StretchLab franchise unit economics
StretchLab franchisees run a 1,100 to 1,500 square foot studio selling one-to-one assisted stretching on monthly memberships. 448 studios trading all of 2025 averaged $511,265 of revenue on 159 monthly active members, against members leaving of 9.5% a month and 15 new memberships a month. The average studio replaces its entire base every ten and a half months and stands exactly still.
- Primary source
- Stretch Lab Franchise SPV, LLC, 2026 Franchise Disclosure Document
- Items read
- Items 5 and 6 for fees; Item 7 for cost to open; Item 19 for sales and any profit figure; Item 20 for the location count
- Population
- 448 of 486 locations
- Our calculations
- Marked on the page with an asterisk. Method
- Last reviewed
- 26 September 2026
Disclosure-based. Not a forecast, not an offer to sell a franchise, and not advice.
Monthly members leaving runs 9.5%, a figure few brands in this library put a number to. Against 159 monthly active members that is 15.1 departures a month, and new memberships average 15. The average StretchLab studio is replacing its whole base every ten and a half months to stand exactly still. The network added one studio in 2025.
- Monthly members leaving is 9.5% and new memberships are 15 a month against a base of 159.15.1 departures against 15 arrivals, the system is level.
- Revenue per member holds between $264.18 and $270.98 a month across all four quartiles.A 2.6% range while revenue varies 2.69 times.
- Openings fell 148 to 71 to 38 while closures rose 1 to 12 to 37.The network grew by one studio in 2025, and every 2025 closure had traded over twelve months.
- A new studio plateaus at about 140 members by month four.Against a system average of 159, and its revenue peaks at $37,363 in month ten.
- The brand and its required marketing take 15.1% of an average studio's revenue and 19.0% at the bottom quartile.$26,100 of that is flat regardless of sales.
How much does a StretchLab franchise make?
The average StretchLab unit reported $511,265 of revenue in the 2026 FDD, and the median reported $487,003. The brand’s disclosure document discloses revenue and not profit, so what an owner keeps depends on the cost structure set out below. Fees come off the top first, at about 12% of sales across royalty, brand fund and the rest of the stack. Revenue is not income. Rent, wages, cost of goods and the franchise fees all come out before an owner is paid. The figures for the highest-selling and lowest-selling businesses are below.
Revenue, members & customers lost
448 studios, and a published customers lost rate.
| quartile | Studios | Sales | Median revenue | Revenue range | Monthly active members | New memberships a month | Revenue per member a month |
|---|---|---|---|---|---|---|---|
| Top quartile | 112 | $776,614 | $724,319 | $616,765 – $1,494,399 | 241 | 24 | $268.54 |
| 2nd quartile | 112 | $547,480 | $549,454 | $487,529 – $615,608 | 171 | 16 | $266.80 |
| 3rd quartile | 112 | $432,479 | $433,244 | $368,135 – $486,476 | 133 | 13 | $270.98 |
| Bottom quartile | 112 | $288,485 | $306,987 | $94,480 – $367,274 | 91 | 8 | $264.18 |
| All studios | 448 | $511,265 | $487,003 | $94,480 – $1,494,399 | 159 | 15 | $267.96 |
Revenue, members, new memberships, medians and ranges are as the brand reported it. Revenue per member is marked *, dividing each quarter's revenue by its members and by twelve.
| Measure | Average | Median | Minimum | Maximum | Studios at or above average |
|---|---|---|---|---|---|
| Monthly membership members leaving | 9.5% | 9.2% | 2.0% | 19.6% | 201 (44.9%) |
| Revenue from memberships | 80% | 81% | 41% | 93% | 254 (57%) |
| Revenue from services | 17% | 16% | 5% | 53% | 191 (43%) |
| Revenue from fees | 2% | 2% | 0% | 6% | 194 (43%) |
| Revenue from products | 1% | 1% | 0% | 5% | 200 (45%) |
As the brand reported it.
9.5% a month is a ten-and-a-half-month average membership. Compounded across a year it leaves 30.2% of a starting group in place *. On a base of 159 members that is 15.1 departures a month and 181 a year, against new memberships of 15 a month and 180 a year. The average studio in this system is running a treadmill. The shape of its year is set entirely by which of those two numbers moves first.
Members leaving ranges from 2.0% to 19.6% a month. Ten times, and the studio at 2.0% keeps a member for roughly four years while the one at 19.6% keeps them five months. Half the system sits above 9.2%. That range is the sharpest operational difference in the system, and it is entirely inside an owner’s control.
Revenue per member is $264.18 to $270.98 a month across every quartile. A 2.6% range while revenue varies 2.69 times and members 2.65 times. Pricing is settled in this system. The only lever with leverage is how many people hold a membership. The only lever on that is the difference between 9.5% leaving and 15 arriving.
New memberships run 24 a month at the top quartile and 8 at the bottom. Three times, on a member base that differs 2.65 times. Against their own member counts those are 10.0% and 8.8% a month. So the top quartile is adding slightly above the system members leaving rate and the bottom quartile slightly below it. That half-point is the difference between a studio that grows and one that shrinks.
Memberships are 80% of revenue and services 17%. With a range from 41% to 93% on the membership line. A studio at the low end of that range is running a materially different business (drop-ins, packages and personal training) and its cash profile and its members leaving exposure both change with it. Fees and products together are 3%.
The lowest-selling studios bills $94,480 and the highest-selling $1,494,399. Nearly sixteen times. The bottom quarter's own range runs $94,480 to $367,274, 3.9 times inside one quartile, against 1.26 times in the second and 1.32 in the third. Weakness at the bottom of this system is concentrated in a handful of studios.
Top performers
What separates the top StretchLab performers
StretchLab splits its locations into groups instead of publishing one average. The best group averaged $776,614 a year. The worst averaged $288,485. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $487,003. The average was $511,265. More than half the system is below the number the brand quotes.
Decided before you open
- Trade area and site.A 2.7× gap between bands is not an operating gap. Catchment, daytime population and what sits next door set the ceiling before the first customer arrives.
- Capacity, fixed at build.capacity is 448 studio floor multiplied by hours multiplied by how full they run. What you can sell is set by the build, and the build does not change after opening.
- What you spend to open.Opening costs $281,390 to $814,545, a 2.9× range inside one brand. The high end usually buys more capacity, so the cheapest build is not always the cheapest route to the top band.
Live operating levers
- Members, the operating driver.This model bills on members. The owner watches how many people join, how many cancel, and what a member spends beyond the plan. It is worth watching every week, because by the time it turns up in a monthly close the quarter is half gone.
- Service and retail mix.Attachment rate on retail, and the share of customers on the higher service tiers, lift what each hour earns without adding an hour or a room. It is the only lever that raises the ceiling without spending capital.
- Fees, and where the minimum bites.Fees run about 12.0% of sales. A minimum sits underneath the percentage, so the low-volume location pays the higher effective rate. The brand charges the weakest locations the most. Work out the sales level where the percentage overtakes the minimum and know which side of it you are on, because the answer changes what an extra dollar of sales is worth.
- The first year.This filing shows how a new location builds up, so the ramp can be underwritten from the document rather than assumed. Read two things out of it: the month sales cross the point where costs are covered, and how much cash you fund before that month arrives. Everything before break-even is paid for by you.
Context you underwrite around
- The reporting screen.448 of 486 locations are behind these figures. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, so the numbers describe locations that cleared that screen, not the system as a whole.
- What the disclosure leaves out.Item 19 publishes no profit or cost data for franchised locations, no attainment figure. Anything below the sales line has to come from the franchisor or from owners you call.
The first year, month by month
Month by month, from soft opening.
| Month after soft opening | Studios reporting | Sales | Median revenue | Revenue range | Active members | New memberships |
|---|---|---|---|---|---|---|
| Month 1 | 38 | $14,555 | $11,167 | $2,834 – $48,191 | 103 | 26 |
| Month 2 | 36 | $30,907 | $28,115 | $7,151 – $79,098 | 120 | 23 |
| Month 3 | 34 | $35,341 | $33,327 | $14,139 – $90,382 | 138 | 24 |
| Month 4 | 31 | $36,550 | $34,563 | $20,945 – $83,819 | 142 | 20 |
| Month 6 | 28 | $35,431 | $32,386 | $17,277 – $78,566 | 137 | 19 |
| Month 8 | 23 | $36,199 | $33,601 | $13,808 – $87,724 | 140 | 17 |
| Month 10 | 19 | $37,363 | $29,549 | $20,552 – $95,978 | 146 | 15 |
| Month 11 | 14 | $35,256 | $30,440 | $16,983 – $96,633 | 147 | 13 |
| Month 12 | 4 | $25,343 | $24,898 | $18,032 – $33,544 | 97 | 9 |
As the brand reported it, for studios that conducted a soft opening during calendar 2025. Months 5, 7 and 9 are omitted here for space and follow the same pattern, at $36,270, $37,148 and $35,009 of revenue on 138, 140 and 147 members.
A new studio reaches 138 members by month three and 147 by month eleven. Nine more members across eight months. Revenue tells the same pattern: $35,341 in month three against $35,256 in month eleven. Whatever a StretchLab studio is going to be, it is substantially that by the end of its first quarter.
Month ten revenue of $37,363 annualizes to $448,356, 87.7% of the system average. Against $511,265. So a studio a year old sits about an eighth below where the established system sits, and the gap closes slowly if at all. Read against the quarter table, a first-year studio lands squarely in the third quartile.
New memberships fall from 26 in month one to 13 by month eleven while members hold at about 140. That is what a plateau looks like from the inside. Early demand is pent-up. Once it is served the studio is running against 9.5% monthly members leaving on a base of 140, which is 13.3 departures a month. The 13 new memberships at month eleven are exactly replacement.
The range across new studios is enormous from the first month. Month one runs $2,834 to $48,191 and month eleven $16,983 to $96,633. At month eleven the top studio is billing $1,159,596 annualized and the bottom $203,796. So the outcome separates immediately, which makes the pre-sale and the first quarter the decisive period.
The month-twelve column describes four studios. Its $25,343 of revenue and 97 members sit well below month eleven's $35,256 and 147, which is a sample effect. Those four studios opened earliest in 2025 and are a different group from the thirty-eight in month one. Planning against month ten or eleven is the safer read.
Fees and what it costs to open
What the fees come to. (Items 5 and 6)
| Studio | Sales | Royalty at 8% | Brand fund at 2% | Local advertising | Technology | Total | Share of revenue |
|---|---|---|---|---|---|---|---|
| Highest-selling studio | $1,494,399 | $119,552 | $29,888 | $29,888 | $8,100 | $187,428 | 12.5% |
| Top quartile | $776,614 | $62,129 | $15,532 | $18,000 | $8,100 | $103,761 | 13.4% |
| All studios | $511,265 | $40,901 | $10,225 | $18,000 | $8,100 | $77,226 | 15.1% |
| Median studio | $487,003 | $38,960 | $9,740 | $18,000 | $8,100 | $74,800 | 15.4% |
| Bottom quartile | $288,485 | $23,079 | $5,770 | $18,000 | $8,100 | $54,949 | 19.0% |
| Lowest-selling studio | $94,480 | $7,558 | $1,890 | $18,000 | $8,100 | $35,548 | 37.6% |
Ours, built from the filed rates: an 8% royalty swept weekly by electronic transfer on the preceding week's gross sales. The franchisor may move to a monthly interval. A 2% Brand Development Fund contribution taken the same way and adjustable on notice. A Local Advertising Requirement of the greater of $1,500 a month or 2% of the prior month's gross sales. The franchisor may require to be paid to it instead of spent locally. And a technology fee of $675 a month.
The $1,500 monthly minimum local advertising charge binds below $900,000 of sales. Which is above the top quarter's own average of $776,614, so it binds on effectively the whole system. At bottom-quarter revenue the 2% rate would be $5,770 and the minimum costs $18,000, $12,230 more, or 4.2 points of revenue.
$26,100 a year is flat. $18,000 of local advertising and $8,100 of technology. That is 3.4% of top-quarter revenue, 5.1% at the average, 9.0% at the bottom quartile and 27.6% at the lowest-selling studios in the system. Every studio in this network pays the same $26,100 whether it bills $94,480 or $776,614.
The all-in rate runs 12.5% at the highest-selling studios and 37.6% at the lowest-selling studios. $187,428 against $35,548 in absolute dollars. The 10% percentage element is at the higher end for boutique fitness. The flat $26,100 is what stretches the range, hardest, as always, where the revenue is thinnest.
What it costs to open a studio.
| Item | Low | High |
|---|---|---|
| Building work | $59,438 | $386,000 |
| Fitness equipment and initial fit-out package | $61,553 | $89,561 |
| Additional funds, three months | $33,000 | $86,000 |
| Initial franchise fee | $60,000 | $60,000 |
| Real estate, lease and professional fees | $16,200 | $50,000 |
| Initial marketing and advertising spend | $15,000 | $45,000 |
| Sourcing fee | $0 | $28,000 |
| Signage | $7,500 | $24,000 |
| Insurance | $3,300 | $15,035 |
| Pre-sales and soft opening retail inventory kit | $12,100 | $13,300 |
| Computer, audio-visual and related equipment | $5,500 | $6,000 |
| Technology and software fees | $4,399 | $4,399 |
| Initial instructor training fees | $3,400 | $4,250 |
| Travel and living while training | $0 | $3,000 |
| Total | $281,390 | $814,545 |
As the brand reported it, reordered here by size.
The build costs 0.55 to 1.59 times a year of average revenue. $281,390 to $814,545 against $511,265. The whole range sits in two lines: building work at $59,438 to $386,000 and the equipment package at $61,553 to $89,561. At bottom-quarter revenue of $288,485 the low build is a year of sales and the high build is 2.8 years.
Revenue runs $341 to $465 a square foot *, on an 1,100 to 1,500 square foot studio. That is a dense format, a comparable barre or yoga studio occupies two to three times the space for similar revenue. Is why the entry price sits where it does and why the occupancy cost line matters less here than in most fitness brands.
$15,000 to $45,000 of initial marketing sits alongside a pre-sales phase. A new studio opens with 103 active members already in place at the close of month one, against a system average of 159. So that spend buys roughly two-thirds of a mature member base before the doors open, and the following year adds about 44 more.
The network of locations
The network of locations. (Item 20)
| Year | Start | Opened | Terminations | Non-renewals | Reacquired | Ceased, other | End | Net change |
|---|---|---|---|---|---|---|---|---|
| 2023 | 283 | 148 | 0 | 0 | 2 | 1 | 428 | +145 |
| 2024 | 428 | 71 | 2 | 0 | 0 | 12 | 485 | +57 |
| 2025 | 485 | 38 | 0 | 0 | 0 | 37 | 486 | +1 |
As the brand reported it; every row reconciles exactly.
Openings fell 148, 71, 38 while closures rose 1, 12, 37. The two lines met in 2025 and the network grew by one studio. That is the single most important number for an existing owner. The system has stopped expanding. That changes what a brand fund buys and how a resale market prices.
37 studios ceased operations in 2025, 7.6% of the 485 open at the start of the year. Every one had traded more than twelve months, so these were established studios choosing to stop. Set against a bottom quartile averaging $288,485 and a build costing at least $281,390, the arithmetic behind those decisions is visible in the tables above.
47 signed agreements sit unopened against 22 projected openings. Less than half the backlog is expected to convert next year, and 38 openings in 2025 was already a quarter of the 2023 figure. An owner looking at a second studio is doing so in a much quieter development market than the one that built this network.
The franchisor holds zero company studios. It held one in 2023 and two in 2024, and sold or closed both. Every one of the 486 studios open at the end of 2025 is franchisee-owned, so every figure here describes an operator running their own money.
Questions we get asked
Questions owners ask.
What should a studio be billing?
The 448 studios trading all of 2025 averaged $511,265 of sales with a median of $487,003, ranging from $94,480 to $1,494,399. By quartile: $776,614, $547,480, $432,479 and $288,485. Monthly active members averaged 159, from 35 to 548, and by quartile 241, 171, 133 and 91. New memberships averaged 15 a month, from 4 to 38.
What is a realistic members leaving rate?
The system average is 9.5% a month with a median of 9.2%, ranging from 2.0% to 19.6%. At 9.5% the average membership lasts about ten and a half months, and 30.2% of a group survives a full year. On a base of 159 members that means 15.1 departures a month against new memberships of 15, so the average studio is standing still. A studio at 2.0% keeps members roughly four years; one at 19.6% keeps them five months.
How fast does a new studio build-up?
Fast, then flat. Studios opening during 2025 billed $14,555 in month one, $30,907 in month two and $35,341 in month three, on 103, 120 and 138 active members. From there it plateaus: $36,550 and 142 members at month four, $37,363 and 146 at month ten, $35,256 and 147 at month eleven. New memberships fall from 26 a month to 13 across the same period. Month ten revenue annualizes to $448,356, which is 87.7% of the system average and lands a first-year studio in the third quartile. The later columns cover progressively fewer studios, with month twelve describing four.
What does the brand cost each year?
An 8% royalty swept weekly by electronic transfer, a 2% Brand Development Fund contribution on the same schedule, a local advertising requirement of the greater of $1,500 a month or 2% of the prior month’s sales, and a $675 monthly technology fee. That works out at 13.4% of revenue at the top quartile, 15.1% at the average and 19.0% at the bottom quartile. Because the $18,000 minimum advertising charge binds on any studio below $900,000 of sales, which is nearly all of them. The royalty runs on a gross sales definition that departs from the revenue tables, so the two bases need reconciling.
Who does bookkeeping for a StretchLab franchise?
The reporting pack for this brand writes itself, because three numbers decide the business. Monthly active members belongs at the top, against 159 system-wide and the quarter boundaries of 91, 133, 171 and 241. Members leaving sits directly beneath it, against 9.5% system-wide and a 9.2% median, calculated as cancellations in the month over the prior month-end base, so the figure stays comparable. New memberships is the third, against 15 a month. The discipline is to read it against members leaving: at 159 members, anything under 15.1 is a shrinking studio. Revenue per member works as a control at about $268 a month. The membership share of revenue against 80% flags when a studio has drifted toward drop-ins and packages. Royalty and brand fund are swept weekly straight from the payment processor. So the cash calendar runs weekly while the books run monthly. And the royalty base departs from the revenue figure the brand reports. So the two need reconciling and documenting. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
- No profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- No cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
- No attainment figure. The filing does not say how many locations reached the average it publishes.
Questions worth putting to StretchLab
The filing answers what it answers. These are the gaps an owner or a buyer should close directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- What separates the highest-selling locations from the lowest: trade area, years open, size, or the owner?
- How long does a new location take to reach the average you publish, and what does the build-up look like month by month?
- At what level of sales do the minimum charges stop applying and the percentage take over?
- How many StretchLab locations closed, were sold, or changed hands last year, and why?
Run your own numbers.
The Franchise Finance Diagnostic runs the same checks on your own numbers. It scores where you stand and compares you with Item 19 of your brand’s FDD. It works out what one location earns and spends, and builds a 13-week cash forecast. Checks whether you are ready to open another one. It is free and it runs in your browser.
Launch the diagnostic →Is your members leaving above 9.5%?
A structured review of your unit economics, cash forecast, and reporting, built around the customers lost rate that decides this model.
Request the review