FranchiseVerdict
RELAX THE BACK logo
FV-02133·STRONGExcellent95

Relax The Back

RetailFranchising since 2001Website
Investment
$195K – $420K
47th pct Retail
Avg revenue
$911K
31st pct Retail
Royalty
Units
79
56th pct Retail
SBA default
0.0%
vs <3% typical

Bottom line

  • Total investment $195K – $420K including a $30K franchise fee.
  • Average unit revenue of $911K/year (median $831K). Estimated payback in 7.3 years.
  • Rated STRONG with a risk score of 50/100. SBA loan default rate of 0.0% across 46 loans (below the industry average).

Item 1 · who you're contracting with

The Franchisor

Legal entity
Relax The Back Corporation
Parent company
Interactive Health, Inc.
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

Yale framework · single-unit ROIC

Returns Analysis

Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.

The model · Yale framework

What would one RELAX THE BACK unit return on the cash you put in?

Revenue · per unit, per year
$
FDD Item 19 reports $911,108
Franchisor take · royalty + ad fund
Royaltytyp 68%
%
Ad fundtyp 35%
%
Operating costs · category default: retail
COGS
%
Labor
%
Rent / occupancy
%
Other operating
%
Total invested capital · what you actually put in
Initial investment
$
FDD Item 7: $195K–$420K
Working capital
$
FDD reports $30K–$60K

Unlevered ROIC · per unit

18%

Below typical band (30–60%)

0%30–60% Yale band80%

Store EBITDA · annual
$64K
EBITDA margin
7.0%
Total invested
$352K
Payback
66 mo
Unit-level only. A multi-unit portfolio gives up roughly 5–15% of this to shared services (corporate G&A) before reaching the ~10-unit break-even Yale describes.

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
Founded
2000
FDD year
2024
States available
25

Item 7 · what it costs

The Vitals

Total investment
$195K – $420K
All-in to open one unit
Liquid capital
$30K – $60K
Cash you must have on hand
Franchise fee
$30K
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 v3 / Item 19

Item 19

Financial Performance

Avg gross sales
$911K
Per unit, per year
Median gross sales
$831K
Item 19 type
Actual
Sample size
76 units
vs category median 52
Range (low → high)
$428K$2.6M
Cohort dispersion
Transparency
10 / 5
vs category median 3 / 5 · above
Revenue rank31th
vs Retail peers
Investment cost rank47th
Lower investment ranks lower (better)
Royalty rate rank73th
Lower royalty = lower percentile (better)
Unit count rank56th
vs Retail peers
Risk score rank23th
Lower risk = lower percentile (better)

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
2022
77-2
Franchised units
2023
79
Franchised units
2024
81
Franchised units

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).

AK
ME
VT
NH
MA
RI
CT
NY
NJ
PA
DE
MD
DC
WA
OR
CA
NV
ID
MT
WY
UT
CO
AZ
NM
ND
SD
NE
KS
OK
TX
MN
IA
MO
AR
LA
WI
IL
MS
TN
MI
IN
KY
AL
OH
WV
GA
VA
NC
SC
FL
HI
Registered · 4 states
Not registered

States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.

Government records

SBA Loan Data

Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.

Total loans
46
Loan volume
Avg loan
Default rate
0.0%
vs <3% typical · system-wide
5-yr default

FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17

Risk & Legal

50
Risk · 0-100
STRONG50 / 100

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.

Score breakdown · what drove the 50 / 100 rating

  1. 01MINORUnit count declining 2.5% YoY suggests weakening system momentum and potential saturation
  2. 02MINORNet income of $41,934 on $911,108 revenue (4.6% net margin) is thin, leaving minimal buffer for underperformance
  3. 03MINORHigh royalty floor of $1,875/month ($22,500 annually) creates breakeven pressure for lower-volume locations
  4. 04MINORNo Item 19 financial performance representation limits ability to validate average unit economics
  5. 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

Territory
Radius
Protected territory
Yes
Initial term
10 years
Renewal term
10 years
Online sales rights
Restricted
Franchisor can compete
Yes
Hire a manager?
Allowed
Litigation count
0
Right of first refusal
Yes
Franchisor can buy back on resale
Mandatory arbitration
Yes
Jury trial waiver
Yes
Non-compete
3 yrs
Post-termination restriction
Owner-operator
Required
Governing law
Delaware

Item 11

Training & Operations

Classroom training
35 hrs
On-the-job training
95 hrs
POS system
QuickBooks and a designated point-of-sale system
Operating tech stack

Item 20

Franchisee Contacts

Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.

Franchisee contacts

86 numbers

Locked
(330) 674-••••
CO
(404) 848-••••
CO
(817) 732-••••
CO

One-time purchase · CSV download · Validation questions included

FDD download

RELAX THE BACK · FDD (2024) PDF

Single-page checkout · instant download · CSV export of contacts available separately above