Stretch LabFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Stretch Lab franchise requires a total initial investment of $269K – $610K, including a $65K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $556K[2]. SBA 7(a) loans show a 1.6% charge-off rate across 126 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $269K – $610K
- 54th pct Health & Fitn…
- Avg gross sales
- $556K
- 32nd pct Health & Fitn…
- Royalty
- 8.0%
- 55th pct Health & Fitn…
- Units
- 485
- 96th pct Health & Fitn…
- SBA default
- 1.6%
- system-wide median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = >15% above Health & Fitness 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 1.6% of 126 SBA loans charged off, well below the 16% franchise average.
13 legal cases disclosed in the FDD. Read Item 3 before signing.
Bottom line
- Total investment $269K – $610K including a $65K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $556K/year (median $536K).
- Verdict A (Top Quintile) with a risk score of 15/100. SBA loan charge-off rate of 1.6% across 126 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 13 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Stretch Lab Franchise SPV, LLC
- Parent company
- XPOF Assetco, LLC
- Incorporated in
- DE
- HQ
- 17877 Von Karman Ave., Suite 100, Irvine, California 92614
- Auditor
- Deloitte & Touche LLP
- Audited financials
- Franchisor revenue
- $521K
- vs $204.6M prior year
Overview
About
Stretch Lab franchisees operate boutique fitness studios offering assisted stretching and mobility services, primarily one-on-one and small group sessions led by trained practitioners. Day-to-day operations include managing front-desk scheduling, overseeing practitioner staff, maintaining studio facilities, and driving member retention through classes and retail offerings. Revenue streams include membership packages, drop-in classes, and ancillary services.
- CEO
- Mark King
- Headquarters
- CA
- Founded
- 2012
- FDD year
- 2025
- States available
- 45
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $65K | $65K |
| Working capital (3–6 mo) | $33K | $86K |
| Equipment, build-out, other | $171K | $459K |
| Total initial investment | $269K | $610K |
Source: Stretch Lab 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
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
$156K
28.0% margin
Unlevered ROIC
31%
EBITDA / total invested capital
Payback
3.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $269K – $610K
- Near category avg vs category
- Liquid capital req'd
- $33K – $86K
- Below avg, review vs category
- Franchise fee
- $45K – $65K
- Below avg, review vs category
- Royalty
- 8.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $675 |
| Transfer fee | $10K |
| Renewal fee | $10K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $556K
- Per unit, per year
- Median gross sales
- $536K
- Item 19 type
- gross_sales
- Sample size
- 417 units
- vs category median 11 · large
- Range (low → high)
- $12K→$1.5M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Stretch Lab Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 485
- Opened
- 71
- Last reporting year
- Closed
- 12
- Turnover rate
- 2.5%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +13.3%
- Net unit change last year
- 3-yr CAGR
- +71.4%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 44
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 9 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
- 126
- Loan volume
- $29.8M
- Median loan
- $257K
- 50th percentile
- Charge-off rate
- 1.6%
- 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)
- 93.1%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 44
- Defaults
- 2
Vintage analysis
Stretch Lab charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Stretch Lab's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 9-year lending trend
Instant access. No subscription.
With a 1.6% charge-off rate across 126 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Stretch Lab operates under a parent company in bankruptcy with extensive litigation alleging franchise law violations; the absence of net income disclosure and modest unit growth create opacity around actual franchisee profitability and sustainability.
Audited financials (Item 21)
Yes · Deloitte & Touche LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 15 / 100 rating
- 01MINORParent company (Xponential Fitness) facing multiple securities class action lawsuits and regulatory scrutiny, creating systemic risk across all affiliate brands
- 02HIGHExtensive litigation from former franchisees across affiliate brands alleging franchise law violations and fraudulent inducement — suggests potential systemic issues in franchisor practices
- 03MEDNo Item 19 (average net income) disclosed despite $556,263 average revenue — inability or unwillingness to demonstrate profitability is a major transparency red flag
- 04MINOR8% royalty on gross sales with 10-year term creates high fixed costs regardless of profitability; lack of net income data makes ROI calculation impossible
- 05HIGHParent company filed for Chapter 11 bankruptcy protection (going concern = False) — indicates severe financial distress and potential impact on franchisee support, marketing, and technology
- 06MINOR13.3% YoY unit growth appears modest for a wellness concept; growth rate masks whether expansion is driven by new franchisees or attrition replacement
- 07MINORMultiple pending lawsuits by franchisees from affiliated brands (Pure Barre, AKT, Yoga Six, Row House, CycleBar, BFT) suggest pattern of franchisor-franchisee disputes and potential legal precedent against the parent company
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 | Designated Territory |
| Protected territory | Yes |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | California |
| Litigation count | 13 |
Items 10, 11
Training & Operations
- Classroom training
- 61 hrs
- On-the-job training
- 32 hrs
- POS system
- ClubReady
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: ClubReady
Item 20 · call current owners
Franchisee Contacts
79 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Stretch Lab · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Stretch Lab franchise?
The total investment to open a Stretch Lab franchise ranges from $269K – $610K, with an initial franchise fee of $65K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Stretch Lab franchise owners earn?
According to Item 19 of the Stretch Lab FDD, the average gross sales per unit is $556K. The median is $536K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Stretch Lab's franchise failure rate?
Based on SBA 7(a) loan data, Stretch Lab has a charge-off rate of 1.6% across 126 loans, meaning 1.6% 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 Stretch Lab franchise locations are there?
As of their most recent FDD filing, Stretch Lab has 485 total units in the United States, including 283 franchised units and 0 company-owned units. 71 new units were opened in the latest reporting year.
Is Stretch Lab a good franchise to buy?
FranchiseVerdict rates Stretch Lab as a A-grade franchise with a risk score of 15 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.