Stretchmed Franchise Cost, Revenue & Review 2026
- Investment
- $118K – $167K
- Disclosed sales
- $519K
- gross sales, not profit
- SBA charge-off
- 0.0%
- on 12 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
StretchMed is a wellness franchise offering one-on-one assisted stretching and mobility sessions with trained practitioners. Franchisees run the studios, managing stretch practitioners, appointments, and memberships.
FranchiseVerdict summary · 2026
A STRETCHMED franchise requires a total initial investment of $118K – $167K, including a $50K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $519K[2]. SBA 7(a) loans show a 0.0% charge-off rate across 12 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $118K – $167K
- 22nd pct Health & Fitn…
- Avg gross sales
- $519K
- Outlet subset22nd pct Health & Fitn…
- Royalty
- 6.0%
- 13th pct Health & Fitn…
- Units
- 31
- 62nd pct Health & Fitn…
- SBA charge-off
- 0.0%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Health & Fitness · color = vs category peers
Green = favorable by >10% vs Health & Fitness median · 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 $118K – $167K including a $50K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $519K/year (median $546K) (reported for a subset of outlets rather than the whole system), with an estimated 42% cash-on-cash return (based on Average Gross Profit). Note: this is gross profit, not take-home income.
- RISKVerdict A (Strongest tier), verdict score 75/100 (higher is better). SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +14 franchised outlets in the latest year (14 opened, 0 closed); 26 signed but not yet open (Item 20).
- GROWTHSystem growing at 181.8% CAGR over 3 years with 31 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- StretchMed Franchise, LLC
- Predecessor
- STRETCHMED Franchise, Inc. (Massachusetts corporation, sold assets to current franchisor May 14, 2021)
- Prior franchisor entity
- CEO title
- Founder, President & Director of Franchise Development
- Brian Cook
- Incorporated in
- Puerto Rico
- HQ
- 954 Avenida Ponce De Leon, Suite 205-PMB# 10076, San Juan, Puerto Rico, 00907
- Auditor
- Gwynn CPAs
- Audited financials
- Franchisor revenue
- $1.3M
- vs $685K prior year
Affiliated brands
- San Juan Stretch
- Get In Shape Franchise
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Brian Cook
- Headquarters
- Puerto Rico
- Founded
- 2020
- FDD year
- 2025
- States available
- 11
Can you afford it, and what does the money buy?
Entry cost runs 64% below the typical health & fitness franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown23 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Real Estate/Rent (First month's rent plus one month Security Deposit)not refundable | $4K | $5K | |
| Utility Depositsnot refundable | $0 | $400 | |
| Leasehold Improvementsnot refundable | $0 | $26K | |
| Computer System and Relatednot refundable | $4K | $4K | |
| Sound & Camera Systemnot refundable | $398 | $398 | |
| Store Furnishings and Miscellaneous Studio Itemsnot refundable | $8K | $8K | |
| Stretching Tables/Equipmentnot refundable | $8K | $8K | |
| Architectural Plansnot refundable | $0 | $3K | |
| Office Furniture and Supplies, Promotional Products & Employee Apparelnot refundable | $8K | $8K | |
| Grand Opening Marketingnot refundable | $5K | $5K | |
| Presale Advertisingnot refundable | $10K | $10K | |
| Training Expenses (out-of-pocket costs for 2 people)not refundable | $0 | $4K | |
| Prepaid Insurance 3 monthsnot refundable | $400 | $1K | |
| Additional Funds 3 monthsnot refundable | $10K | $20K | |
| Interior Signagenot refundable | $765 | $765 | |
| Inventorynot refundable | $5K | $5K | |
| First Aid Equipment and Trainingnot refundable | $1K | $1K | |
| Local, State or Federal Licenses and Permitsnot refundable | $0 | $1K | |
| Certified Stretch Therapist (CST) Certification Feenot refundable | $990 | $990 | |
| Total initial investment | $118K | $167K |
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
- $118K – $167K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $20K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Middle of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 2.4 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $550 |
| Transfer fee | $25K |
| Renewal fee | $25K |
| Inventory (initial) | $5K – $5K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales run 9% above the health & fitness norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for STRETCHMED until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$158K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
FDD-reported earnings
The FDD reports $110K as Average Gross Profit. This is a disclosed figure, not our estimate — we publish no modelled profit for STRETCHMED.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one STRETCHMED unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $519K
- Per unit, per year
- Median gross sales
- $546K
- Avg average gross profit
- $110K
- Reported as Average Gross Profit in FDD Item 19
- Cash-on-cash
- 42.4%
- Based on Average Gross Profit / investment midpoint
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 3 outlets
- vs category median 11 · small
- Range (low → high)
- $400K→$611KCited, not corroborated — printed on page 72 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 173 Health & Fitness 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 $519K/year in gross sales. Median ($546K) exceeds the average — distribution is bottom-heavy but most units perform well. Revenue-to-investment ratio: 3.6x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.0% (near the Health & Fitness median).
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence. Sample size of 3 outlets — treat as directional only.
Operator retention
System expanding at 181.8% CAGR over 3 years across 31 units — operators are staying and new ones are joining.
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 Health & Fitness medians
How Stretchmed Compares
Category median of published Health & Fitness brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- Opened
- 14
- Last reporting year
- Closed
- 0
- Turnover rate
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +181.8%
- Net unit change over 3 years
- 3-yr CAGR
- +181.8%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Signed, not yet open
- 26
- 0.84 per open outlet · Item 20 Table 5
- Projected new
- 50
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 12 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.
Where the owners are · Item 20 owner list
29 current owners across 9 states; 3 former (terminated, transferred or not renewed) listed separately.
- MA 12
- FL 6
- CA 4
- CT 2
- AR 1
- IN 1
- MD 1
- NJ 1
- NV 1
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 12
- Loan volume
- $2.0M
- Median loan
- $181K
- 50th percentile
- Charge-off rate
- 0.0%
- on 12 loans · 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
- 0.0%
- Loans approved 2021+
- Active lenders
- 9
- Defaults
- 0
- Typical loan rate
- 8.6%
- avg rate to borrowers
- Franchised industry avg
- 15.8%
- brand beats franchise avg ↓
- Jobs supported
- 53
- 2.6 per loan
- Lender concentration
- 17%
- top lender's share
Borrower mix: 92% went to startups / new businesses, 8% to established operators
Franchise vs independent — in fitness and recreational sports centers, franchised businesses charge off at 15.8% vs 18.2% for independents — franchising is associated with 13% lower SBA default risk in this category.
Top lenders financing Stretchmed franchisees
Showing 3 of 9 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Stretchmed from SBA 7(a) FOIA data.
- Principal loss rate
- 0.0%
- Avg SBA guarantee
- 70%
- Avg interest rate
- 8.58%
- Lender concentration
- 16.7%
- Job velocity
- 2.6 per $100K
- NAICS benchmark
- 12.5%
- NAICS 713940
- Jobs supported
- 53
Top SBA lendersTop lender holds 17% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Avidia Bank | 2 | $388K | N/A |
| 2 | The Huntington National Bank | 2 | $218K | N/A |
| 3 | Zions Bank, A Division of | 2 | $180K | N/A |
| 4 | KeyBank National Association | 1 | $229K | N/A |
| 5 | ACC Capital | 1 | $200K | N/A |
| 6 | Webster Bank National Association | 1 | $145K | 0.0% |
| 7 | Southern Bancorp Bank | 1 | $175K | N/A |
| 8 | Merchants Bank of Indiana | 1 | $300K | N/A |
| 9 | Newburyport Five Cents Savings Bank | 1 | $188K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| MAMassachusetts | 4 | 0 | 0.0% |
| NVNevada | 2 | 0 | -- |
| ARArkansas | 1 | 0 | -- |
| CACalifornia | 1 | 0 | -- |
| CTConnecticut | 1 | 0 | -- |
| GAGeorgia | 1 | 0 | -- |
| INIndiana | 1 | 0 | -- |
| OHOhio | 1 | 0 | -- |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
With a 0.0% charge-off rate across 12 loans, banks have historically viewed this brand favorably for lending.
What could kill this investment?
SBA loans charge off at 0.0% — 100% below the 16.0% national norm, i.e. lower 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
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation disclosed. Two administrative actions disclosed: California denied franchise registration application due to CPA licensing issue (2023, resubmitted); Washington consent order regarding late amendment of registration application tied to same CPA issue.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Gwynn CPAs
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: No
- Restricted to system-approved products: No
- Can negotiate own supplier terms: No
Score breakdown · what drove the 75 / 100 verdict
- 01MINORTwo administrative registration actions (CPA licensing issue), no true Item 3 litigation
- 02MINORPositive net income $286,665, net worth $184,030
- 03MINORStrong growth +181.8%, 31 units
- 04MEDAudited, Item 19 disclosed, no going-concern or bankruptcy
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Exclusive territory |
| Protected territory | Yes |
| Exclusive territoryℹ | Yes |
| Territory sizeℹ | Zip Code/Radius/Map |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 8 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Mandatory arbitration | Yes |
| Arbitration location | Puerto Rico |
| Jury trial waiver | Yes |
| Governing law | Puerto Rico |
| Litigation count | 2 |
View Item 3 litigation summary
No litigation disclosed. Two administrative actions disclosed: California denied franchise registration application due to CPA licensing issue (2023, resubmitted); Washington consent order regarding late amendment of registration application tied to same CPA issue.
Items 10, 11
Training & Operations
- Classroom training
- 152 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Ongoing training
- Required
- Site selection
- franchisor approves proposed sites; franchisee locates, franchisor does not conduct site selection activities
- Franchisor financing
- Not offered
- Item 10
- POS system
- Momence
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Momence
Item 20 · call current owners
Franchisee Contacts
32 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a STRETCHMED franchise?
The total investment to open a STRETCHMED franchise ranges from $118K – $167K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do STRETCHMED franchise owners earn?
According to Item 19 of the STRETCHMED FDD, the average gross sales per unit is $519K. The median is $546K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns STRETCHMED?
STRETCHMED is franchised by StretchMed Franchise, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the STRETCHMED 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 STRETCHMED FDD and qualifies whose outlets they describe.
What is STRETCHMED's franchise failure rate?
Based on SBA 7(a) loan data, STRETCHMED has a charge-off rate of 0.0% across 12 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 STRETCHMED franchise locations are there?
As of their most recent FDD filing, STRETCHMED has 31 total units in the United States, including 31 franchised units and 0 company-owned units. 14 new units were opened in the latest reporting year.
Is STRETCHMED a good franchise to buy?
FranchiseVerdict rates STRETCHMED as a A-grade franchise with a verdict score of 75 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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 STRETCHMED, you can request corrections or provide updated information.
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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.