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Stretch Zone Franchise ProfileFitness Franchises > Specialty Fitness Classes |
What Are the Initial Investment Requirements for a Stretch Zone Franchise?
To open a Stretch Zone franchise, you'll need to prepare for an initial investment ranging from $133,830 to $241,099. This includes a franchise fee of $59,500, along with cash requirements that align with your total investment. Additionally, you should be aware of a royalty fee of 6% on gross revenue and a marketing fee of 2%. Ensuring you meet the net worth requirement of $150,000 to $200,000 is crucial for your application process.
What Are the Revenue Potential and Financial Returns for Stretch Zone Franchisees?
The average annual revenue for a Stretch Zone unit is approximately $392,549, with a median of $386,966. This potential revenue can vary significantly, as some units report annual revenues as low as $126,435 and as high as $968,596. Franchisees can expect a breakeven time of about 12 months, with an investment payback period of around 24 months, making it an appealing option for those looking to enter the wellness and fitness market.
What Are the Operational Costs Associated with Stretch Zone Franchise?
Owning a Stretch Zone franchise comes with various operational expenses. The total annual running costs average around $653,918, which includes rent or lease expenses of $62,917, utilities at $2,712, and payroll expenses of $44,442. Marketing and advertising costs are significant, totaling approximately $533,990. Understanding these costs is vital for managing your franchise's financial health and ensuring profitability.
How Has the Stretch Zone Franchise Grown Over Recent Years?
The Stretch Zone franchise has shown impressive growth, increasing its number of franchised units from 107 in 2021 to 240 in 2023. This expansion reflects a strong demand for its unique stretching services. The total number of units has also grown, indicating a successful business model and brand recognition in the wellness sector. As a franchisee, you would be joining a rapidly expanding network with significant opportunities for growth.
Stretch Zone 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.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Stretch Zone Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 112 | 156 | 243 |
| Net Change YoY | 44 | 87 | |
| Franchised Units | 107 | 153 | 240 |
| Net Change YoY | 46 | 87 | |
| Corporate Units | 5 | 3 | 3 |
| Net Change YoY | -2 | 0 |
Investment Overview
Stretch Zone offers a franchise investment range between $133,830 and $241,099, making it accessible for aspiring entrepreneurs. The initial franchise fee is set at $59,500, with ongoing royalty fees at 6% of gross sales and a marketing fee of 2%. To qualify, potential franchisees must demonstrate a net worth of $150,000 to $200,000, ensuring they have the financial resources to support their business.
Revenue Potential
The average annual revenue per unit for Stretch Zone franchises is approximately $392,549, with a median revenue of $386,966. This demonstrates the brand's strong market presence and potential profitability. Franchisees can expect a wide revenue range, with the lowest annual revenue reported at $126,435 and the highest at $968,596, showcasing the variability in performance based on location and management.
Breakeven and Payback
Franchisees can anticipate a breakeven period of about 12 months, which is relatively short in the franchise industry. The investment payback time is estimated at 24 months, allowing franchisees to recover their initial investment within a reasonable timeframe. This quick return on investment can be a significant selling point for potential franchisees evaluating financial viability.
Franchise Growth
Stretch Zone has shown impressive growth in franchised units, expanding from 107 units in 2021 to 240 units in 2023. This upward trajectory indicates a robust demand for its services and a strong franchise system that supports its franchisees. The increase in units reflects the brand's successful marketing and operational strategies.
Corporate Structure
The company operates both franchised and corporate units, with 5 corporate locations in 2021, which decreased to 3 in the following years. This structure allows for a balanced approach to growth, as corporate locations can serve as training grounds and benchmarks for franchisees. The mixed model provides insights into best practices that can be shared across the franchise network.
Operational Insights
Stretch Zone's average operating expenses total approximately $653,918 annually, which includes rent, utilities, insurance, and payroll. Notably, advertising and marketing expenses are significant, reflecting the brand's commitment to visibility and customer engagement. Understanding these costs is essential for franchisees to effectively manage their financial performance and ensure profitability.
Frequently Asked Questions
The initial investment for a Stretch Zone franchise ranges from $133,830 to $241,099, which includes the franchise fee and other startup costs.