Stretch Lab Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Health & Wellness
• Initial Investment: $269,019 to $610,224
• Franchise Fee: $65,000
• Royalty: 8% of Gross Sales
• Marketing / Ad Fee: 2% brand development fund contribution, plus 2% local advertising requirement
• Key additional recurring fees: technology fee of $675 per month; possible co-op advertising contributions if established
• Number of locations: 485 franchised locations at year-end 2024; 485 total locations
• Best Fit: manager-run with active owner oversight

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The disclosure estimates total initial investment for a single territory at $269,019 to $610,224, with $33,000 to $86,000 in additional funds. The initial franchise fee is listed at $65,000.

The main cost implication is that this is a high-cost service franchise entry point. Even the low end is material, and the upper end suggests meaningful buildout, equipment, opening, and working capital needs. For a buyer, the practical issue is not just opening cost, but whether the location can ramp enough revenue to support fixed overhead and ongoing fees.

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• Royalty: 8% of Gross Sales, payable weekly
• Brand Development Fund: currently 2% of Gross Sales, payable weekly
• Local advertising requirement: 2%
• Technology fee: $675 per month
• Regional or local advertising co-op: if established, amount determined by the co-op
• Initial instructor training fee: currently $850 per trainee for the Flexologist Training Program
• Additional training: up to $500 per day per trainer if charged
• Mystery shopper / quality control: up to $500 per year if charged

Overall, the recurring fee load is moderate in percentage terms but not minimal once the fixed technology fee and required advertising spend are included. Weekly collections also mean fees are taken on a frequent basis as revenue is generated.

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Yes, the FDD includes an Item 19 financial performance representation based on 417 Qualified Studios for the period January 1, 2024 through December 31, 2024. Qualified Studios were franchisee-owned for the full measurement period and excluded non-traditional sites.

Gross Revenue disclosed in Item 19

• System average: $556,263
• System median: $535,521
• System range: $12,406 to $1,535,958

By quartile

Top quartile (105 studios)

• Average: $842,342
• Median: $798,951
• Range: $666,912 to $1,535,958

2nd quartile (105 studios)

• Average: $596,598
• Median: $593,536
• Range: $530,855 to $662,622

3rd quartile (105 studios)

• Average: $466,475
• Median: $468,385
• Range: $401,243 to $528,881

Bottom quartile (102 studios)

• Average: $312,680
• Median: $333,101
• Range: $12,406 to $401,155

The spread is wide. The top quartile average is more than double the bottom quartile average, and the full range runs from $12,406 to more than $1.5 million in annual gross revenue. That suggests location performance is not uniform.

The disclosure also includes additional quartile tables that appear to show operating volume metrics. For the full 417-studio sample, one table shows totals of 177 average / 167 median / range 9 to 515, and another shows 18 average / 18 median / range 2 to 73. The disclosure excerpt provided here does not clearly establish the exact labels for those two tables, so they should be treated cautiously.

Revenue is not profit. Item 19 reports gross revenue, and the disclosure states that Gross Revenue is defined differently from Gross Sales under the Franchise Agreement. That means royalty calculations may not line up exactly with the revenue figures shown. The figures are historical and were obtained from franchisees' studio management systems and/or profit and loss reports provided by franchisees; the disclosure does not clearly establish that these figures were audited.

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• Model: B2C service business delivered through a studio
• Revenue pattern: appears to be recurring and service-driven, though the disclosure excerpt does not break revenue into membership versus one-time transactions
• Operations: physical studio, designated manager permitted for day-to-day operations, instructor training required, technology usage appears significant
• Staffing: requires at least one individual to complete the Flexologist Training Program, implying trained service staff are central to delivery

This is not presented as a simple passive model. The owner does not have to personally supervise the studio, but the business still appears operationally involved and staff-dependent.

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Advantages

• Item 19 includes revenue data for 417 Qualified Studios, which gives a meaningful historical sample.
• The system had 485 franchised outlets at year-end 2024, up from 428 at the start of the year.
• The owner may appoint an approved designated manager, which supports a manager-run structure.
• The FDD provides quartile revenue data, which helps show the range of outcomes rather than only a single average.

Considerations

• Initial investment is high at $269,019 to $610,224 before considering any underperformance after opening.
• Ongoing fees add up: 8% royalty, 2% fund contribution, 2% local advertising, and a $675 monthly technology fee.
• Revenue dispersion is substantial, with bottom-quartile studios far below top-quartile studios.
• Item 19 excludes non-traditional sites and includes only studios open for the full measurement period, so new-unit ramp is not shown directly.
• Territory is non-exclusive, which can limit local protection.

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This franchise may fit an investor or operator comfortable with a studio-based service business, meaningful upfront capital, and active oversight of a manager-led location.

It likely does not fit someone looking for a low-cost entry, a lightly managed side business, or a model where territory protection is a central part of the value proposition.

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• The franchise agreement term is 10 years, which creates a long commitment period.
• If a co-op is established, advertising contributions may be added on top of existing required marketing spend.
• The disclosure lists a range of contingent fees, including transfer, relocation, audit, non-compliance, and enforcement-related costs.
• Lost revenue damages may apply upon certain terminations, based on future royalty and fund contribution formulas described in the disclosure.
• Company-owned outlet count fell from 2 to 0 in 2024, so current company-operated benchmarking appears limited.

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Stretch Lab presents a studio-based wellness model with a sizable existing franchised footprint and a useful set of historical revenue figures in Item 19. The main tradeoff is straightforward: buyers get evidence of meaningful revenue potential at some locations, but they must accept high startup costs, ongoing fee obligations, non-exclusive territory, and a wide range of actual revenue outcomes.

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