In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Stretch Zone franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Stretch Zone franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Stretch Zone outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the Stretch Zone franchise opportunity
Section V – Presentation and analysis of Stretch Zone’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, highest, and lowest gross sales for the franchised Stretch Zone units opened 24 or more months
- 2022 average, median, highest, and lowest gross sales for the franchised Stretch Zone units opened 13 to 23 months
Section VI – Key ratios, comparables, computations, and analyses for the Stretch Zone franchise opportunity (exclusive content for Platinum subscribers)
Section I – Stretch Zone Franchise Costs
- Stretch Zone franchise costs, based on Item 7 of the company’s 2023 FDD:
- Franchise Fee: $49,500 to $59,500
- Prepaid Rent and Security Deposit: $2,500 to $16,500
- Leasehold Improvements: $4,000 to $30,000
- Architect’s and Engineer’s Fees: $0 to $3,500
- Furniture, Fixtures, and Furnishings: $5,475 to $14,000
- Computer System: $1,850 to $2,699
- Outdoor Signage: $2,000 to $11,000
- Indoor Signage and Graphics: $5,500 to $8,750
- Utility Deposits: $200 to $800
- Office and Store Supplies: $1,055 to $2,000
- Stretching Tables and Accessories: $23,400 to $37,400
- Insurance: $1,750 to $2,500
- Licenses and Permits: $200 to $800
- Attorney’s Fees: $1,000 to $2,000
- Accountant’s Fee: $500 to $2,000
- Travel, Lodging, Meals, Etc. for Initial Training: $2,500 to $8,000
- Initial Advertising Contribution to Media Fund: $500
- Pre-Grand Opening and Studio Grand Opening Plan: $2,000 to $5,000
- Additional Funds (3 months): $10,000 to $20,000
- Total Estimated Stretch Zone Franchise Costs: $123,930 to $226,949
Section II – Stretch Zone’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Stretch Zone’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Franchise Fee: $49,500 to $59,500
- Royalty Fee: 6% of Gross Revenues
- Advertising Contributions to the Media Fund: initial contribution of $500 and 2% of monthly Gross Revenues thereafter
- Advertising Contributions to an Advertising Cooperative: 2% of monthly Gross Revenues, which counts towards Local Advertising requirement
Section III – Number of Franchised and Company-Owned Stretch Zone Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.- Outlets at the Start of the Year: 73
- Outlets at the End of the Year: 107
- Net Change: +34
2021
- Outlets at the Start of the Year: 107
- Outlets at the End of the Year: 153
- Net Change: +46
2022
- Outlets at the Start of the Year: 153
- Outlets at the End of the Year: 240
- Net Change: +87
Company-Owned
2020
- Outlets at the Start of the Year: 8
- Outlets at the End of the Year: 5
- Net Change: -3
2021
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 3
- Net Change: -2
2022
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
Section IV – News Updates on the Stretch Zone Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Stretch Zone Franchise (Item 19, 2023 FDD)
- Individual franchisees are likely to experience sales volume and cost variations. Company-Owned Units were not included. Company-Owned Units pay into a Marketing Fund but do not pay Royalty Fees.
Calendar Year 2022 Gross Sales for Franchise-Owned Units Opened 24 or More Months
Top 25%
- Average Gross Revenues: $629,931
- Highest Gross Revenues: $886,894
- Lowest Gross Revenues: $487,482
- Median Gross Revenues: $590,913
2nd 25%
- Average Gross Revenues: $428,922
- Highest Gross Revenues: $487,074
- Lowest Gross Revenues: $381,136
- Median Gross Revenues: $430,892
3rd 25%
- Average Gross Revenues: $347,139
- Highest Gross Revenues: $380,613
- Lowest Gross Revenues: $306,259
- Median Gross Revenues: $351,779
4th 25%
- Average Gross Revenues: $263,469
- Highest Gross Revenues: $305,656
- Lowest Gross Revenues: $173,894
- Median Gross Revenues: $266,743
All
- Average Gross Revenues: $417,365
- Highest Gross Revenues: $886,894
- Lowest Gross Revenues: $173,894
- Median Gross Revenues: $410,082
Calendar Year 2022 Gross Sales for Franchise-Owned Units Opened 13 to 23 Months
Top 25%
- Average Gross Revenues: $643,670
- Highest Gross Revenues: $903,254
- Lowest Gross Revenues: $516,242
- Median Gross Revenues: $603,055
2nd 25%
- Average Gross Revenues: $467,621
- Highest Gross Revenues: $514,566
- Lowest Gross Revenues: $403,675
- Median Gross Revenues: $479,703
3rd 25%
- Average Gross Revenues: $365,341
- Highest Gross Revenues: $395,470
- Lowest Gross Revenues: $325,530
- Median Gross Revenues: $363,510
4th 25%
- Average Gross Revenues: $260,148
- Highest Gross Revenues: $324,562
- Lowest Gross Revenues: $140,721
- Median Gross Revenues: $289,804
All
- Average Gross Revenues: $434,195
- Highest Gross Revenues: $903,254
- Lowest Gross Revenues: $140,721
- Median Gross Revenues: $434,018
- The following are the 6 elements comprising a “material” basis for the historical financial performance representations:
- Group Measured – The group measured includes all Franchised Units that have been operating for 24 or more months and all Franchised Units that have been operating for 13 to 23 months, out of a total of 240 Franchised Units that were operational as of December 31, 2022.
January 2022
- Franchised Outlets in System: 113
- Franchised Outlets Represented: 106
February 2022
- Franchised Outlets in System: 115
- Franchised Outlets Represented: 107
March 2022
- Franchised Outlets in System: 118
- Franchised Outlets Represented: 109
April 2022
- Franchised Outlets in System: 119
- Franchised Outlets Represented: 111
May 2022
- Franchised Outlets in System: 120
- Franchised Outlets Represented: 112
June 2022
- Franchised Outlets in System: 126
- Franchised Outlets Represented: 114
July 2022
- Franchised Outlets in System: 129
- Franchised Outlets Represented: 120
August 2022
- Franchised Outlets in System: 133
- Franchised Outlets Represented: 123
September 2022
- Franchised Outlets in System: 138
- Franchised Outlets Represented: 127
October 2022
- Franchised Outlets in System: 143
- Franchised Outlets Represented: 132
November 2022
- Franchised Outlets in System: 155
- Franchised Outlets Represented: 137
December 2022
- Franchised Outlets in System: 156
- Franchised Outlets Represented: 148
- Time Period Measured – The time period measured is calendar year 2022.
- Number of Units Measured – The number of units measured is 156*.
- Number of Units Reporting – The number of units reporting is 152*.
- Number and Percentage of Units – The number and percentage of units that achieved the stated level of performance is 152* Units of 156* Units currently operating representing 97% of all units as of December 31, 2022.
- Distinguishing Characteristics – The distinguishing characteristics of the group measured are time in operation and Company-Owned Units and Franchised Units.
- Stretch Zone had to exclude the results of operations of 4 units due to 3 units relocating and 1 unit due to compliance issues.
- The term “Gross Sales” means the revenue for services before refunds and returns.
- There have been no closures of Franchised Units during the time period measured.
- Some Units have sold this amount. Your individual results may differ. There is no assurance that you will sell as much.
Section VI – Stretch Zone Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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