Stretch Lab FDD – Franchise Information, Costs and Fees
Type of Business
The franchise is the right to develop, own and operate, as part of the Stretch Lab® system, a fitness studio that provides specialized stretch and fitness services using designated equipment.
Corporate Information
Stretch Lab Franchise SPV, LLC is a Delaware limited liability company formed on March 6, 2023. Their principal business address is 17877 Von Karman Ave., Suite 100, Irvine, CA 92614. Stretch Lab® franchises were first offered in December 2017 by Stretch Lab Franchise, LLC (“Predecessor”) who continued to offer franchises for Stretch Lab-branded studios until March 2023. To facilitate the possibility of future funding and financing opportunities for their parent entities which, through their subsidiaries, own and grant franchises for ten (10) different brands, they and their affiliates engaged in an internal reorganization, effective March 15, 2023, pursuant to which they acquired from Predecessor, and currently own, the Marks and other intellectual property related to the development and operation of Studios and the Stretch Lab system. They began selling franchises for Studios as of April 4, 2023. The Franchise Agreements, area development agreements, and certain other agreements related to Studios that were signed by Predecessor before the Reorganization were assigned to the franchisor as of December 31, 2023.
Investment
The total investment necessary to begin operation of a Stretch Lab studio is $269,019 to $610,224, which includes $157,150 to $210,350 that must be paid to franchisor or its affiliates. You and the franchisor may also enter into a multi-unit agreement under which you would agree to acquire an agreed upon number of franchises and open an agreed upon number of studios within a designated development area and pursuant to an agreed upon opening schedule. Under the multi-unit agreement, you must commit to developing at least 3 outlets. The total investment necessary to enter into a multi-unit agreement for the right to develop three Studios ranges from $289,019 to $680,224, which includes (a) the total initial investment to begin operation of your initial Stretch Lab Studio, which includes $157,150 to $210,350 that must be paid to franchisor or its affiliates; and (b) a development fee of $20,000 and a potential sourcing fee of $50,000, which must be paid to franchisor or its affiliates.
