StretchLab franchise unit economics
StretchLab franchisees run studios that sell monthly memberships for one-on-one assisted stretching by Flexologists.
StretchLab franchise at a glance
StretchLab’s Item 19 reports 2025 revenue and monthly active members by quartile for 448 studios trading all year, with monthly member attrition and new memberships.
StretchLab franchisees averaged $511,265 of sales in 2025, with a median of $487,003, according to Item 19 of StretchLab’s 2026 FDD, issued 17 April 2026. The 448 in that group are 92%* of StretchLab’s 486 locations. Fees paid to StretchLab come to about 12%* of sales. A StretchLab franchise costs $281,390 to $814,545 to open.
- A StretchLab franchise costs $281,390 to $814,545 to open, according to the brand's 2026 FDD.
- StretchLab charges a royalty of 8% of sales and a 2% brand fund contribution.
- On Averan's reading, StretchLab's franchise fees come to about 11.58% of sales.
- StretchLab reported 486 franchised locations in its 2026 FDD.
- Work out StretchLab's fees at your own sales with the minimum fee calculator.
These figures come from StretchLab's 2026 Franchise Disclosure Document, as the brand reported them, and were read by Averan Advisors.
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Talk to Averan → Move your books and accounting to Averan →- 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.That is a 2.6% range, while StretchLab 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.That compares with a system average of 159, and its revenue peaks at $37,363 in month ten.
- The royalty and brand fund take 10% of revenue at every studio.Local advertising and technology add $26,100 a year 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 11.6% 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
Sales, members and new memberships by quartile, 2025
| 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 quartile's revenue by its members and by twelve.
| Measure | Average | Median | Minimum | Maximum | Studios at or above average |
|---|---|---|---|---|---|
| Members leaving each month | 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. The top rate is 9.8 times the bottom rate, 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. That is 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. That is three times as many, 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%. The membership share ranges from 41% to 93%. A studio at the low end of that range is running a 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 studio bills $94,480 and the highest-selling $1,494,399. That is 15.8 times as much. 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. Low sales at the bottom of the StretchLab system are 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 top group averaged $776,614 a year. The lowest 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
- Site and trade area.The top band sells 2.7× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Capacity.Capacity is the floor space, times the hours it is open, times how full it runs. The build sets how much you can sell.
- Opening cost range.Opening costs $281,390 to $814,545, a 2.9× range inside one brand.
- Cash needed in the first year.This filing shows how a new location builds up: the month sales cover costs, and how much cash you fund before then.
Live operating levers
- Membership drives the model.Track how many members join, how many cancel, and what each member spends beyond the plan.
- Service and retail mix.Retail sales and the share of customers on higher service tiers raise revenue per hour without adding hours or rooms.
- Fees.StretchLab’s fees run about 11.6% of sales, and StretchLab sets no minimum royalty.
Context you underwrite around
- Locations included.These figures cover 448 of 486 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded.
- What the filing does not include.StretchLab’s Item 19 gives no profit or cost data for franchised locations. Ask the franchisor or current owners for cost and profit figures.
The first year, month by month
Monthly results 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. That is 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. That compares with $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. Early demand at a new StretchLab studio 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.
Month one revenue across new studios runs $2,834 to $48,191. Month eleven runs $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
Royalty and fees
| Studio | Sales | Royalty at 8% | Brand fund at 2% | Local advertising | Technology | Total, including local advertising and technology | 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% |
We built this from StretchLab's filed rates, which set an 8% royalty swept weekly by electronic transfer on the preceding week's gross sales. The franchisor may move it to a monthly interval. A 2% Brand Development Fund contribution is taken the same way and is adjustable on notice. There is also 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 it to be paid to the franchisor instead of spent locally. The technology fee is $675 a month.
The $1,500 monthly minimum local advertising charge applies below $900,000 of sales. That threshold 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. That is $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 studio in the system. Every StretchLab studio below $900,000 of sales pays the same $26,100, whether it bills $94,480 or $776,614.
With local advertising and technology included, the all-in rate runs 12.5% at the highest-selling studio and 37.6% at the lowest-selling studio. That is $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.
Cost 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.
Discounts available
- StretchLab charges qualifying U.S. veterans $45,000 instead of $60,000 (VetFran).
- StretchLab charges $50,000 for a second studio and $45,000 for a third or later studio when the franchisee already owns and operates StretchLab studios.
From Item 5 of the StretchLab 2026 FDD. The costs on this page use the full initial franchise fee for one unit, before any discount.
The build costs 0.55 to 1.59 times a year of average revenue. That is $281,390 to $814,545 against $511,265. Most of the 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 *. That is on a 1,100 to 1,500 square foot studio. StretchLab is a dense format, and a comparable barre or yoga studio occupies two to three times the space for similar revenue. That 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
Studios opened and closed, 2023 to 2025
| 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.
How much does a StretchLab franchise make?
StretchLab franchisees averaged $511,265 of sales in 2025, with a median of $487,003, according to Item 19 of StretchLab’s 2026 FDD, issued 17 April 2026. The 448 in that group are 92%* of StretchLab’s 486 locations. Fees paid to StretchLab come to about 12%* of sales. A StretchLab franchise costs $281,390 to $814,545 to open.
What should a StretchLab 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, StretchLab locations averaged $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 at StretchLab?
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 StretchLab studio build up?
It rises fast, then holds 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 StretchLab cost a franchisee each year?
StretchLab charges 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. The royalty and brand fund come to 10% of revenue at every level. The $18,000 minimum advertising charge and the $8,100 technology fee are flat and add 5.1 points at the average and 9.0 at the bottom quartile, because the 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 StretchLab reporting pack centers on three numbers. 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.
- The filing gives no profit figure. The filing reports sales and not earnings, so what an owner keeps is not disclosed.
- The filing breaks out no cost lines. Wages, rent and cost of goods are not broken out, so margin cannot be rebuilt from the document.
Questions worth putting to StretchLab
These are questions the StretchLab filing leaves open. An owner or a buyer can put them to StretchLab directly.
- What do locations at the median spend on wages and rent as a share of sales? The filing reports sales only.
- Which factors does StretchLab see in its highest-selling locations, such as trade area, years open and size?
- 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 Numbers Check 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% at StretchLab?
We review your unit economics, cash forecast and reporting, built around the customers lost rate that decides this model.
Talk to AveranWhere these figures come from.
Every figure here comes from Stretch Lab Franchise SPV, LLC’s 2026 FDD and is unaudited by us. We are unaffiliated with the brand. Calculations of our own are labeled where they appear, the figures describe past performance at other businesses and are not a projection of yours. This page is an educational summary. It is not an offer to sell a franchise, and it is not financial, legal or tax advice. StretchLab® is a registered trademark of its owner. How Averan reads a Franchise Disclosure Document.
These figures come from the brand's disclosure. They are not a forecast, an offer to sell a franchise or advice. Source: Stretch Lab Franchise SPV, LLC, 2026 Franchise Disclosure Document, issued 17 April 2026.
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StretchLab reads against the rest of the recovery, sauna and cryo group:
- beem Light Sauna
- P3 Recovery
- Pause Studio
- Perspire Sauna Studio
- Pure Sweat Studios
- Restore Hyper Wellness
- Stretch Zone
- StretchMed
- SweatHouz
- Upgrade Labs
The recovery, sauna and cryo guide compares all of them on the same figures.
Questions owners ask next
The figures above raise these, and each one is answered on its own page.
- At what level of sales does a minimum fee stop costing me more than the percentage?It works out the sales level where a minimum fee stops applying.
- How much cash do I fund before a new location covers its own costs?It builds a 13-week forecast for the months before break-even.
- My payroll percentage keeps climbing. Is that a payroll problem?It shows how to tell whether payroll is rising or revenue is falling.
- How much of Item 19 can I rely on?It explains what an Item 19 financial performance representation tells you and what it leaves out.
- What should I be looking at every week?It lists the handful of numbers that move before the P&L does.