In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the StretchLab franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a StretchLab franchise, based on Item 7 of the company’s 2018 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a StretchLab franchise, based on Items 5 and 6 of the company’s 2018 FDD

• Section IV – Number of franchised and company-owned StretchLab outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of StretchLab’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• average, median, high, and low gross sales generated from March 1, 2017 through February 28, 2018 (the “Measurement Period”) by all 3 StretchLab Studios owned and operated by the principals of the former owner of the Proprietary Marks

• 2018 actual monthly gross sales generated since opening (July 2018) by the initial Studio that (a) was opened by StretchLab’s affiliate after StretchLab commenced franchising and subsequently sold to a System franchisee in September 2018 to be operated as a Franchised Business moving forward; and (b) utilizes all current components of the System, including pre-opening marketing and lead generation methodologies, that StretchLab expects you will undertake and utilize in connection with your Franchised Business

Section I – Background Information

12 Things You Need to Know About the StretchLab Franchise

Launches Franchise Opportunity

1.  Operating since 2015, StretchLab launched its franchise opportunity at the end of February 2018. According to StretchLab, although stretching is often overlooked, deep stretching is scientifically proven to be one of the most effective ways to decrease pain, lower risk of injury, and provide people the ability to perform better at work, in the gym, and in everyday life.

2.  Lou DeFrancisco, president of StretchLab, added, “We believe deep stretching empowers your life. After an hour at StretchLab, our clients are able to walk out with more freedom and the ability to perform better during the other 23 hours of the day. Because StretchLab is a concept from which every single person can benefit, we’re confident it will become one of the fastest-growing new boutique fitness brands in the franchise industry.”

3.  StretchLab offers a variety of one-on-one personalized stretching services including a 25-minute stretch that focuses on the client’s current stretching needs, as well as a 50-minute head-to-toe deep stretch that addresses all major muscle groups. The company is also rolling out new flexologist-led group stretch classes utilizing various stretching tools that allow multiple people to stretch together. Drop-in classes and monthly memberships are available for four or eight visits per month.

4.  Backed by Xponential Fitness, a curator of premium boutique fitness brands led by an expert team with more than 25 years of experience in fitness franchising, StretchLab is primed for nationwide expansion with territories available in all 50 states.

5.  Anthony Geisler, CEO of Xponential Fitness, said, “Because stretching is in its infancy within the fitness market, potential StretchLab franchisees have the opportunity to capitalize on an industry that hasn’t yet been exploited. We’re also able to provide StretchLab franchisees with unmatched support ranging from real estate to finance and marketing to recruitment.”

6.  With first-to-market opportunities available in all major markets across the U.S., initial demand for the StretchLab franchise opportunity is strong. StretchLab projects expansive brand development throughout the year and is currently seeking single- and multi-unit franchisees who possess a passion for StretchLab’s mission and have business or management experience. Initial investment for a StretchLab studio ranges from $153,100 to $223,500.

Signs Initial Franchise Agreements

7.  In early July 2018, less than five months after announcing its franchise opportunity, StretchLab signed initial franchise agreements to debut studios in Chicago, Illinois; Austin and Dallas, Texas; Seattle, Washington; Central New Jersey; and Eagle, Idaho. Additional agreements were also signed to significantly expand the brand’s presence throughout its home state of California, particularly in Los Angeles, San Diego, and the San Francisco Bay Area. This strategic development of 31 new units launches the StretchLab concept in all four main regions of the U.S.

8.  Lou DeFrancisco, president of StretchLab, said, “In today’s busy world, there is a growing trend toward self-care, recovery work and overall wellness. Deep stretching fulfills that desire, allowing all people to fully tackle their days, no matter what’s on the agenda. These initial franchise agreements greatly expand StretchLab’s presence throughout the country, allowing us to continue to educate consumers on the benefits of including assisted stretching in their health rituals.”

Company History

9.  StretchLab was founded by Saul C. Janson, Tim Trost, and Steve Sudell in 2015 in Venice, California as the first boutique fitness franchise that offers one-on-one assisted stretching services in a fun, energetic, communal environment. Trost was Janson’s personal trainer for over 17 years before the two got together with Sudell, who is also a personal trainer and physical therapist, to offer boutique stretching sessions.

10.  Sudell developed the stretching protocols used by StretchLab’s “flexologists.” According to Sudell, StretchLab was developed as a fitness-supplementing studio, where clients come to learn how to properly stretch after a workout.

11.  Not long after StretchLab grew to three locations, Xponential Fitness – the parent company of Club Pilates, CycleBar, Row House, and Pure Barre – acquired the company and started franchising the concept in early 2018. Today, there are a few StretchLab studios open around the country, with a few more opening sometime in 2019.

Entrepreneur’s Franchise 500

12.  StretchLab did not rank on Entrepreneur’s 2018 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of StretchLab franchise costs, based on Item 7 of the company’s 2018 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on StretchLab’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Company-Owned

2015

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  1
• Net Change:  +1

2016

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  3
• Net Change:  +2

2017

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

• In Part 1 of this Item, StretchLab discloses the average “Gross Sales” generated from March 1, 2017 through February 28, 2018 (the “Measurement Period”) by all 3 Studios owned and operated by the principals of the former owner of the Proprietary Marks and certain System components that were open and operating for the entire Measurement Period (the “Part 1 Studios”).

• The following representations are based on reports provided to StretchLab by the owner(s) of the Part 1 Studios. StretchLab and the owners of the Part 1 Studios have an agreement in place to enter into franchise agreements that will govern their operations moving forward.

• In Part 2 of this Item, StretchLab discloses the monthly Gross Sales generated by the initial Studio that (a) was opened by StretchLab’s affiliate after StretchLab commenced franchising and subsequently sold to a System franchisee in September 2018 to be operated as a Franchised Business moving forward; and (b) utilizes all current components of the System, including pre-opening marketing and lead generation methodologies, that StretchLab expects you will undertake and utilize in connection with your Franchised Business (the “Part 2 Studio”).

• The Part 2 Studio opened in July 2018 and this Item details the Gross Sales generated by this Studio in each of its first 5 months of operation. This information was reported to StretchLab by the applicable owner(s) of the Part 2 Studio over this time period.

• Accordingly, the financial performance representations contained in this Item 19 are historical representations based on past performance of existing Studios described above (collectively, the “Disclosed Studios”). StretchLab has not independently audited this information.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Part 1 – Average Gross Sales Generated by the Part 1 Studios Over the Part 1 Measurement Period