About Stretch Lab Franchise
Stretch Lab is a boutique fitness studio franchise specializing in assisted stretching and flexibility services.
Each studio features a spacious interior with at least 10 stretch benches, offering private and group stretching classes along with related therapy services designed to improve mobility, reduce pain, and enhance overall physical performance.
Franchising since 2023 under XPOF Assetco, LLC, Stretch Lab requires an initial franchise fee of $65,000.
Stretch Lab Franchise Cost & Fees
Minimum Investment
$269K
Average Investment
$440K
Maximum Investment
$610K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $65,000 | One-time payment upon signing |
| Royalty Fee | 8% of Gross Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently, 2% of Gross Sales | National brand fund |
| Total Investment Range | $269,019 – $610,224 | Includes build-out, inventory, working capital |
The investment range of $269K–$610K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (8% of Gross Sales) and marketing fee (Currently, 2% of Gross Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| 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 |
| Signage | $7,500 | $24,000 |
| Insurance | $4,320 | $9,025 |
| Fitness Equipment & Initial FF&E Package | $64,600 | $84,100 |
| Pre-Sales and Soft Opening Retail Inventory Kit | $20,000 | $24,000 |
| Computer System, Audio/Visual Equipment, and Related Components | $5,500 | $6,000 |
| Initial Marketing & Advertising Spend | $37,900 | $44,700 |
| Initial Instructor Training Fees | $6,800 | $8,500 |
| Technology and Software Fees | $4,399 | $4,399 |
| Additional Funds – 3 months | $33,000 | $86,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $10,000 |
| Renewal Fee | $10,000 |
| Technology Fee | Currently, $675 per month |
| Audit Fee | $500 to $2,500 (plus costs of any travel) |
| Regional or Local Advertising Co-Op | As the Co-Op determines (not currently charged) |
| Local Advertising Requirement | The greater of (a) $1,500 or (b) 2% of the prior month’s Gross Sales |
| Initial Instructor Training Fee (in Connection with the Flexologist Training Program) | Currently, $850 per trainee that signs up to attend the FTP |
| Additional Training | If charged, up to $500/day per trainer. |
| Relocation Fee | $5,000 |
| Music Licensing Fee | Amounts charged by the providers and/or applicable performing rights organizations (PROs) for such music licensing |
| Insurance Policies | Amount of unpaid premium |
| Mystery Shopper and Other Quality Control Programs | If charged, $500/year |
| Late Fees | The lesser of (a) the highest applicable legal rate for open account business credit, or (b) 1.5% per month |
| Non-Compliance Fee | $100 for each day of non-compliance |
| Cost of Enforcement or Defense | All costs including attorney’s fees |
| Indemnification | All costs including attorney’s fees |
| Alternative Supplier Approval | $500 per day for personnel engaged in evaluating a supplier |
| Management Fee | The reasonable costs/expenses we incur in connection with taking over operations, including manager’s salary, room and board, travel expenses, and all other related expenses |
| Lost Revenue Damages | The applicable amount of Lost Revenue Damages, as further defined in the Remarks |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 49 hours to 50 hours and 25 minutes |
| Classroom Training | 17.5 hours to 18 hours and 55 minutes |
| On-the-Job Training | 31.5 hours |
| Training Location | Franchisor's headquarters (Irvine, CA), other designated training facilities, remotely via online learning management system, or at your Studio. |
| Additional Training | Up to five (5) days of additional/refresher training each year at our designated training facility. Franchisee is responsible for associated costs and expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | an area with a population of at least 15,000 people |
| Description | The Designated Territory is generally an area with a population of at least 15,000 people, with boundaries described in terms of zip codes, streets, landmarks, or county lines. While you will not receive an exclusive territory, the franchisor will not operate or grant a license to a third party to operate a Stretch Lab Studio within your Designated Territory as long as you are in compliance with the Franchise Agreement. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one consecutive 10-year period |
| Renewal Fee | $10,000 |
| Renewal Conditions | Execute our then-current franchise agreement, maintain possession of Authorized Location or secure an alternative, remodel Studio to System Standards, substantially complied with Franchise Agreement, in compliance with all agreements, pay successor franchise fee, give notice 90-180 days prior to expiration, sign general release. |
| Transfer Fee | $10,000 |
| Transfer Conditions | Compliance with all agreements, System Standards, all contracts; transferee executes then-current franchise agreement or assumes obligations; transferee meets requirements and completes training; pay transfer fee; sign general release; franchisor has right of first refusal. |
| Termination for Cause | Material misrepresentation or omission; insolvency/bankruptcy; abandonment of Studio; conviction of felony/crime adversely affecting reputation; unauthorized transfer; falsification of reports; unauthorized disclosure of Confidential Information or misuse of Marks; abandonment for 2 consecutive days; failure on 3 occasions within 12 months to pay amounts or comply; default of same provision 2 times within 6 months; failure on 2+ occasions in 24 months to offer approved goods/services; violate health/safety/sanitation law; failure to sign approved premises lease within 6 months; failure to conduct Soft Opening within 13 months; default under lease; failure to comply with non-compete covenants; failure to cure default under other agreements. |
| Non-Compete Period | During the Term and 2 years after the expiration/termination |
| Non-Compete Details | During the Term: neither franchisee nor restricted parties (owners, guarantors, immediate family) involved in any Competing Business (fitness/exercise business, marketing/consulting business, business offering similar products/services, or franchising/licensing such businesses). No diversion of customers. After Term: 2 years, same restrictions, but geographic scope limited to Authorized Location and within 10-mile radius of Authorized Location or any other Studio. No solicitation of former Studio customers or contact with suppliers for competitive business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | We recommend, but do not require, that you (or, if you are an entity, the Operating Principal) personally supervise the Studio. You may appoint a Designated Manager to manage daily operations. Your Studio must, at all times, be managed by and staffed with at least one individual who has successfully completed the Owner/Operator Module or, if applicable, the Designated Manager Module, of our Initial Training Program. |
| Required Suppliers | Pre-Sales and Soft Opening Retail Inventory Kit; Fitness Equipment & Initial FF&E Package and certain other equipment/supplies; insurance coverage; shipping and installation services; training materials (Webinar Training associated with the Flexologist Training Program); POS System and then-current software. |
| Supply Restrictions | You must purchase all or nearly all of the inventory or supplies that are necessary to operate your business from the franchisor, its affiliates, or suppliers that the franchisor designates, at prices the franchisor or they set. These prices may be higher than similar items you could obtain elsewhere for the same or similar goods. This may reduce the anticipated profit of your franchise business. |
| Franchisor Revenue from Suppliers | In fiscal year 2024, the franchisor did not receive revenue from the sale of goods and services to franchisees, but its Predecessor received $9,246,461. Additionally, the franchisor received $1,954,815 in allowances, rebates, or other consideration from vendors (5.6% of total revenue), and its Predecessor received $1,924,267. Xponential, the parent company, received $6,837,252 in allowances, rebates, or other consideration from vendors for purchases by franchisees of all Xponential Brands. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or obligation. |
Stretch Lab Franchise Earnings — Item 19
Average Revenue
$556K
Median Revenue
$536K
Revenue Range
$12K – $1.5M
Sample Size
417 units
Past financial performance does not guarantee future results. Individual results will vary.
Stretch Lab Litigation & Risk Flags
8 Pending Actions ListedReview the full FDD for details on pending litigation.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Stretch Lab System Growth
Total Units
485
Franchised
485
Company-Owned
0
Stretch Lab currently operates 485 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 135 | 0 | 283 |
| 2023 | 148 | 3 | 428 |
| 2024 | 71 | 14 | 485 |
Transfers: 44 | Closures: 14
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$205K
Net Income
$150K
Total Assets
$150K
Audited by Deloitte & Touche LLP for year ending December 31.
Stretch Lab Franchise — FAQ
The total investment to open a Stretch Lab franchise ranges from $269,019 to $610,224, per their Franchise Disclosure Document. This includes the initial franchise fee of $65,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Stretch Lab charges a royalty fee of 8% of Gross Sales of gross sales, plus a Currently, 2% of Gross Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Stretch Lab Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Stretch Lab to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Stretch Lab franchise owners report average revenue of $556K and median revenue of $536K. This is based on a sample of 417 units. Past performance does not guarantee future results.
Stretch Lab has been franchising since 2023. The FDD shows an investment range of $269,019-$610,224, a 8% of Gross Sales royalty, and includes an Item 19 earnings disclosure. There are 8 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $65,000 and the total investment ranges from $269,019 to $610,224 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Stretch Lab and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Stretch Lab or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com