StretchLabExplore the business of helping people move.

Welcome to Franchise Roundtable. Today we're exploring StretchLab and the business behind making assisted stretching part of someone's routine. Look, um, when we think of fitness franchises, you know, we usually picture these massive rooms packed with really expensive heavy machinery. Right. Or like those super intense bootcamps with the really loud music.

Exactly. So what we are analyzing today is this model where customers aren't just buying access to a room full of gym equipment. They are choosing a dedicated place. For a personal stretching service and it's delivered by highly trained instructors. It's a completely relatable reason for a customer to visit and you know they don't need extreme athletic ambitions to want that kind of maintenance.

No they don't and I mean the physical reality of the business fundamentally reflects that specific focus. How so? Well if we look at the franchise disclosure document specifically the March 2025 issuance which was amended in August 2025. We see a very defined footprint.

Okay. The investment assumptions are actually based on a dedicated studio of approximately 1,100 to 1,500 square feet. Okay. Yeah, and equipped with at least 10 stretch benches. So it's a very structured environment designed entirely around this one core offering. Just stretching.

Exactly. Which can include both private and group stretching services. Plus the instructors complete a proprietary Flexologist Training Program. Like, I like that. Right. Meaning the entire environment from the placement of those benches to the specialized team is built to execute that single specific customer experience.

So that structure will focus naturally dictates how the revenue works. I mean, if you are only offering one premium service, your entire business model has to revolve around how customers pay for and interact with that service over time. Exactly. You aren't just selling day passes to a treadmill.

No, not at all. The model does include, you know, individual services, service packages, and retail products for those who want them, but memberships are truly the economic engine of the studio. When we look at how the disclosure defines membership revenue, it specifically includes down payments, recurring dues, and membership add-ons.

So that membership structure fundamentally shifts your daily focus as an owner. Instead of waking up every single morning at zero needing to chase isolated one-off sales just to keep the lights on, you're focused on building an ongoing relationship. Exactly. The studio essentially becomes a built-in part of the customer's weekly or monthly routine.

But you know, building that routine requires a very deliberate, local effort. You don't just open the doors and expect a recurring membership base to magically appear. Right, it takes work. Yeah. The owner is explicitly responsible for local marketing to attract those members, utilizing improved materials and brand standards.

So you're out there building the business? Yes. It's an active, local business building role. And to help get that started, the franchisor provides a pre sales phase and an opening support program. Oh nice What's crucial here is that this launch program is delivered by an approved supplier Under the franchisor’s internal marketing and sales oversight.

Okay, so it's structured very it provides a framework for introducing the brand to the market Before you even open your doors. So let's translate that for our perspective owner What actually changes when your goal shifts from like getting people through the door once to becoming part of a customer's routine?

Because that feels like a fantastic topic to bring to company management during discovery, you know, to really understand how they help a new owner introduce the brand to the community. What changes is the entire timeline of your customer relationship. You aren't optimizing for a single transaction.

You are optimizing for retention. Your job is churn management. You need the customer to feel that the recurring monthly dues are continuously justified by the ongoing value they receive. Makes sense. That means your daily operations, your team's communication, and your facility's cleanliness all have to support a long-term relationship rather than a fleeting visit.

You are selling a personal service which means your people are your product. And the disclosure outlines very specific options for how an owner can structure the leadership of that team. Okay, what are the options? Well an owner can choose to personally supervise the day-to-day operations which the franchise disclosure document does actually recommend.

Or they can appoint a franchisor-approved designated manager to take on that daily floor oversight. If you are the daily supervisor, you are the one unlocking the doors, ensuring the team is prepared and verifying the facility is running smoothly every morning. And if you have a manager, if you appoint an approved manager, your role shifts toward overseeing that manager, reviewing the key business metrics, driving the local marketing strategy, and focusing on broader community awareness.

Got it. And regardless of who is actually managing the floor, the training Training requirements for the team delivering the service are quite rigorous. Very. The owner, or the entity's operating principal, must complete the initial training. Okay. Furthermore, the rule is that the studio must always be managed and staffed by someone who has completed the applicable owner, operator, or manager training.

That makes sense. And then there are the instructors themselves. Every instructor must complete the Flexologist Training Program. Right. It's also worth noting that if a manager is going to provide stretching services themselves, they absolutely have to complete that specific instructor training first, which by the way, flexologists sounds like a superhero Academy.

It really does. But it's actually a very strict proprietary training system. Let's make this concrete for the listener. Okay. Picture a prospective customer coming in to learn about assisted stretching for the first time. A trained instructor, a flexologist explains the service. Right. Meanwhile, the owner or managers in the background making sure the team is prepared, the customer feels welcomed, and the various membership options are explained clearly at the front desk.

That scene right there encapsulates the true business opportunity. Yeah. Yeah, the opportunity isn't necessarily doing this stretching yourself. It's building the local team and fostering the relationships behind that exact experience. Right. Building the machine. Exactly. You are facilitating the environment where that interaction happens consistently, bench after bench, day after day.

Which raises a crucial question for anyone looking at this model. Model. Do I want to be closely involved in the studio day to day or do I want to build a business with an approved manager leading daily operations? It's a big decision. It is.

That seems like a fundamental role definition question you'd want to explore with management during discovery. It is. Because either way, whether you are the operator or overseeing a manager, you need a playbook that is exactly where the franchise is specific training and tools come in.

Okay. The franchisor provides an initial owner One or operator program that covers the critical pillars. Which are? Sales and operations, marketing, staffing, the studio management software, studio setup, and an opening plan review. Wow. That's comprehensive. It is. And if you choose to go the manager route we discussed, there is a separate manager module.

Oh, okay. Yeah. That specifically covers prospect generation, memberships, marketing, the studio software. I see. The sales and operations training gives you the prescribed business process so you aren't guessing how to pitch a recurring membership. The software training introduces you to the exact daily management system you'll use to run the metrics and the learning management system supplies the standard operating procedures.

And you know, the systemic support extends to the physical build out as well. Oh really? Yeah, the franchisor supplies the layout and equipment specifications and they provide approved supplier information for everything that goes into the studio. That's super helpful. They also review proposed locations.

However, it is vital to understand that the owner is ultimately responsible for finding, negotiating, and developing the site. Right. That's still your business. Exactly. Once you were open, continuing advisory assistance is provided as the franchise award determines appropriate. Thinking about all those resources, which parts would you want management to walk you through first, the pre-sales launch, the team training mechanics, or the specific differences in the owner-manager arrangement.

That's a good question. Because bringing that prioritization to a conversation with them will quickly reveal what your actual daily life will look like. It really helps prioritize your understanding of the business. Do you need to understand the local market entry first, or how you build the people delivering the service, or how your own operational schedule is going to be structured.

So we have the playbook, we understand the team structure, and we know the physical dimensions of the space. But before you can collect a single recurring membership fee, you actually have to build this place and get the doors open. What is the financial reality of establishing the business?

Well, looking at the single studio investment estimate from the disclosure, it ranges from $269,019 to $610,224. And it is important to note that this estimate includes a $65,000 initial franchise fee. So that bracket covers the critical elements of establishing the business, the studio setup, equipment and furnishings, initial marketing, training-related costs, technology, and initial operating allowance.

The variance largely comes down to real estate and leasehold improvements. That makes sense. Right. The budget assumes equipment financing and leasehold costs, net of estimated landlord improvement allowances. It also excludes tax and financing charges. Got it. The operating allowance is an estimate of additional funds for business expenses over the first three months, net of estimated revenue.

Okay. It is crucial to understand that it is not a break-even timetable. Right. It's just a buffer. Exactly. What about the recurring costs once you're actually operating? The selected ongoing costs include an 8% royalty on gross sales, followed by a 2% brand development fund contribution.

There is also required local advertising, which is the greater of $1,500 a month, or 2% of the prior month's gross sales. Additionally, technology, software, and other fees apply. And it's worth noting that advertising requirements can change under the terms of the agreement.

You know, if you're evaluating this, it's best to view these as the selected structural structural costs of this specific business model. Definitely. It's the financial architecture of being part of a franchise system rather than going it entirely alone. And management can certainly help you explore an updated budget for your specific proposed location, taking all those selected costs and regional real estate variables into account.

Absolutely. And understanding the costs to establish and maintain the business naturally leads to examining the historical revenue scale of studios that are already operating under this model. Yes. Yes, let's look at the actual evidence from the disclosure. Okay, so for calendar year 2024, the disclosure reports average annual gross revenue of $556,263 and a median of $535,521 for 417 qualified, franchised US studios that operated throughout the year.

Okay, so just over half a million for the average and the median. Right. Right. And of those, 187 or 45% met or exceeded the average. That's a helpful metric to have. Yeah. Reported revenue range from $12,406 to $1,535,958. Wow.

Okay. A very wide range there. It is. Now, regarding exclusions, the full-year group excludes non-traditional sites. Makes sense. 68 of the 485 studios operating at year end were excluded because they had not operated for the entire year. Right. You want a full 12 months of data.

Exactly. Also, gross revenue excludes sales tax and revenue from providing instructor training. Okay. And we really need to emphasize these are historical studio revenues, not owner income or a forecast for a new studio. Individual results differ with no assurance of running as much.

But how would management help someone understand the local studio model and the actual costs behind those revenues. It's a great question to ask them. Because looking at the top line is one thing, but understanding the local dynamics that drive those numbers is the crucial next step for a prospective owner.

Right. The historical data provides a concrete view of the revenue scale within that specific reporting group. Yeah. But connecting those gross numbers to the required local advertising, that 8% royalty structure, your specific regional real estate costs, and the compensation for your trained team, that is where prospective owner needs to focus their targeted analysis.

It really all circles back to the three core attractions we've discussed today. First, delivering a focused personal service in a dedicated space. Absolutely. Second, fostering ongoing membership relationships that change the business dynamic from a daily hustle for new sales into a predictable routine of value.

Right. And third, building a specialized local team backed by defined franchise tools from the the flexologist training program to the software and standard operating procedures. Those three pillars really define what this opportunity is designed to do. So here is a final thought for you to mull over as we wrap up today.

What excites you most about this model? Is it the actual mechanics of developing a local customer business? Like the marketing, the community outreach, the strategic membership growth? Or is it the satisfaction of leading the people and the service behind it? You know, managing a specialized team, ensuring high-quality personal experiences and building an internal culture in your community.

Use the disclosure and your own legal and financial advisors to evaluate the opportunity. If building a local business around assisted stretching, customer relationships, and a trained team appeals to you, let's explore what that ownership role could look like. To discuss StretchLab, your ownership goals, and the questions you want to take into discovery, visit FranchiseBrokers.com, the presenting sponsor of Franchise Roundtable.