Stretchmed
Bottom line
- Total investment $118K – $253K including a $50K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $519K/year (median $546K). Estimated payback in 1.7 years.
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 24 loans (below the industry average).
- 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
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 STRETCHMED unit return on the cash you put in?
Unlevered ROIC · per unit
36%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 STRETCHMED units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$830K
on $4.2M purchase
Total debt
$3.3M
SBA $2.1M + senior + seller note
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.
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 · 13 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
Early-stage franchise with aggressive growth, regulatory scrutiny, and unverified financial claims presents moderate-to-high risk despite solid unit economics.
Score breakdown · what drove the 42 / 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
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
38 numbers
One-time purchase · CSV download · Validation questions included
FDD download
STRETCHMED · FDD (2025) PDF