Bottom line
- Total investment $134K – $241K including a $60K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $393K/year (median $387K).
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 70 loans (below the industry average).
- System growing at 115.7% CAGR over 3 years with 330 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
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 Stretch Zone unit return on the cash you put in?
Unlevered ROIC · per unit
43%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Stretch Zone units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $5.9M purchase
Total debt
$4.7M
SBA $2.9M + senior + seller note
Overview
About
Franchisees operate Stretch Zone locations offering one-on-one assisted stretching services to improve flexibility and mobility. Day-to-day operations include conducting 25-30 minute stretch sessions, managing client scheduling/billing, maintaining facility cleanliness, and handling staff management. The model relies on repeat clientele and membership revenue rather than transactional foot traffic.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 10 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 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.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Rapid expansion, prior litigation, and absent financial disclosures (Item 19 and net income) create moderate-to-high uncertainty around unit economics and corporate stability despite reasonable investment size and protected territories.
Score breakdown · what drove the 42 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — cannot validate $392,549 avg revenue claim or unit economics
- 02HIGHSignificant litigation history: $5.25M buyout settlement in 2020 suggests material governance/ownership disputes at corporate level
- 03MINORHigh unit growth (37.5% YoY) may indicate aggressive recruitment masking underlying unit quality issues or market saturation concerns
- 04MINORRoyalty structure incentivizes corporate growth over franchisee profitability; minimum $900/mo ($10,800/yr) may not cover service costs at low-revenue locations
- 05MEDNet income not disclosed — cannot assess actual franchisee profit margins; combined with missing Item 19, suggests weak financial transparency
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
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
97 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Stretch Zone · FDD (2024) PDF