Risk Score
Pending analysis
Investment Range
$269,019 - $610,224
Franchise Fee
$45,000
Total US Locations
485
Business Summary
Stretch Lab studios operate as fitness centers specializing in providing private and group stretching classes and related therapy services. The studios use designated equipment and offer approved services and merchandise, adhering to a comprehensive system of operational standards, customer service, and management controls.
Corporate History
Stretch Lab Franchise SPV, LLC, the current franchisor, was formed in Delaware on March 6, 2023. Prior to this, Stretch Lab® franchises were first offered in December 2017 by Stretch Lab Franchise, LLC, its predecessor. The predecessor had acquired all rights to the Stretch Lab trademarks and intellectual property from an "Initial Operator" who ran Stretch Lab studios before 2017 but did not franchise them. Following an internal reorganization in March 2023, the current franchisor acquired these rights and began selling franchises on April 4, 2023. The franchisor's direct parent is XPOF Assetco, LLC, which is ultimately controlled by Xponential Fitness, Inc., a publicly traded company.
Financial Overview
Investment Range
$269,019 - $610,224
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$65,000
Royalty %
8%
Marketing %
2%
Equipment Costs (Low)
$70,100
Equipment Costs (High)
$90,100
Working Capital
$59,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Stretch Lab's financial health is closely tied to its parent company, Xponential Fitness LLC. The auditors issued an unqualified opinion but highlighted significant related-party transactions, noting that Stretch Lab has advanced $155 million to its parent company (Xponential Fitness LLC) in 2024, which is not expected to be repaid. All of Stretch Lab's assets collateralize the parent company's existing debt. The financial statements may not reflect results if Stretch Lab operated independently. Despite these substantial related-party advances and collateralization of its assets, Stretch Lab's net income increased significantly in 2024. The company has also settled a California regulatory matter for $450,000 and is involved in various pending litigations, which, while routine, could materially affect its financial condition in future reporting periods.
Financing Details
Stretch Lab does not offer any direct or indirect financing to franchisees, nor does it guarantee any loans, leases, or other financial obligations. While it may sometimes assist franchisees by providing information about third-party lenders, such as Amerifund and Navitas, who have sponsored its conventions, Stretch Lab does not know the specific terms of any financing that franchisees might obtain from these or other lenders. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
485
Franchised Units
485
Corporate Units
0
Avg Square Footage
1,300
Franchising Since
2017
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
12
Litigation Summary
Stretch Lab's legal history includes a concluded action from 2018 where its predecessor sued the initial operator for breach of contract and trademark infringement; this case was settled. More recently, Stretch Lab's parent company, Xponential Fitness, and its affiliates are involved in several pending lawsuits. These include actions filed in 2023, 2024, and 2025 by former franchisees alleging violations of franchise investment laws, fraudulent inducement, breach of contract, and misrepresentations. Additionally, the publicly traded parent company, Xponential Fitness, Inc., is facing multiple pending shareholder lawsuits filed in 2024 and 2025 concerning alleged omissions and misstatements in public documents, breach of fiduciary duties, and mismanagement. In a regulatory matter, Stretch Lab and its affiliates entered a Consent Order in November 2024 with the California Department of Financial Protection and Innovation, resolving an investigation into material misrepresentations and omissions in registration applications, resulting in a $450,000 administrative penalty and required compliance training.
Bankruptcy History
Stretch Lab's Chief Operating Officer of North America, Timothy Weiderhoft, and his wife filed for personal Chapter 7 bankruptcy on August 9, 2023. This personal bankruptcy was a result of an unrelated restaurant venture that failed due to the COVID-19 pandemic. A discharge was granted by the bankruptcy court on December 20, 2023.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise for one additional 10-year period, Stretch Lab franchisees must sign the then-current franchise agreement (which may have different terms), maintain possession of their approved location or secure an alternative one, remodel their studio to meet current brand standards, have substantially complied with their franchise agreement and all other agreements with Stretch Lab, pay a $10,000 successor franchise fee, provide written notice of their intent to renew between 90 and 180 days before the current term expires, and sign a general legal release.
Training & Support Program
Franchisor Assistance
Stretch Lab provides new franchisees with initial training, including an Owner/Operator Module and a Flexologist Training Program for instructors. It also assists with designating a market area, providing studio layout and design specifications, and listing approved suppliers. Before opening, the franchisor consults on establishing a pre-sales phase and opening support program, and licenses its trademarks. Ongoing support includes continuing advisory assistance via various communication channels, approving equipment and suppliers, and administering a Brand Development Fund for national and regional marketing. Stretch Lab also specifies and supports the required Computer System and software for studio operations, and conducts field visits and inspections to ensure compliance.
Initial Training Hours
23
Training Location
Corporate headquarters in Irvine, CA or virtually
Ongoing Support
After opening, Stretch Lab provides continuing advisory assistance and information through various channels such as directives, system bulletins, meetings, seminars, telephone, email, fax, personal visits, newsletters, and manuals. It specifies and approves equipment and suppliers for the studio. The franchisor administers a Brand Development Fund for national and regional advertising. Franchisees may receive up to five days of additional or refresher training each year at a designated facility (without a fee for required training), or upon request (for a fee). Remedial training may also be mandated if a franchisee is not complying with brand standards. Franchisees are required to use and maintain a specified Computer System and software, which the franchisor can access, and field visits and inspections are conducted to ensure compliance.
Franchise Requirements
Ideal Candidate Profile
Stretch Lab seeks franchisees (or their designated Operating Principals) who demonstrate good moral character, a strong reputation, and possess competent business experience, aptitude, and financial resources. While personal full-time supervision is recommended, it is not strictly required, as franchisees may appoint an approved Designated Manager to oversee daily operations. The candidate or their Operating Principal must be capable of effective management and be able to guarantee performance of their obligations.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
non-exclusive
Staff Count
10
Territory Size Requirements
Stretch Lab grants a Designated Territory to franchisees, which generally encompasses an area with a population of at least 15,000 people. The exact size and shape of this territory will vary for each franchisee, determined by the specific location and demographics surrounding their individual Stretch Lab studio.
Staffing Notes
Each Stretch Lab Studio is required to have at least one individual who has completed the Owner/Operator Module or, if applicable, the Designated Manager Module of Stretch Lab's Initial Training Program, on-site at all times. Stretch Lab recommends, but does not require, that the franchisee or their Operating Principal personally supervise the Studio. If the franchisee or Operating Principal does not intend to be on-site during normal business hours, a Designated Manager must be appointed to manage daily operations. This manager must be approved by Stretch Lab and successfully complete the Designated Manager Module of the Initial Training Program. Additionally, any individual providing Approved Services at a Stretch Lab Studio must first complete the proprietary Flexologist Training Program and pass related testing. Stretch Lab estimates that 8 to 10 individuals will initially attend the Flexologist Training Program for the studio's initial staff of Authorized Instructors.