Relax The Back Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Relax The Back is a retail franchise selling ergonomic and wellness products, adjustable beds, massage chairs, recliners, and back-support items. Franchisees run showrooms with consultative selling and customer education.
FranchiseVerdict summary · 2026
A RELAX THE BACK franchise requires a total initial investment of $195K – $420K, including a $30K franchise fee. Per the 2024 FDD, average unit revenue was $911K[2]. SBA 7(a) loans show a 21.7% charge-off rate across 57 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2024 FDD issuance
Overview
- Investment
- $195K – $420K
- 22nd pct Retail
- Avg gross sales
- $911K
- 10th pct Retail
- Royalty
- N/A
- Units
- 79
- 26th pct Retail
- SBA charge-off
- 21.7%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Retail · color = vs category peers
Green = favorable by >10% vs Retail avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $195K – $420K including a $30K franchise fee.
- RETURNSAverage unit revenue of $911K/year (median $831K).
- RISKVerdict B (Above average), verdict score 56/100 (higher is better). SBA loan charge-off rate of 21.7% across 57 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Relax the Back Corporation
- Parent company
- Interactive Health, Inc. (IH)
- CEO title
- Director of RTB; Chief Executive Officer of IH
- David Wood
- Incorporated in
- Delaware
- HQ
- 4600 E. Conant, Long Beach, CA 90808
- Auditor
- Moss Adams LLP
- Audited financials
- Franchisor revenue
- $8.8M
- vs $8.2M prior year
Overview
About
- CEO
- David Wood
- Headquarters
- CA
- Founded
- 2000
- FDD year
- 2024
- States available
- 25
Can you afford it, and what does the money buy?
Entry cost runs 26% below the typical retail franchise.
Source: FDD 2024 · Items 5–7
Full Item 7 breakdown13 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $5K | $30K | |
| Real Property Improvementsnot refundable | $0 | $75K | |
| Rent/Security Deposit | $5K | $20K | |
| Equipment, Fixtures, & Suppliesnot refundable | $33K | $55K | |
| Initial Inventorynot refundable | $22K | $22K | |
| Other Inventorynot refundable | $75K | $109K | |
| Training Related Expensesnot refundable | $2K | $8K | |
| Grand Opening Expensesnot refundable | $10K | $10K | |
| Insurancenot refundable | $3K | $5K | |
| Exterior Signsnot refundable | $7K | $20K | |
| Computer Hardware & Softwarenot refundable | $3K | $3K | |
| Visual Merchandising Feenot refundable | $0 | $4K | |
| 6 months' Additional Fundsnot refundable | $30K | $60K | |
| Total initial investment | $195K | $420K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $195K – $420K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $60K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- the greater of 5% or $1,875
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 7.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $8K |
| Renewal fee | $12K |
| Total fee load | 7.0% of rev |
What do units actually make?
Average unit sales land near the retail norm.
Source: FDD 2024 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$64K
7.0% margin
Unlevered ROIC
18%
EBITDA / total invested capital
Payback
5.5 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one RELAX THE BACK unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
18%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2024 FDD
Financial Performance
- Avg gross sales
- $911K
- Per unit, per year
- Median gross sales
- $831K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Actual
- Sample size
- 76 outlets
- vs category median 47
- Range (low → high)
- $428K→$2.6M
- Cohort dispersion (min → max)
- Quartile band
- $556K→$1.4M
- Bottom 25% → top 25%
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2024
- Disclosed in the 2024 filing, covering 2023
- Transparency
- 10 / 10
- vs category median 3 / 10 · above
Compared against 278 Retail brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $911K/year in gross sales. Revenue-to-investment ratio: 3.0x.
Fee burden
Total ongoing fee load of 7.0% — below the Retail average of 8.9%.
Disclosure
Transparency score 10/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Retail averages
How Relax The Back Compares
Is the system healthy?
Source: FDD 2024 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 79
- Opened
- 0
- Last reporting year
- Closed
- 2
- Turnover rate
- 10.4%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 97%
- vs corporate-owned
3-year detail · Item 20
- Closed (3yr)
- 8
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 3
- Transfers (3yr)
- 4
- Reacquired (3yr)
- 0
- Franchisor bought back
- Transfer rate
- 4.8%
- Owners selling to other franchisees
- Continuity rate
- 97.5%
- Units that stayed open
- Termination rate
- 3.6%
- Franchisor-initiated terminations
- Ceased ops
- 2.4%
- Units that stopped operating
Last reporting year only, multi-year history not disclosed in this brand's FDD.
Item 12 · 25 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
25
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 57
- Loan volume
- $11.7M
- Median loan
- $252K
- 50th percentile
- Charge-off rate
- 21.7%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 78.3%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 10
- Typical loan rate
- 6.2%
- avg rate to borrowers
- Franchised industry avg
- 16.3%
- brand above franchise avg ↑
- Jobs supported
- 84
- 2.0 per loan
- Lender concentration
- 40%
- top lender's share
Borrower mix: 25% went to startups / new businesses, 75% to established operators
Franchise vs independent — in all other health and personal care stores, franchised businesses charge off at 16.3% vs 21.4% for independents — franchising is associated with 24% lower SBA default risk in this category.
Top lenders financing Relax The Back franchisees
Showing 3 of 4 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Relax The Back's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 5 states
- Startup risk premium and job creation velocity
- 7-year lending trend
Instant access. No subscription.
A 21.7% charge-off rate means roughly 1 in 5 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 21.7% — 35% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Established (2001) 79-unit retail franchisor with positive net worth ($574,192), revenue $8.2M and net income $302,682, all audited. No litigation, no bankruptcy, no going-concern, and Item 19 disclosed. Clean profile.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $500,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Moss Adams LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 56 / 100 verdict
- 01MINORNo litigation, no bankruptcy, no going-concern
- 02MINORPositive net worth $574,192, net income $302,682
- 03MEDAudited financials, Item 19 disclosed
- 04MINOREstablished 79-unit system
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 7.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2024 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Territory sizeℹ | 3 mile radius |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 3 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Delaware |
| Litigation count | 0 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 35 hrs
- On-the-job training
- 95 hrs
- Training location
- On-site and franchisor facility
- Franchisor financing
- Offered
- Item 10
- POS system
- QuickBooks and a designated point-of-sale system
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: QuickBooks and a designated point-of-sale system
Item 20 · call current owners
Franchisee Contacts
80 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
RELAX THE BACK · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a RELAX THE BACK franchise?
The total investment to open a RELAX THE BACK franchise ranges from $195K – $420K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do RELAX THE BACK franchise owners earn?
According to Item 19 of the RELAX THE BACK FDD, the average gross sales per unit is $911K. The median is $831K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the RELAX THE BACK FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the RELAX THE BACK FDD and qualifies whose outlets they describe.
What is RELAX THE BACK's franchise failure rate?
Based on SBA 7(a) loan data, RELAX THE BACK has a charge-off rate of 21.7% across 57 loans, meaning 21.7% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many RELAX THE BACK franchise locations are there?
As of their most recent FDD filing, RELAX THE BACK has 79 total units in the United States, including 77 franchised units and 2 company-owned units.
Is RELAX THE BACK a good franchise to buy?
FranchiseVerdict rates RELAX THE BACK as a B-grade franchise with a verdict score of 56 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
Are you the franchisor?
If you represent RELAX THE BACK, you can request corrections or provide updated information.
Other Retail franchises
Compare similar franchise opportunities in the Retail category
Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.