StretchmedFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A STRETCHMED franchise requires a total initial investment of $118K – $253K, 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]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $118K – $253K
- 22nd pct Health & Fitn…
- Avg gross sales
- $519K
- 28th pct Health & Fitn…
- Royalty
- 6.0%
- 8th pct Health & Fitn…
- Units
- 31
- 64th pct Health & Fitn…
- SBA default
- 0.0%
- 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 0.0% of 12 SBA loans charged off, well below the 16% franchise average.
The system grew 82% year-over-year. Fast growth means demand, but can strain support.
59% cash-on-cash return (based on Gross Margin). Above the 20% threshold most investors target.
Bottom line
- Total investment $118K – $253K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $519K/year (median $546K), with an estimated 59% cash-on-cash return (based on Gross Margin). Note: this is gross profit, not take-home income.
- Verdict A (Top Quintile) with a risk score of 10/100. SBA loan charge-off rate of 0.0% across 12 loans (well below the franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System growing at 181.8% CAGR over 3 years with 31 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- StretchMed Franchise, LLC
- 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
- $685K
- vs $1.3M prior year
Affiliated brands
- San Juan Stretch
- Get In Shape Franchise
Other brands the franchisor or its parent operates (Item 1).
Overview
About
STRETCHMED franchisees operate physical wellness facilities offering assisted stretching, mobility services, and recovery therapies to clients. Day-to-day operations involve scheduling client sessions, delivering hands-on stretching treatments, managing staff, maintaining equipment, and driving local marketing to build recurring clientele. Revenue depends heavily on appointment density, pricing per session, and client retention rates.
- CEO
- Brian Cook
- Founded
- 2020
- FDD year
- 2025
- States available
- 11
FDD Item 7 · 2025 filing · 23 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.
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
30.0% margin
Unlevered ROIC
72%
EBITDA / total invested capital
Payback
17 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $118K – $253K
- Better than avg vs category
- Liquid capital req'd
- $10K – $50K
- Better than avg vs category
- Franchise fee
- $50K – $50K
- Near category avg vs category
- Royalty
- 6.0%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
- Payback period
- 1.7 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 |
Financial Performance
- Avg gross sales
- $519K
- Per unit, per year
- Median gross sales
- $546K
- Avg gross margin
- $110K
- Reported as Gross Margin in FDD Item 19
- Cash-on-cash
- 59.2%
- Based on Gross Margin / investment midpoint
- Item 19 type
- Average/Median/Highest/Lowest
- Sample size
- 3 units
- vs category median 11 · small
- Range (low → high)
- $400K→$611K
- Cohort dispersion (min → max)
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 180 Health & Fitness brands
vs Health & Fitness averages
How Stretchmed Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 31
- Opened
- 14
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- +82.4%
- Net unit change last year
- 3-yr CAGR
- +181.8%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
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.
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%
- 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
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Stretchmed's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 9 lenders with concentration factor
- Per-state charge-off rates across 8 states
- Startup risk premium and job creation velocity
- 6-year lending trend
Instant access. No subscription.
With a 0.0% charge-off rate across 12 loans, banks have historically viewed this brand favorably for lending.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Early-stage franchise with aggressive growth, regulatory scrutiny, and unverified financial claims presents moderate-to-high risk despite solid unit economics.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Largest disclosed settlement: $3,000
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
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 10 / 100 rating
- 01MINORTwo administrative actions in 2023 (CA/WA) involving auditor licensing and disclosure amendments signal potential compliance or transparency issues
- 02MINORHigh franchise fee ($49,500) relative to average net income ($110,021) means 45% of first-year profit goes to franchisor before operations are proven
- 03MINORRapid unit growth (82.4% YoY) on small base (31 units) suggests aggressive expansion that may outpace operational support infrastructure
- 04MINORNo Item 19 (Financial Performance Representations) provided — cannot verify that average revenue/net income figures are typical or achievable for new franchisees
- 05HIGHLitigation in 2023 involving state regulators raises questions about franchisor compliance rigor and disclosure transparency to franchisees
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 | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Zip Code/Radius/Map |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Puerto Rico |
| Litigation count | 2 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 152 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- 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
FDD download
STRETCHMED · FDD (2025) PDF
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 – $253K, 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. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 11 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 risk score of 10 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.