Stretch Med Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$118,160 - $253,250
Franchise Fee
$49,500
Total US Locations
31
Business Summary
STRETCHMED® Studios offer one-on-one assisted stretching services and related retail products to customers. These studios operate within a specific design and layout, typically occupying a small footprint of 300 to 1,200 square feet and featuring 1 to 4 stretching tables.
Corporate History
StretchMed Franchise, LLC was formed as a Puerto Rico Limited Liability Company on April 1, 2020. However, the STRETCHMED® brand and business type have been in operation since November 2019, initially through its predecessor, STRETCHMED® Franchise, Inc., a Massachusetts Corporation incorporated in September 2019. STRETCHMED® Franchise, Inc. began offering franchises in October 2019. On May 14, 2021, StretchMed Franchise, LLC acquired the assets of the predecessor, including its trademarks and four existing franchise agreements, and then began selling STRETCHMED® franchises in December 2022.
Financial Overview
Investment Range
$118,160 - $253,250
Franchise Fee (Low)
$49,500
Franchise Fee (High)
$49,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$34,719
Equipment Costs (High)
$123,966
Working Capital
$29,750
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements for StretchMed Franchise, LLC for the years ended December 31, 2024, and 2023 received an unqualified opinion from the independent auditors, indicating that they present fairly the company's financial position, operations, and cash flows. The auditors did not identify any conditions or events that would raise substantial doubt about StretchMed Franchise, LLC's ability to continue as a going concern. In 2023, StretchMed Franchise, LLC discontinued the sale of satellite franchise locations.
Financing Details
StretchMed Franchise, LLC does not offer any direct or indirect financing options to its franchisees. Additionally, StretchMed Franchise, LLC does not guarantee any notes, leases, or other financial obligations for franchisees.
Performance Metrics
Total US Locations
31
Franchised Units
31
Corporate Units
0
Avg Square Footage
750
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
StretchMed Franchise, LLC has faced two administrative actions in 2023 related to franchise registration. In June 2023, STRETCHMED®'s application for franchise registration in California was denied because the CPA who audited their financials did not hold an active license. This resulted in a $3,000 charge. STRETCHMED® subsequently hired a new CPA and resubmitted the application. In July 2023, while applying for registration in Washington, STRETCHMED® inadvertently failed to amend their application to reflect the California consent order related to the CPA misrepresentation. Upon notification from the State of Washington, STRETCHMED® immediately amended their application and agreed to comply with Washington's Franchise Investment Protection Act.
Bankruptcy History
StretchMed Franchise, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, STRETCHMED® franchisees must provide written notice between 6 and 9 months before their current term ends. They must be in full compliance with their franchise agreement and all financial obligations to StretchMed Franchise, LLC and its affiliates. Franchisees are required to maintain possession of their studio premises or secure an acceptable replacement, and then remodel the studio to meet StretchMed Franchise, LLC's current design standards, regardless of the cost. They must also sign StretchMed Franchise, LLC's then-current franchise agreement, which may include different terms and a renewal fee equal to 50% of the initial franchise fee. Both the franchisee and their employees must successfully complete any updated training requirements and provide proof of their right to remain at the approved location for the renewal period. Finally, if allowed by law, they must sign a general release.
Training & Support Program
Franchisor Assistance
StretchMed Franchise, LLC offers extensive support to its franchisees. Before opening, STRETCHMED® provides consultation on identifying an exclusive territory, site selection criteria, and approval of the studio's location and lease. It also gives mandatory and suggested specifications for studio design, equipment, and supplies, and provides access to its confidential Operations Manual and sample hiring documents. Franchisees receive initial training for up to two individuals, covering various aspects of the business. For ongoing support, StretchMed Franchise, LLC provides information on approved suppliers, maintains an internet-based application for confidential company information, and may send representatives for additional training and support as needed. The franchisor offers continuous advice on operations, advertising, marketing, employee training, and administrative procedures, including regular reviews of studio performance through reports and inspections. StretchMed Franchise, LLC also updates its Operations Manual and system standards, and allows franchisees to use its confidential information and trademarks. Franchisees are also required to attend annual conventions and may be required to participate in additional training courses.
Initial Training Hours
28.5
Training Location
Corporate headquarters in San Juan, PR, or virtually, or any designated location
Ongoing Support
After a STRETCHMED® Studio opens, StretchMed Franchise, LLC provides ongoing support and services. This includes supplying information on approved suppliers, maintaining an internet-based application for confidential company documents and training videos, and sending representatives for additional training and support as needed. The franchisor offers advice on studio operations based on reports, inspections, video recordings, and "secret shopper" evaluations, covering standards, specifications, operating procedures, and product pricing. STRETCHMED® also advises on advertising, marketing, employee training, and administrative procedures, including through webinars and in-person meetings, which may incur a fee. Franchisees receive continuous access to and updates for the Operations Manual and system standards. Regular inspections of the studio's operation are conducted to ensure compliance. Franchisees are required to attend an annual convention and may be required to send employees to refresher training courses.
Franchise Requirements
Ideal Candidate Profile
StretchMed Franchise, LLC seeks franchisees who are either personally involved in the direct, full-time, on-premises supervision and management of their studio, or who appoint a managing owner (if a legal entity) to fulfill this role. This managing owner or the franchisee must dedicate full-time effort to working on the premises and not be employed elsewhere. Additionally, the studio manager and any staff performing stretching services must be STRETCHMED® Certified Stretch Therapists (CST™), requiring a degree, license, or certification in an exercise science related field, and completion of the CST training program.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Full-Time
Territory Type
Exclusive
Territory Size Requirements
STRETCHMED® defines its exclusive territories based on factors such as population density, neighborhood characteristics, and competition. Although there is no minimum size, territories are typically designed to include a certain number of residents or workers. They may be delineated by 5-digit ZIP Codes, county or city boundaries, fixed geographical features like rivers or streets, or identified by a map, using demographic statistics from the U.S. Census Bureau.
Staffing Notes
STRETCHMED® Studios require a fully trained, full-time manager to be on-premises and actively involved in the studio's daily operations, with no other employment. If the manager changes, a replacement must be designated within 30 days and trained to StretchMed Franchise, LLC's satisfaction. All staff members who provide stretching services, including managers, must hold a degree, license, or certification in an exercise science related field and complete the STRETCHMED® Certified Stretch Therapist (CST™) Training Program and Certification. If a designated manager is not qualified to be a CST or will not perform stretching, an additional qualified full-time staff member must attend the CST training. Studio managers are also required to participate in ongoing training from an approved supplier until the studio consistently achieves specific monthly sales levels for three months. StretchMed Franchise, LLC also regulates staff appearance and uniforms.