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

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

• 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

• 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

• Stretch Zone Looks to Expand Its Presence in New York Through Franchising

• Princeton Equity Group Invests in Stretch Zone

• World’s Largest Stretching Concept Is Going Beyond the Stretch in 2023

• Stretch Zone Expands Across the U.S. with Eyes Set on International Locations in 2023

• Stretch Zone Flexes on Franchising in 2022

• Stretch Zone Takes the Title of First Assisted-Stretching Franchise to Reach 200 Open Locations

• Stretch Zone Ranked No. 405 on Entrepreneur’s 2023 Franchise 500 List

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) ⬇️