Bottom line
- Total investment $97K – $278K including a $55K franchise fee, 7.0% ongoing royalty.
- Average unit revenue of $76K/year (median $76K). Estimated payback in 2.2 years.
- Rated STRONG with a risk score of 52/100. SBA loan default rate of 0.0% across 10 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
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 The Vital Stretch unit return on the cash you put in?
Unlevered ROIC · per unit
5%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 The Vital Stretch units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$106K
on $530K purchase
Total debt
$424K
SBA $0.3M + senior + seller note
Overview
About
The Vital Stretch operates stretch/flexibility-based wellness studios offering assisted stretching services, personal training, and mobility coaching to clients. Franchisees manage studio operations including staff scheduling, client acquisition, class/session delivery, and facility maintenance in their protected territories.
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 12 · 3 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
3
states with franchisees (per FDD Item 12)
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
Very small system with critical financial data inconsistencies and unclear growth viability makes this a speculative investment requiring extensive validation.
Score breakdown · what drove the 52 / 100 rating
- 01MINOROnly 5 units system-wide with unknown/stagnant growth trajectory raises scalability concerns
- 02MINORNet income ($84,295) significantly exceeds reported average revenue ($75,724) — mathematically impossible and suggests unreliable financial data or accounting issues
- 03MINORHigh franchise fee ($54,500) represents 56% of average annual net income, creating substantial payback period risk
- 04MINOR7% royalty on gross revenue lacks transparency on what support/services justify this ongoing cost for micro-system
- 05MINORItem 19 financial performance representations appear unreliable given the revenue/income discrepancy, limiting ability to validate ROI claims
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
2 numbers
One-time purchase · CSV download · Validation questions included
FDD download
The Vital Stretch · FDD (2025) PDF