Relax The BackFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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 0.0% charge-off rate across 10 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $195K – $420K
- 20th pct Retail
- Avg gross sales
- $911K
- 13th pct Retail
- Royalty
- N/A
- Units
- 79
- 23rd pct Retail
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Retail · color = vs category peers
Green = >15% above Retail avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Only 0.0% of 10 SBA loans charged off, well below the 16% franchise average.
Franchising since 2001. Systems this mature have refined operations and brand recognition.
Franchised units fell from 81 to 77 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $195K – $420K including a $30K franchise fee.
- Average unit revenue of $911K/year (median $831K), with an estimated 14% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 39/100. SBA loan charge-off rate of 0.0% across 10 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Relax The Back Corporation
- Parent company
- Interactive Health, Inc.
- Incorporated in
- DE
- 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
Relax the Back operates retail showrooms selling ergonomic furniture, mattresses, and wellness products (adjustable beds, massage chairs, lumbar support items). Franchisees manage in-store sales, customer consultations, inventory, and local marketing. The business model relies on foot traffic, repeat customers, and consultative selling in a competitive home furnishings market.
- CEO
- David Wood
- Headquarters
- CA
- Founded
- 2000
- FDD year
- 2024
- States available
- 25
FDD Item 7 · 2024 filing · 13 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.
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
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $195K – $420K
- Better than avg vs category
- Liquid capital req'd
- $30K – $60K
- Better than avg vs category
- Franchise fee
- $5K – $30K
- Better than avg 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
- Payback period
- 7.3 yrs
- From FDD / Item 19
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 |
Financial Performance
- Avg gross sales
- $911K
- Per unit, per year
- Median gross sales
- $831K
- Avg p&l bottom line
- $42K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 13.6%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Actual
- Sample size
- 76 units
- vs category median 49
- Range (low → high)
- $428K→$2.6M
- Cohort dispersion (min → max)
- Quartile band
- $556K→$1.4M
- Bottom 25% → top 25%
- Transparency
- 10 / 5
- vs category median 2 / 5 · above
Compared against 304 Retail brands
vs Retail averages
How Relax The Back Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 79
- Opened
- 0
- Last reporting year
- Closed
- 2
- Turnover rate
- 2.5%
- Company-owned
- 2
- Corporate units in the system
- % franchised
- 98%
- vs corporate-owned
- Net growth (yr3)
- -2.5%
- Net unit change last year
- 3-yr CAGR
- -4.9%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- 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
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $4.2M
- Median loan
- $252K
- 50th percentile
- Charge-off rate
- 0.0%
- 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)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
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.
With a 0.0% charge-off rate across 10 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining unit growth, thin profit margins, and lack of financial transparency indicate a mature/contracting system where success depends heavily on individual execution and location quality.
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 39 / 100 rating
- 01MINORUnit count declining 2.5% YoY suggests weakening system momentum and potential saturation
- 02MINORNet income of $41,934 on $911,108 revenue (4.6% net margin) is thin, leaving minimal buffer for underperformance
- 03MINORHigh royalty floor of $1,875/month ($22,500 annually) creates breakeven pressure for lower-volume locations
- 04MINORNo Item 19 financial performance representation limits ability to validate average unit economics
- 05MINORFranchise fee of $29,500 represents 15% of total investment but provides no guarantee of revenue achievement
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 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
86 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 RELAX THE BACK's franchise failure rate?
Based on SBA 7(a) loan data, RELAX THE BACK has a charge-off rate of 0.0% across 10 loans, meaning 0.0% 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 81 franchised units and 2 company-owned units.
Is RELAX THE BACK a good franchise to buy?
FranchiseVerdict rates RELAX THE BACK as a A-grade franchise with a risk score of 39 out of 100, 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.
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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.