StretchLab Franchise Review 2025: Costs, Fees, News, Revenues and/or Profits

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

Section I – Estimated initial investment (franchise costs) for a StretchLab franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a StretchLab franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned StretchLab outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the StretchLab franchise opportunity

Section V – Presentation and analysis of StretchLab’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• average gross revenue for each calendar month from February 2023 to January 2024 for the StretchLab studios that were owned and operated by a franchisee for the entire Measurement Period (except for permitted temporary closures) and were in operation for at least 6 calendar months when their results began to be included in the data set and as of the end of the calendar month for which their results were included (“Qualified Studios”)

• average gross revenue, active members, leads, and new memberships of New Studios during their initial 12 months of operation

• 2023 average, median, maximum, and minimum monthly membership attrition rate for those Studios that were Qualified Studios as of January 31, 2024

• 2023 average revenue mix (memberships, services, fees, products) for those Studios that were Qualified Studios as of January 31, 2024

Section VI – Key ratios, comparables, computations, and analyses for the StretchLab franchise opportunity (exclusive content for Platinum subscribers)

Section I – StretchLab Franchise Costs

• StretchLab franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $65,000
• Travel and Living Expenses While Training:  $0 to $3,000
• Real Estate/Lease:  $15,000 to $39,000
• Net Leasehold Improvements:  $11,500 to $161,500
• Signage:  $9,500 to $20,500
• Insurance:  $1,100 to $2,500
• Payments in Connection with Fitness Equipment and Initial FF&E Package:  $4,500 to $12,300
• Pre-Sales and Soft Opening Retail Inventory Kit:  $12,000
• Computer System, Audio/Visual Equipment, and Related Components:  $2,500 to $3,500
• Initial Grand Opening Marketing and Advertising Spend:  $15,000
• Initial Instructor Training Fees:  $6,800 to $8,500
• Technology and Software Fees:  $3,300
• Additional Funds – 3 Months:  $10,000 to $40,000
• Total Estimated StretchLab Franchise Costs:  $156,200 to $386,100

Section II – StretchLab’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• StretchLab’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $65,000
• Royalty:  8% of Gross Sales
• Contributions to Brand Development Fund:  2% of Gross Sales
• Regional Co-Op:  as the Co-Op determines

Section III – Number of Franchised and Company-Owned StretchLab Outlets

Franchised

2021

• Outlets at the Start of the Year:  99
• Outlets at the End of the Year:  148
• Net Change:  +49

2022

• Outlets at the Start of the Year:  148
• Outlets at the End of the Year:  283
• Net Change:  +135

2023

• Outlets at the Start of the Year:  283
• Outlets at the End of the Year:  429
• Net Change:  +146

Company-Owned

2021

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

2022

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

2023

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

Section IV – News Updates on the StretchLab Franchise

• StretchLab Becomes First Assisted Stretching Franchise to Reach 500 Studios in North America

• StretchLab Hits 500 Studio Mark in North America

• Former Real Estate Exec Finds Right Fit as Multi-Unit StretchLab Owner

• StretchLab Focuses on Customized, Individual Approach

• Stretch-Focused Fitness Concept ’StretchLab’ Opens 1st Canadian Location with Expansion Plans

• StretchLab Ranked No. 356 on Entrepreneur’s 2024 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the StretchLab Franchise (Item 19, 2024 FDD)

• “Gross Revenue” means the total revenue generated by a given Studio during a particular calendar month within the Measurement Period (as defined below), including all revenue generated from the sale and provision of any and all approved services at, from, or otherwise through, that Studio.

• Gross Revenue excludes (i) sales tax (that the Studio owner must pay directly to the appropriate taxing authority), and (ii) revenue the Studio may have generated by providing the Teacher Training Program. Please note, Gross Revenue is defined differently than how “Gross Sales” is defined in the Franchise Agreement, and as such, the amount of Royalty fees you pay under the Franchise Agreement may be different than if applied to Gross Revenue data provided below.

• “Measurement Period” means the period beginning on February 1, 2023 and ending on January 31, 2024. Each month in the Measurement Period is an entire calendar month.

• A “Qualified Studio” means a Studio that was owned and operated by a franchisee for the entire Measurement Period (except for permitted temporary closures) and that was in operation for at least six calendar months when its results began to be included in the data set and as of the end of the calendar month for which its results were included. Qualified Studios do not include Studios that operated at Non-Traditional Sites.

• “Non-Traditional Site” means any location that is situated within or as part of a larger venue or facility and, as a result, is likely to draw the predominance of its customers from those persons who are using or attending events in the larger venue or facility (for example, “big box” gyms and/or fitness facilities, cruise ships, military bases, shopping malls, airports, sports facilities and stadiums, industrial or office complexes, hotels, train stations and other transportation facilities, travel plazas, casinos, hospitals, theme parks, convention centers, colleges/universities, multi-unit residential properties, and other similar captive market locations).

Part 1 – Average Gross Revenue of Qualified Studios

• The data presented in the charts below is data StretchLab obtained by polling the information directly from the franchisees’ gym management software systems and/or from profit and loss reports provided to StretchLab by franchisees.

• In all cases, the data used was the franchisees’ data. Neither StretchLab nor its affiliates have undertaken an independent investigation to verify the data that it polled from the franchisees’ gym management software systems or that was provided to it by franchisees.

• StretchLab does not anticipate the data polled from or provided by current franchisees in this Item 19 will materially differ from that of a new franchisee.

• This Item 19 contains certain historical data related to the operation of certain Studios.

• February 2023 (214 Studios):  $48,485
• March 2023 (239 Studios):  $52,045
• April 2023 (248 Studios):  $51,359
• May 2023 (259 Studios):  $51,973
• June 2023 (280 Studios):  $51,017
• July 2023 (282 Studios):  $49,939
• August 2023 (288 Studios):  $50,928
• September 2023 (303 Studios):  $49,987
• October 2023 (316 Studios):  $48,072
• November 2023 (326 Studios):  $54,497
• December 2023 (343 Studios):  $46,458
• January 2024 (348 Studios):  $45,836

• Total Annual Gross Revenue (February 2023 to January 2024):  $600,596
• Average Monthly Gross Revenue (February 2023 to January 2024):  $50,050

• Does not include Studios that operated at Non-Traditional Sites.

Part 2 – Member Information for New Studios

• The chart below provides the data relevant to New Studios as of the particular month after it opened in calendar year 2023.

Month 1

• Number of New Studios:  148
• Average Gross Revenue:  $11,621
• Average Active Members:  118
• Average Leads:  225
• Average New Memberships:  35

Month 2

• Number of New Studios:  148
• Average Gross Revenue:  $32,256
• Average Active Members:  148
• Average Leads:  224
• Average New Memberships:  32

Month 3

• Number of New Studios:  148
• Average Gross Revenue:  $42,987
• Average Active Members:  174
• Average Leads:  215
• Average New Memberships:  30

Month 4

• Number of New Studios:  113
• Average Gross Revenue:  $46,250
• Average Active Members:  185
• Average Leads:  212
• Average New Memberships:  29

Month 5

• Number of New Studios:  100
• Average Gross Revenue:  $45,399
• Average Active Members:  184
• Average Leads:  196
• Average New Memberships:  27

Month 6

• Number of New Studios:  96
• Average Gross Revenue:  $46,276
• Average Active Members:  186
• Average Leads:  191
• Average New Memberships:  25

Month 7

• Number of New Studios:  79
• Average Gross Revenue:  $46,170
• Average Active Members:  187
• Average Leads:  183
• Average New Memberships:  24

Month 8

• Number of New Studios:  69
• Average Gross Revenue:  $45,816
• Average Active Members:  183
• Average Leads:  184
• Average New Memberships:  22

Month 9

• Number of New Studios:  63
• Average Gross Revenue:  $46,075
• Average Active Members:  184
• Average Leads:  179
• Average New Memberships:  22

Month 10

• Number of New Studios:  46
• Average Gross Revenue:  $45,950
• Average Active Members:  190
• Average Leads:  182
• Average New Memberships:  21

Month 11

• Number of New Studios:  36
• Average Gross Revenue:  $46,105
• Average Active Members:  189
• Average Leads:  179
• Average New Memberships:  23

Month 12

• Number of New Studios:  23
• Average Gross Revenue:  $47,314
• Average Active Members:  198
• Average Leads:  178
• Average New Memberships:  24

• “Active Members” means Studio members who were party to an effective studio membership agreement with a New Studio at the conclusion of the particular calendar month.

• “Leads” means the total number of prospective Studio members who submitted contact information to New Studios regarding Studio products or services during the particular calendar month.

• “New Memberships” means the total number of new Studio members who signed a studio membership agreement in the particular calendar month. New Memberships are included in the number of Active Members for that particular calendar month.

• A “New Studio” means a Studio that was owned and operated by a franchisee and that opened in calendar year 2023.

• Does not include Studios that operated at Non-Traditional Sites.

• “Month 1” refers to the calendar month in which the Studio launched its soft opening, which refers to when the Studio opened to its members and new prospects. The Gross Revenue data provided in Month 1 only includes the Gross Revenue generated by the New Studio after the soft opening and does not include pre-opening membership sales prior to the New Studio’s soft opening, regardless of when the Studio opened during the particular calendar month.

• “Month 2” refers to the calendar month after Month 1, and the same sequence repeats itself through “Month 12.”

Part 5 – Monthly Membership Attrition Rate

• Average:  9.9%
• Number and Percentage That Met or Exceeded the Average:  176 / 50.6%
• Median:  9.9%
• Maximum:  17.3%
• Minimum:  2.3%

• “Membership Attrition Rate” means the number of cancelled Studio memberships during a particular calendar month divided by the number of Studio members at the end of the prior respective calendar month.

• The chart above reflects the average monthly Membership Attrition Rate during the 2023 calendar year for those Studios that were Qualified Studios as of January 31, 2024. There were 348 Qualified Studios as of January 31, 2024.

Part 6 – Average Revenue Mix

Memberships

• Average:  83%
• Number and Percentage That Met or Exceeded the Average:  198 / 56.9%
• Median:  84%
• Maximum:  92%
• Minimum:  64%

Services

• Average:  15%
• Number and Percentage That Met or Exceeded the Average:  142 / 40.8%
• Median:  14%
• Maximum:  35%
• Minimum:  6%

Fees

• Average:  0%
• Number and Percentage That Met or Exceeded the Average:  149 / 42.8%
• Median:  0%
• Maximum:  3%
• Minimum:  0%

Products

• Average:  2%
• Number and Percentage That Met or Exceeded the Average:  161 / 46.3%
• Median:  2%
• Maximum:  6%
• Minimum:  0%

• “Fees” means Gross Revenue attributed to fees charged by Studios, such as set up fees, cancellation fees, monthly freeze fees, and enhancement fees.

• “Memberships” means Gross Revenue attributed to down payments and recurring dues for Studio memberships and membership add-ons.

• “Products” means Gross Revenue attributed to retail products sold by Studios.

• “Services” means Gross Revenue attributed to services that Studios provide, such as personal training services, drop-in fees, and studio class packages.

• The chart above reflects the average Gross Revenue that is attributed to Memberships, Services, Fees, and Products during the 2023 calendar year for those Studios that were Qualified Studios as of January 31, 2024. There were 348 Qualified Studios as of January 31, 2024.

• Each category (Memberships, Services, Fees, and Products) are exclusive of each other.

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

Section VI – StretchLab Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️