Stretch Zone Franchise Costs $124K – $127K (+ 2024 Profits)

Stretch Zone, founded in 2004 by Jorden Gold, is a leader in the practitioner-assisted stretching sector. The concept was born out of Gold’s experience with the benefits of assisted stretching, particularly for his grandfather, which led him to design the world’s first proprietary table and patented strapping system for practitioner-assisted stretch therapy.

The company, headquartered in Fort Lauderdale, Florida, embarked on franchising in 2015. This move was part of a broader strategy to expand its unique services to a wider audience, leveraging its patented equipment and proprietary stretching methodology.

Stretch Zone differentiates itself by offering a science-backed stretching protocol that aims to improve clients’ quality of life, mobility, and muscle function across a broad demographic range, from young and active individuals to the elderly and less active.

Type of Expenditure	Amount
Franchise Fee	$49,500 – $59,500
Prepaid Rent and Security Deposit	$2,500 – $16,500
Leasehold Improvements	$4,000 – $30,000
Architect’s and Engineer’s Fees	$0 – $3,500
Furniture, Fixtures, and Furnishings	$5,475 – $14,000
Computer System	$1,850 – $2,699
Outdoor Signage	$2,000 – $11,000
Indoor Signage and Graphics	$5,500 – $8,750
Utility Deposits	$200 – $800
Office and Store Supplies	$1,055 – $2,000
Stretching Tables and Accessories	$23,400 – $37,400
Insurance	$1,750 – $2,500
Licenses and Permits	$200 – $800
Attorney’s Fees	$1,000 – $2,000
Accountant’s Fee	$500 – $2,000
Travel, Lodging, Meals, Etc. for Initial Training	$2,500 – $8,000
Initial Advertising Contribution to Media Fund	$500
Pre-Grand Opening and Studio Grand Opening Plan	$2,000 – $5,000
Total	$124,000 – $227,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The Initial Franchise Fee is $59,500 for new franchises, establishing the initial investment required to join the franchise network. For veterans, there’s a discount available, reducing the fee to $53,550, as a gesture of appreciation for their service.

Royalty Fee

Franchisees are obligated to pay a Royalty Fee equal to 6% of Gross Revenues. This fee is automatically deducted from the remittances provided by ClubReady twice weekly, ensuring ongoing support and access to the franchise’s resources.

Advertising Fee

The Advertising Fee includes an initial contribution of $500 to the Media Fund, followed by an ongoing charge of 2% of monthly Gross Revenues. This fee supports collective marketing efforts and enhances the brand’s visibility.

Technology Fee

The Technology Fee is set at $320 per month and covers a suite of digital tools and platforms essential for the modern operations of the franchise. This fee ensures franchisees have access to necessary technological resources.

Transfer Fees

Transfer Fees are set at $1,000 for transfers to a business entity, reflecting administrative costs. For sales to third parties, the fee increases to $10,000, accounting for the more complex process of transferring franchise ownership outside the existing business structure.

Renewal Fees

Upon renewal, franchisees are required to pay 50% of the then-current Initial Franchise Fee. This fee ensures continued access to the franchise system and its benefits, reflecting a commitment to long-term partnership.

Franchise pros and cons

Pros

• Initial and ongoing training: Stretch Zone offers detailed training programs to help franchisees succeed. As part of the Franchise Agreement, franchisees are guaranteed 16-96 hours of effective classroom training and ongoing support covering the grand opening, field operations, site selection and meetings and conventions. 
• Marketing strategy: the franchisor helps new business owners reach the desired market via email marketing, national media, SEO, ad templates, social media and website development. Franchisees can leverage the brand’s popularity to get clients via digital marketing and community outreach. 
• Exclusive territory protection: franchisees get exclusive rights to run their businesses in select locations without competition from similar startups. Stretch Zone assures franchisees it won’t have two or more startups competing for clients in the same region. 
• Limitless growth potential: Stretch Zone’s business concept is one of its kind in the health and wellness industry. Franchisees invest in a unique concept with high growth potential. 
• Wide demographic base: Stretch Zone is a transformative fitness company for clients of all ages, from the youth to the elderly, active and inactive, men and women. Franchisees get a ready market base to improve their earning potential. 
• A low-cost, modular business concept: practitioner-assisted stretching is a simple concept that fits any market. New business owners can set up their brands in the smallest or largest cities, depending on their preferences. 

Cons

• No absentee ownership: no passive ownership when running a Stretch Zone franchise. Franchisees must be involved in business operations after the grand opening. 
• No part-time operation:  Stretch Zone franchise isn’t a part-time business. The fitness clubs must stick to the franchisor’s schedule according to the Franchise Agreement. 
• Not a mobile/home-based unit: Stretch Zone fitness centers must be run from physical locations. The franchise isn’t a home-based opportunity. 
• No third-party financing: the franchisor doesn’t liaise with third-party sources to help franchisees secure funding. Franchisees must find their means to cover the franchise fee, equipment, trade fixtures and inventory. 
• Competition: Main competitors include StretchLab and Simply Stretch.

How to apply

Opening a Stretch Zone franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Stretch Zone franchise.

1. Initial Inquiry

• Start by expressing your interest in the Stretch Zone franchise by filling out an inquiry form on their official website.
• This step is essential for potential franchisees to introduce themselves and signal their intent to explore franchise opportunities with Stretch Zone.

2. Submit Request for Consideration

• Complete a formal Request for Consideration to provide more detailed information about yourself and your qualifications.
• This document is critical for Stretch Zone to assess your suitability as a franchisee and for you to receive the Franchise Disclosure Document (FDD).

3. Review Franchise Disclosure Document

• Carefully review the Franchise Disclosure Document (FDD) provided by Stretch Zone.
• The FDD contains crucial information about the franchise, including fees, investment requirements, support, and the legal obligations of both the franchisor and franchisee.

4. Due Diligence and Stretch Experience

• Engage in thorough due diligence by researching the franchise, speaking with existing franchisees, and possibly visiting operational locations.
• It’s recommended to experience the Stretch Zone service firsthand to understand the customer experience and service quality.

5. Discovery Day Participation

• Attend a Discovery Day event organized by Stretch Zone, where potential franchisees can meet the franchisor’s team, ask questions, and gain deeper insights into the franchise’s operations and culture.
• This step is crucial for both parties to assess compatibility and for you to get a comprehensive understanding of the franchise.

6. Finalize Territory and Studio Number

• Work with Stretch Zone’s Franchise Development Team to finalize the territory where you will operate and the number of studios you plan to open.
• This agreement will outline the geographic area of your franchise and the scale of your investment.

7. Sign Franchise Agreement

• Upon mutual agreement, you will sign the franchise agreement, formalizing your commitment to opening a Stretch Zone franchise.
• This legal document outlines the terms of your franchise ownership, including the rights and responsibilities of both you and the franchisor.

8. Begin Onboarding Process

• Start the onboarding process, which includes training, site selection, construction, and preparation for your studio’s opening.
• Stretch Zone provides support in these areas to ensure you are fully prepared to operate your franchise successfully​​.

Disclaimer

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