StretchMed franchise unit economics
StretchMed franchisees run assisted-stretching studios with one to four stretching tables that sell memberships and one-on-one stretching sessions.
StretchMed franchise at a glance
StretchMed’s Item 19 reports 2025 sales by third for 29 studios trading all year, and a first-full-year operating expense statement covering wages, rent and facility and other costs.
StretchMed franchisees averaged $301,873 of sales in 2025, with a median of $264,135, according to Item 19 of StretchMed’s 2026 FDD, issued 30 April 2026. The 29 in that group are 76%* of StretchMed’s 38 locations. Fees paid to StretchMed come to about 8%* of sales. A StretchMed franchise costs $129,892 to $280,147 to open.
- A StretchMed franchise costs $129,892 to $280,147 to open, according to the brand's 2026 FDD.
- StretchMed charges a royalty of 6% of sales and a 2% brand fund contribution.
- StretchMed reported 38 franchised locations in its 2026 FDD.
- Work out StretchMed's fees at your own sales with the minimum fee calculator.
These figures come from StretchMed'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 →- The published first-full-year expense base of $287,431 is 95.2% of the average studio's revenue. It is also 158.8% of the bottom third's $181,027.
- Wages alone are $156,437, 51.8% of the average studio's revenue. Rent and facility adds $52,279, or 17.3%.
- Brand and required marketing take 22.7% of an average studio's revenue today. The share falls to 18.7% once 80% table utilization is held for 90 days, and rises to 36.6% at the reserved maximum.
- A one-table studio must reach $20,000 a month or its manager joins a paid training program. The bottom third averages $15,086 a month.
- Adding three tables costs $12,234 more at the low end of the build. It also raises the required sales level from $20,000 a month to $65,000.
How much does a StretchMed franchise make?
The average StretchMed unit reported $301,873 of revenue in the 2026 FDD, and the median reported $264,135. Item 19 of the StretchMed FDD publishes gross revenue, operating expenses and profit for its franchised studios, and what an owner keeps depends on the costs set out below. Fees come off the top first, at about 8% 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 against cost
Sales by third and operating expenses, 2025
| Group | Studios | Average revenue | Median | Minimum | Maximum | At or above average | Monthly revenue | Expense base as a share of revenue |
|---|---|---|---|---|---|---|---|---|
| Top third | 10 | $456,057 | $453,406 | $327,458 | $572,049 | 4 (40%) | $38,005 | 63.0% |
| Middle third | 10 | $256,451 | $253,027 | $217,797 | $305,189 | 5 (50%) | $21,371 | 112.1% |
| Bottom third | 9 | $181,027 | $173,756 | $137,477 | $216,654 | 4 (44%) | $15,086 | 158.8% |
| All studios | 29 | $301,873 | $264,135 | $137,477 | $572,049 | 11 (38%) | $25,156 | 95.2% |
| Line | Amount | Share of the $301,873 average |
|---|---|---|
| Wages | $156,437 | 51.8% |
| Rent and facility | $52,279 | 17.3% |
| Franchise expenses | $31,290 | 10.4% |
| Advertising and marketing | $29,265 | 9.7% |
| Bank and credit card fees | $7,161 | 2.4% |
| Office and supplies | $4,129 | 1.4% |
| Insurance and professional services | $3,213 | 1.1% |
| Transportation and travel | $2,117 | 0.7% |
| Other | $1,541 | 0.5% |
| Total annual operating expense | $287,431 | 95.2% |
| Monthly operating expense | $23,953 | n/a |
Dollar figures are as the brand reported it, reordered here by size; the percentage columns and the monthly revenue column are marked *.
The published expense base of $287,431 is 95.2% of the average studio's revenue. It exceeds the median studio's $264,135 by $23,296, the middle third's $256,451 by $30,980 and the bottom third's $181,027 by $106,404 *. Only the top third, at $456,057, clears it with room, $168,626 of room, in fact.
Wages are $156,437 and rent and facility $52,279, together $208,716. That is 69.1% of the average studio's revenue *. Everything else on the expense side combines to $78,715. So two lines carry the StretchMed model, and one of them is fixed at signature while the other is set by how many therapist hours the timetable needs.
Franchise expenses and advertising together are $60,555. They are $31,290 and $29,265, which line up closely with the contractual stack. That is 8% of sales in royalty and fund, plus the $30,000 a year of required local advertising. So these four studios were paying roughly what the agreement requires and little more.
The highest-selling studio bills $572,049 and the lowest-selling $137,477, 4.2 times. Against an expense base of $287,431 those two studios are in entirely different businesses. The top third's own minimum is $327,458, which is $40,027 above the expense base; the middle third's ceiling is $305,189, which is $17,758 above it. The line between a StretchMed studio that covers the $287,431 expense base and one that does not sits somewhere around $290,000.
Only 38% of studios reach the average of $301,873. The median is $264,135, $37,738 below it, because the top third stretches to $572,049. Half this system bills under $264,135 against a published expense base of $287,431.
Three studios with four years of continuous trading averaged $492,986 of revenue, $386,485 of expenses and $105,964 of profit. That is a 21.5% margin. Their three revenue figures reconstruct exactly as $385,468, $546,737 and $546,753, and their expenses as $324,005, $411,692 and $423,758 *, but the filed profit figures sum to $1,611 less than revenue less expenses. So either those rows are ranked separately or a small reporting difference sits inside them.
Top performers
What separates the top StretchMed performers
StretchMed splits its locations into groups instead of publishing one average. The top group averaged $456,057 a year. The lowest averaged $181,027. Both run the same brand, on the same agreement, paying the same fees. The middle location sold $264,135. The average was $301,873. More than half the system is below the number the brand quotes.
Decided before you open
- Site and trade area.The top band sells 2.5× the bottom band. Catchment, daytime population and neighboring businesses affect where a location falls.
- Capacity.Locations run 300 to 1,200 square feet. 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 $129,892 to $280,147, a 2.2× 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.
- Fees.StretchMed’s fees run about 8.0% of sales, and StretchMed sets no minimum royalty.
Context you underwrite around
- Locations included.These figures cover 29 of 38 locations. Locations open less than the full year, brand-owned, or not meeting the reporting criteria are excluded, as are locations under the brand’s current size standard.
- What the filing does not include.Item 19 of the StretchMed FDD publishes gross revenue, operating expenses and profit for its franchised studios. Ask the franchisor or current owners for any cost line the filing leaves out.
Top performers
How far apart the locations are
StretchMed reports its locations in performance groups, from the highest-selling to the lowest. The group-by-group figures are in the tables on the Model and Finance tabs.
Fees and what it costs to open
Royalty and fees
| Studio | Sales | Royalty and fund at 8% | At 80% utilization | Share | Current | Share | At the reserved maximum | Share |
|---|---|---|---|---|---|---|---|---|
| Highest-selling studio | $572,049 | $45,764 | $78,164 | 13.7% | $90,164 | 15.8% | $132,164 | 23.1% |
| Top third | $456,057 | $36,485 | $68,885 | 15.1% | $80,885 | 17.7% | $122,885 | 26.9% |
| All studios | $301,873 | $24,150 | $56,550 | 18.7% | $68,550 | 22.7% | $110,550 | 36.6% |
| Middle third | $256,451 | $20,516 | $52,916 | 20.6% | $64,916 | 25.3% | $106,916 | 41.7% |
| Bottom third | $181,027 | $14,482 | $46,882 | 25.9% | $58,882 | 32.5% | $100,882 | 55.7% |
| Lowest-selling studio | $137,477 | $10,998 | $43,398 | 31.6% | $55,398 | 40.3% | $97,398 | 70.8% |
We built this from StretchMed's filed rates, which set a 6% Continuing Service Fee and a 2% Advertising and Development Fund contribution, both on gross sales and both due by the Monday following each trading week. The Local Advertising requirement is currently set at $2,500 a month. The franchisor may raise it to $5,000 a month until a studio reaches 80% utilization, and it may be reduced to $1,500 a month once 80% is held for 90 days. A Sales Development Representative fee, currently $1,200 a month, is paid to the franchisor or an approved supplier.
Reaching 80% utilization is worth $12,000 a year. The local advertising requirement falls from $2,500 a month to $1,500 once 80% is held for 90 days. That takes the all-in rate at an average studio from 22.7% to 18.7% *. It is the clearest incentive in this fee structure. It is tied to a measure (all tables booked 8am to 8pm, seven days) that an owner controls directly.
The flat portion is $44,400 a year today. That is $30,000 of local advertising and $14,400 of sales development representative fees. That is 7.8% of the highest-selling studio's revenue and 32.3% of the lowest-selling one's. At the reserved maximum ($5,000 a month of advertising plus content and social media management) the flat portion reaches $86,400 *.
At the reserved maximum an average studio would pay 36.6% of revenue. That is $110,550 against $301,873. The bottom third would pay 55.7%. Those are amounts the franchisor may charge, so they are a ceiling, but a ceiling worth carrying in any multi-year model.
Cost to open a studio
| Item | Low | High |
|---|---|---|
| Initial franchise fee | $49,500 | $49,500 |
| Building work | $0 | $41,953 |
| Additional funds, three months | $10,000 | $20,000 |
| Office furniture, supplies, promotional products and apparel | $11,598 | $13,693 |
| Store furnishings and miscellaneous studio items | $10,673 | $13,629 |
| Presale advertising | $10,000 | $10,000 |
| Stretching tables and equipment | $6,701 | $9,187 |
| Inventory | $8,217 | $8,868 |
| Real estate, first month's rent and deposit | $4,301 | $6,452 |
| Licenses and permits | $0 | $5,200 |
| Grand opening marketing | $5,000 | $5,000 |
| Professional fees | $1,000 | $5,000 |
| Computer system and related | $4,083 | $4,083 |
| Training expenses for two people | $0 | $4,000 |
| LOI and lease review | $1,500 | $3,000 |
| Architectural plans | $0 | $2,500 |
| First aid equipment and training | $2,102 | $2,392 |
| Signage | $1,808 | $2,085 |
| Sound and camera system | $1,271 | $1,406 |
| Prepaid insurance, three months | $400 | $1,000 |
| Certified Stretch Therapist certification fee | $990 | $990 |
| CAD design and virtual rendering fee | $750 | $750 |
| Utility deposits | $0 | $400 |
| Total | $129,892 | $211,086 |
As the brand reported it, reordered here by size.
The build costs 0.43 to 0.70 times a year of average revenue. That is $129,892 to $211,086 against $301,873, among the lightest entry prices in this library. The franchise fee at $49,500 is 38% of the low column, and building work, at $0 to $41,953, is the line with the widest range.
$15,000 of the build is pre-opening marketing. That is $10,000 of presale advertising plus $5,000 of grand opening marketing, both due before the doors open and both on top of the $2,500 monthly local requirement that starts afterwards. On a format billing $25,156 a month at the system average, that is a substantial front-loaded commitment.
Working capital (cash to run the business day to day) is $10,000 to $20,000 across three months. Against a published first-full-year expense base of $287,431 ($71,858 a quarter) the reserve covers 14% to 28% of it *. That gap is the single most important adjustment to make before signing, and it is larger here than the headline investment range suggests.
Tables and hours billed
Minimum sales and investment by table count
| Studio model | Minimum monthly sales | Annualized | Per table a month | Investment low | Investment high |
|---|---|---|---|---|---|
| 1 table | $20,000 | $240,000 | $20,000 | $129,892 | $211,086 |
| 2 tables | $35,000 | $420,000 | $17,500 | $134,382 | $237,226 |
| 3 tables | $50,000 | $600,000 | $16,667 | $138,704 | $256,296 |
| 4 tables | $65,000 | $780,000 | $16,250 | $142,126 | $280,147 |
Minimum monthly sales levels and investment ranges are as the brand reported it; the annualized and per-table columns are marked *.
Adding three tables costs $12,234 more at the low end of the build. That is $142,126 against $129,892, a 9.4% increase in capital for a required sales level that rises 3.25 times, from $20,000 a month to $65,000 *. At the high end the step is $69,061. Very few formats in this library offer capacity that cheaply, which makes table count the first decision worth modeling.
The required sales level per table falls from $20,000 to $16,250. As tables are added, the franchisor expects less from each one: $20,000, $17,500, $16,667 and $16,250 a month *. That is a 19% decline, and it is the franchisor's own estimate of how quickly demand thins within a single territory.
The bottom third averages $15,086 a month, below the one-table threshold. That is nine of 29 studios. On those numbers their managers sit inside the required training program at up to $400 a month. That is $4,800 a year added to the bottom-third studios in the system. The middle third at $21,371 a month clears the one-table level and falls well short of the two-table one.
80% utilization is 67.2 booked hours a week per table. 12 hours a day across seven days is 84 hours; 80% of that is 67.2, or 3,494 hours a year *. Against the one-table minimum of $240,000 a year that works out at $68.68 per booked hour. Reaching and holding 80% for 90 days is what cuts the required local advertising spend from $2,500 a month to $1,500, worth $12,000 a year.
The all-studio average of $25,156 a month sits between the one and two-table levels. That is $5,156 above the first and $9,844 below the second. So the typical studio in this system is running more than one table's worth of demand and less than two. That is the awkward middle the per-table sales levels are designed to price.
The network of locations
Studios opened and closed, 2023 to 2025
| Year | Start | Opened | Terminations | Non-renewals | Reacquired | Ceased, other | End | Net change |
|---|---|---|---|---|---|---|---|---|
| 2023 | 11 | 7 | 0 | 0 | 0 | 1 | 17 | +6 |
| 2024 | 17 | 14 | 0 | 0 | 0 | 0 | 31 | +14 |
| 2025 | 31 | 11 | 0 | 0 | 0 | 4 | 38 | +7 |
As the brand reported it; every row reconciles exactly.
40 signed agreements sit unopened against 38 studios actually open. The backlog is larger than the network. Against 11 openings in 2025 and 18 projected for the coming year, that backlog would take more than two years to clear at the projected rate.
Four studios ceased operations in 2025 against 11 openings. That followed one in 2023 and none in 2024. On a base of 31 at the start of the year that is a 12.9% departure rate. It arrives in the same year that the network's growth slowed from +14 to +7.
The network tripled from 11 studios to 38 in three years. Openings were 7, 14 and 11. With 29 of 38 trading a full calendar year, this is a young system. The performance figures describe a population where a substantial share of studios are still in their first or second year.
The franchisor projects 3 company-owned openings. It has held none to date, and it states that it provides no performance data for company or affiliate studios. For an existing owner, company units entering the system is a development worth tracking, since it changes both the benchmark set and the franchisor's own exposure.
Questions we get asked
Questions owners ask.
How much does a StretchMed franchise make?
StretchMed franchisees averaged $301,873 of sales in 2025, with a median of $264,135, according to Item 19 of StretchMed’s 2026 FDD, issued 30 April 2026. The 29 in that group are 76%* of StretchMed’s 38 locations. Fees paid to StretchMed come to about 8%* of sales. A StretchMed franchise costs $129,892 to $280,147 to open.
What should a StretchMed studio be billing?
The 29 studios trading all of 2025 averaged $301,873 of sales with a median of $264,135, ranging from $137,477 to $572,049. By third, StretchMed locations averaged $456,057, $256,451 and $181,027, with medians of $453,406, $253,027 and $173,756. Only 38% of studios reached the average. Separately, three studios with four continuous years of trading averaged $492,986 of revenue, $386,485 of expenses and $105,964 of profit.
What does it cost to run at StretchMed?
The one expense table covers four Massachusetts studios in their first full calendar year. Wages $156,437, rent and facility $52,279, franchise expenses $31,290, advertising and marketing $29,265, bank and card fees $7,161, office and supplies $4,129, insurance and professional services $3,213, travel $2,117 and other $1,541, $287,431 a year, or $23,953 a month. Against the revenue table, that base is 95.2% of the average studio’s sales, 112.1% of the middle third’s and 158.8% of the bottom third’s.
How many tables should a StretchMed studio run?
The franchisor sets a required minimum monthly sales level by table count: $20,000 for one table, $35,000 for two, $50,000 for three and $65,000 for four. Below the level, the studio manager must attend a third-party training program costing up to $400 a month until the level is held for a full quarter. The investment rises only $12,234 from one table to four at the low end of the range. At the high end, it rises $69,061. So capacity is cheap relative to the sales expectation attached to it. The average studio bills $25,156 a month, which sits between the one and two-table levels.
What does StretchMed cost a franchisee each year?
StretchMed charges a 6% Continuing Service Fee and a 2% Advertising and Development Fund contribution, both due by the Monday after each trading week. There is also a local advertising requirement, currently $2,500 a month, and a sales development representative fee of $1,200 a month. That is 22.7% of an average studio's revenue. Holding 80% table utilization for 90 days cuts the advertising requirement to $1,500 a month, taking the rate to 18.7%. The franchisor may instead raise it to $5,000 a month until 80% is reached. StretchMed may also add content manager and social media charges of up to $500 a month each, which takes the reserved maximum to 36.6% at an average studio.
Who does bookkeeping for a StretchMed franchise?
The monthly close for this brand turns on one number: the fixed obligation. $44,400 a year of local advertising and sales development fees arrives whatever the studio bills. Rent and facility add $52,279 on top. So break-even has to be built from the fixed side. At an average studio’s $25,156 of monthly revenue there is very little room between the two. Table utilization belongs in the management pack alongside revenue, because it is the measure that releases $12,000 a year of advertising requirement and the one the required sales levels are set against. That means tracking booked hours per table against the 67.2 a week that 80% utilization represents. Royalty and fund are due weekly, by the Monday after each trading week, so the cash calendar runs seven days while the books run monthly. And because the only expense benchmark on offer comes from four first-year studios in one state, an owner’s own ratios become the real benchmark quickly. That puts a premium on a consistent chart of accounts matching the nine expense categories from month one. Averan provides bookkeeping, controller, and fractional CFO support for franchise owners and has Certified QuickBooks ProAdvisors on the team.
- Item 19 of the StretchMed FDD reports profit as gross revenue less reported expenses. That profit is before interest on debt, tax, amortization and depreciation.
Questions worth putting to StretchMed
These are questions the StretchMed filing leaves open. An owner or a buyer can put them to StretchMed directly.
- How would wages and rent at a new StretchMed location compare with the figures in the filing? Item 19 of the StretchMed FDD publishes gross revenue, operating expenses and profit for its franchised studios.
- Which factors does StretchMed 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 StretchMed 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 →Where is your utilization at StretchMed?
We review your unit economics, cash forecast and reporting, built around the booked hours per table that decide this model.
Talk to AveranWhere these figures come from.
Every figure here comes from StretchMed Franchise, 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. StretchMed® 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: StretchMed Franchise, LLC, 2026 Franchise Disclosure Document, issued 30 April 2026.
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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.
- What should I be looking at every week?It lists the handful of numbers that move before the P&L does.
- Do I need a bookkeeper, a controller, or a CFO?It explains what each role owns and when the next hire pays for itself.