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Description
Investment Icon

What Are the Initial Investment Requirements for a Stretch Lab Franchise?

To open a Stretch Lab franchise, you need to prepare for a range of initial investment costs. The total investment can vary significantly, with a low end of approximately $156,200 and a high end reaching up to $471,100. The initial franchise fee is set at $65,000. Additionally, you should have at least $150,000 in cash readily available and a net worth ranging from $200,000 to $500,000 to qualify for ownership. This financial groundwork is crucial for ensuring you can support your franchise during its early stages.

Fees Icon

What Are the Ongoing Fees for Stretch Lab Franchisees?

As a Stretch Lab franchisee, you will be responsible for ongoing royalty and marketing fees. The royalty fee for each new unit is 8% of your gross revenue, while a marketing fee of 2% is also required. These fees contribute to the brand’s overall marketing efforts and support systems, helping you attract customers and grow your business. Understanding these ongoing costs is vital for maintaining healthy cash flow and planning your financial strategy.

Revenue Icon

What Is the Financial Performance of Stretch Lab Franchise Units?

The financial performance of Stretch Lab franchises shows promising potential for revenue generation. The average annual revenue per unit is approximately $50,928, with a median revenue of $47,181. However, revenues can vary widely, with the lowest annual revenue reported at $483 and the highest reaching $178,082. This range highlights the importance of location and management in determining a unit's success. Additionally, the average breakeven time is around 12 months, with an investment payback period of just 9 months, making it an attractive option for potential franchisees.

Breakeven Icon

How Has Stretch Lab Expanded Its Franchise Network?

Stretch Lab has experienced significant growth in its franchise network over the past few years. In 2021, there were 99 franchised units, which increased to 148 in 2022. By 2023, the number of franchised units surged to 283, indicating strong demand and successful market penetration. The franchise has also begun to establish corporate units, with 2 company-owned locations by 2023. This expansion reflects the brand's increasing popularity and the effectiveness of its franchise model, providing new franchisees with a solid foundation for success.

Stretch Lab Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$200,000 - $500,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

9 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$65,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

8%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

2%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$156,200 - $471,100
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$150,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$48,191
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$47,181
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$178,082
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$483
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Fitness Franchises
Category icon A more specific division within the broader industry.

i Category:

Specialty Fitness Classes
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Verdine Baker
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

17877 Von Karman Avenue, Suite 100, Irvine, California 92614
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

2017
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Xponential Fitness

Stretch Lab Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

285
The number of locations owned by independent franchisees.

Franchised Units i

283
The number of locations owned and run by the franchisor.

Corporate Units i

2
Units 2021 2022 2023
Total Units 99 148 285
Net Change YoY 49 137
Franchised Units 99 148 283
Net Change YoY 49 135
Corporate Units 0 1 2
Net Change YoY 1 1
Investment About

Initial Investment

The Stretch Lab franchise requires an initial investment ranging from $156,200 to $471,100. This includes a franchise fee of $65,000. Aspiring franchisees should also prepare for additional costs, including equipment, leasehold improvements, and working capital to get the business up and running.

Potential About

Financial Requirements

To qualify for a Stretch Lab franchise, candidates must have a minimum cash requirement of $150,000 and a net worth ranging from $200,000 to $500,000. These financial metrics ensure that franchisees are adequately prepared to manage the costs associated with starting and operating a successful location.

Metrics About

Revenue Potential

The average annual revenue per Stretch Lab unit is approximately $50,928, with a median annual revenue of $47,181. Revenue can vary significantly, with the lowest recorded annual revenue at $483 and the highest at $178,082. This variance highlights the importance of location, management, and marketing strategies in determining financial success.

Fees About

Breakeven and Payback

Franchisees can expect to reach their breakeven point within 12 months of operation. Moreover, the investment payback period is approximately 9 months, indicating a relatively quick return on investment compared to many other franchise opportunities.

Breakeven About

Franchise Growth

Stretch Lab has shown impressive growth in its franchise network. From 99 franchised units in 2021 to 283 in 2023, the brand has expanded significantly, reflecting strong market demand for its unique stretching services. This growth presents a promising opportunity for new franchisees to join a rapidly expanding brand.

Units About

Ongoing Fees

Franchisees are required to pay an 8% royalty fee on gross sales, along with a 2% marketing fee. These ongoing fees contribute to the overall support provided by the franchisor, including marketing initiatives and operational guidance, helping franchisees to maximize their business potential.

Frequently Asked Questions

The initial investment for a Stretch Lab franchise ranges from $156,200 to $471,100, which includes the franchise fee and other startup costs.