Stretch Zone

Franchise fee: $53,550 to $59,500 — relatively narrow range. Note that the franchise fee represents roughly 40% of the midpoint investment, meaning the fee is a large proportion of your initial outlay.

Royalty: 7% of gross revenues starting from the first full calendar month. Minimum monthly royalty: $900 ($10,800/year) — kicks in regardless of revenue from month one.

Additional: Technology fee of $375/month ($4,500/year). Advertising cooperative contribution: up to 2% of monthly gross revenues, which counts toward a local advertising requirement. Combined ongoing fees to the franchisor (royalty + tech) run 7% + $375/month.

Total investment: $138,745 to $320,099. Stretch Zone studios are small-footprint (800–1,500 sq ft typically), requiring minimal retail buildout beyond Stretch Zone's proprietary tables and equipment.

Stretch Zone's Item 19 covers 330 franchised units with 12+ months of operation out of 377 total franchised units as of December 31, 2024. Of those 330, 293 provided complete data (37 excluded for non-compliance with reporting). Average gross revenues: $328,042. Median: $307,794.

By quartile: Q1 (top performers) averaged significantly higher than $328K; specific quartile averages weren't captured in extraction but the tight spread between average ($328K) and median ($308K) — just 6.5% — suggests a relatively consistent distribution without extreme outliers.

At the median ($307,794) and 7% royalty: annual royalties are $21,546. Add the $4,500 technology fee. Total franchisor payments: $26,046. The advertising co-op adds up to 2% more on gross revenues ($6,156 at median). Total mandatory payments to the franchisor/co-op: approximately $32,200 on median revenue.

Stretch Zone grew from 330 to 377 total franchised units in 2024 — a 14.2% increase, strong for any franchise brand and exceptional for a health/wellness franchise that requires specialized staff. The wellness sector tailwind is real: consumer spending on personal wellness services has grown consistently, and assisted stretching is a category that's demonstrating unit economics strong enough to support continued expansion.

Competitor StretchLab (a Xponential Fitness brand) has grown to 1,000+ locations, demonstrating that the category has scale potential. Stretch Zone's differentiation is its proprietary table equipment and methodology — the tables create a branded experience that's harder to replicate than competitors' mat-based stretching formats.

Average revenue of $328,042 is modest. At 7% royalty, the annual royalty is $22,964 — but at an investment midpoint of $229,422, you're also carrying debt service if you financed. A $175,000 SBA loan at 10-year term and 7.5% APR costs roughly $24,600/year. Combined mandatory payments (royalty + tech + co-op + debt service) could represent 40–50% of revenue for an average location in the first 3 years.

The franchise fee ($53,550–$59,500) is a large percentage of total investment. In a business where median revenue is $307,794, the franchise fee alone represents roughly 19% of one year's revenue. The franchise fee to annual revenue ratio is the least favorable in the health/wellness category — compare to Anytime Fitness where the fee is a smaller fraction of typical unit volume.

Staff certification is a meaningful operational dependency. Stretch Zone practitioners need certification in the brand's methodology — turnover among certified staff creates operational gaps that directly affect capacity and revenue. Unlike a retail or QSR operation where a new hire can be productive in days, a new Stretch Zone practitioner needs training time before they can serve clients.