Health & Fitness FDD Analyzed

Stretch Lab

Stretch Lab Franchise SPV, LLC

Irvine, CA Website FDD: March 14, 2025
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Investment Range

$269,019 - $610,224

Franchise Fee

$65,000

Royalty

8%

Marketing Fee

4%

Total Units

485

Median Revenue

$535,521/yr

AI Summary

Stretch Lab is a fitness studio franchise that provides specialized one-on-one and group stretching services using designated equipment. To open a studio, the required initial investment ranges from $269,019 to $610,224, which includes a standard $65,000 franchise fee, and franchisees pay an ongoing 8% royalty on gross sales. The system is experiencing rapid growth, expanding from 283 to 485 franchised locations in the U.S. over the last two years. However, a notable risk is the extensive litigation involving the parent company, Xponential Fitness, Inc., which faces a securities class action lawsuit and multiple franchisee disputes across its various brands alleging fraudulent inducement and disclosure violations.

Unit Growth

Last 5 years

2022

284

+51.4%

2023

430

+12.8%

2024

485

Initial Investment Breakdown

CategoryLowHigh
Initial Franchise Fee$65,000$65,000
Sourcing Fee$0$28,000
Travel & Living Expenses While Training$0$3,000
Real Estate/Lease and Professional Fees$16,500$43,000
Net Leasehold Improvements (Net of Estimated Tenant Improvement Allowances)$3,500$180,500
+ 9 more categories (apply to see all)
TOTAL INVESTMENT$269,019$610,224

Financial Performance Data

Access detailed revenue metrics, expense breakdowns, and profitability data from the Item 19 Financial Performance Representation.

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Franchisee Contact Directory

639

Connect directly with existing franchise owners to learn about their experience, get real insights, and validate your decision.

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Is Stretch Lab a Good Investment?

Based on the FDD data, here are key factors to consider when evaluating a Stretch Lab franchise opportunity:

Potential Advantages

  • Growing network with 485 locations
  • Strong growth trajectory with 12.8% year-over-year expansion
  • Financial Performance Representation (Item 19) available for review

Considerations

  • Higher royalty fee of 8% compared to industry average
  • Litigation history disclosed in FDD (review Item 3 carefully)
  • Bankruptcy history disclosed in FDD (review Item 4 carefully)

Disclaimer: This analysis is based on publicly available FDD data and should not be considered financial advice. Always consult with a franchise attorney and accountant before making any investment decision.

Frequently Asked Questions About Stretch Lab

How much does a Stretch Lab franchise cost?

The total initial investment for a Stretch Lab franchise ranges from $269,019 to $610,224. This includes the franchise fee, equipment, inventory, real estate, and other startup costs as disclosed in the FDD.

What is the Stretch Lab franchise fee?

The initial franchise fee for Stretch Lab ranges from $65,000 to $65,000.

What are the ongoing fees for a Stretch Lab franchise?

Stretch Lab franchisees pay a 8% royalty fee and a 4% marketing/advertising fee on an ongoing basis.

How many Stretch Lab franchise locations are there?

Stretch Lab currently operates 485 franchise locations. This includes both franchised and company-owned units.

Quick Facts

Litigation Disclosed
Bankruptcy Disclosed
Protected Territory Yes
Item 19 (FPR) Available
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