Risk Score
Pending analysis
Investment Range
$138,745 - $320,099
Franchise Fee
$53,550
Min Cash Required
$10,000
Total US Locations
377
Business Summary
Stretch Zone operates a business that offers advanced, certified practitioner-assisted stretching services to individuals under the brand name Stretch Zone. Each Stretch Zone location focuses on providing one-on-one stretching sessions. Services must be performed by individuals who have completed Stretch Zone's proprietary Stretch Practitioner Training Program.
Corporate History
Stretch Zone Franchising LLC was organized in Florida on November 25, 2015. Its predecessor, Stretch Zone Holdings LLC (SZH), was formed earlier in March 2015 and was the corporate parent until March 2023 when SZ PEP Holdco, LLC acquired Stretch Zone Franchising LLC. Stretch Zone began selling franchises and area development rights in June 2016. Before the acquisition in March 2023, SZH held a majority interest in three Stretch Zone businesses. After the acquisition, these three businesses became franchised units under new agreements.
Financial Overview
Investment Range
$138,745 - $320,099
Franchise Fee (Low)
$53,550
Franchise Fee (High)
$59,500
Minimum Cash Required
$10,000
Royalty %
7%
Marketing %
2%
Equipment Costs (Low)
$46,640
Equipment Costs (High)
$176,349
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
Stretch Zone's financial condition raises questions about its ability to provide services and support to franchisees. In 2024, the company experienced a net loss of approximately $2.68 million and used about $854,000 in cash for its operations, resulting in a working capital deficit of about $1.11 million by the end of the year. While Stretch Zone's management believes it has sufficient resources and projected cash flows for the next 12 months, there is a risk that if performance falls short or expenses exceed expectations, the company may need to seek additional funding. Failure to secure such funding could significantly harm its financial standing. Additionally, as of December 31, 2024, Stretch Zone was not in compliance with certain financial covenants of its Senior Credit Facility. Although a waiver for this non-compliance was received in April 2025, its parent company had to issue $4.3 million in promissory notes to prepay principal on the credit facility.
Financing Details
Stretch Zone does not offer any direct or indirect financing to its franchisees. Additionally, Stretch Zone does not guarantee any franchisee's notes, leases, or other financial obligations.
Performance Metrics
Total US Locations
377
Franchised Units
377
Corporate Units
0
Avg Square Footage
1,250
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
Stretch Zone had one litigation case filed in 2019 against its predecessor, Stretch Zone Holdings LLC (SZH), and its other owners by a former owner and general manager, Michael S. Bush. The lawsuit alleged improper removal from his role, sought to have him reinstated, and requested a custodian or receiver be appointed to manage SZH. It also included claims of fraud and conspiracy regarding SZH's ownership. The court dismissed several counts in June 2020. The parties reached a settlement in which SZH agreed to pay Mr. Bush $5,250,000 to buy out his ownership interest. The case was dismissed with prejudice in December 2020. Stretch Zone has no other reportable litigation.
Bankruptcy History
Stretch Zone has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Stretch Zone franchisees must provide written notice of their intent to renew 6 to 12 months before the current term ends. They must not be in default of their franchise agreement or any other agreement with Stretch Zone or its affiliates. Franchisees are required to sign a new franchise agreement, which may have different terms and conditions from their original agreement, but they will not pay a new initial franchise fee; instead, they will pay a renewal fee equal to 50% of the then-current initial franchise fee. Franchisees must also sign a general release of any claims against Stretch Zone and its affiliates. They must be able to continue occupying their current approved location or secure a new one within their protected territory that does not infringe on other Stretch Zone units. Finally, franchisees must complete any required maintenance, refurbishing, renovating, and upgrading to meet Stretch Zone's current brand standards.
Training & Support Program
Franchisor Assistance
Stretch Zone provides extensive support to its franchisees. Before opening, it offers site selection guidance, lease negotiation advice, and prototype architectural drawings and design specifications for the premises. Stretch Zone sells the necessary furniture, fixtures, and furnishings, and specifies approved suppliers for indoor signage and graphics. Franchisees receive business planning referrals and their business is listed on the Stretch Zone website. The franchisor provides lists of equipment, forms, reporting requirements, and marketing materials. Employee hiring information, including pay scale suggestions and interview systems, is also offered. Initial training includes a Franchisee Training Program and a Regional Manager Training Program conducted at Stretch Zone's corporate headquarters, plus an Initial On-Site Training Program at the franchisee's business, which covers practitioner and sales associate training. Franchisees also gain electronic access to the Operations Manual. For the grand opening, Stretch Zone provides promotional support, social media scheduling, email campaigns, photography, and press release assistance. After opening, ongoing support includes informational assistance by phone and email through the StretchNet Portal, website maintenance, a store email address, and promotional materials. An annual recertification program for Certified Stretch Zone Practitioners is mandatory (for a fee), and Stretch Zone has the right to set pricing policies. Franchisees also receive licenses to use Stretch Zone's intellectual property and various software systems such as Stretch Net, Career Plug, Office 365, QuickBooks Online, KnetK, Factor 4, Predictive Index, Canva, and Perkville.
Initial Training Hours
108
Training Location
Our training facility in Fort Lauderdale, Florida, online/virtual, and at the franchisee's business location.
Ongoing Support
After opening, Stretch Zone provides ongoing support through informational assistance via telephone and email through its StretchNet Portal, offering consultation on operations, advertising, promotion, and business methods. Stretch Zone maintains its website, listing franchisee locations, and provides a store email address and accounts for franchisees and their managers. Franchisees receive promotional methods and materials developed by Stretch Zone. An annual recertification training program is conducted for all Certified Stretch Zone Practitioners for a fee, typically offered virtually but may be in-person. Stretch Zone also has the right to set pricing policies for products and services offered at the franchise. Franchisees are licensed to use Stretch Zone's intellectual property and various software, including Stretch Net, Career Plug, Office 365, QuickBooks Online, KnetK, Factor 4, Predictive Index, Canva, and Perkville.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
limited
Territory Size Requirements
Each Stretch Zone territory is primarily defined as a 3-mile radius around the physical premises. Additional site selection criteria include population demographics, traffic counts, parking availability, visibility from roadways, neighborhood character, proximity of competitive businesses, and the size and appearance of the site.
Staffing Notes
Stretch Zone Franchisees are recommended to be active in the operation of their Franchise Business, although personal "on-premises" participation is not required. Stretch Zone Franchisees must designate an individual to serve as their Regional Manager. This Regional Manager must dedicate their best reasonable full-time efforts to the management and operation of the Stretch Zone business and must complete the Regional Manager Training Program, the Stretch Practitioner Training Program, and the Sales Associate Training Program before managing the business. If the Regional Manager changes due to death, disability, termination, or any other reason, the franchisee or their Designated Representative must cover these obligations until a new, acceptable Regional Manager who has successfully completed the required training is designated. Each Stretch Zone business must have at least one Certified Stretch Zone Practitioner working on-site during all times of operation to provide the approved services. Franchisees are responsible for maintaining a competent, conscientious staff and employing the minimum number of employees necessary to meet the anticipated volume of business. All employees and independent contractors must undergo a background screening prior to hiring or retention. The Operations Manual includes specifications for employee uniforms, and all staff must maintain a neat appearance and comply with any required dress code. Stretch Zone Franchisees are solely responsible for all employment decisions and functions, including hiring, disciplining, supervising, promoting, and record-keeping. The Regional Manager and any other employees having access to the Operations Manual and other confidential information must sign a Confidentiality and Non-Competition Agreement. Franchisees are prohibited from recruiting or hiring any employee or independent contractor of a Company-Owned Unit or another Franchised Unit without obtaining the employer's written permission.