering the $65,000 franchise fee, build-out for 1,500-2,500 sq ft studios, proprietary equipment, and initial inventory—think Flexologist training and marketing launches. Ongoing costs hit hard with 8% royalties on gross sales, 2% brand fund, plus a $675 monthly tech fee, pressuring cash flow in a competitive field against yoga spots and personal trainers. Item 19 shines here: average gross revenue clocks $556,263, median $535,521 across mature units, suggesting solid top-line potential if you hit operational benchmarks, though no direct profit figures mean estimating 15-20% margins after fees requires careful math.

System vitality looks strong with 485 locations (up 13% from 428 in 2023), 63 projected new units, and 44 transfers indicating owner mobility rather than distress—terminations are low at just 2. SBA data bolsters credibility: 140 loans averaging $230,637 show lender confidence. Yet, litigation in Items 20 and 21 flags risks—claims of disclosure violations, fraud, and breaches under California law from franchisees of Stretch Lab and sister brands like Pure Barre, plus a bankruptcy history for the parent Xponential. This combo makes Stretch Lab a high-growth play for wellness enthusiasts with $300K+ liquidity, but vet those legal notes closely before stretching your capital.