Fitness
StretchLab Franchise
A one-on-one and group assisted-stretching studio franchise offering flexibility, mobility, and recovery services led by trained Flexologists, franchised as standalone studios.
Disclosed in the FDD's litigation section (Item 3)
The FDD discloses a pending arbitration: a former Toronto-area area developer/franchisee filed a claim against Stretch Lab Franchise, LLC seeking approximately CAD $3,000,000, alleging violations of Ontario's Arthur Wishart Act and related claims arising from the termination of its franchise agreements. The FDD also discloses several lawsuits involving sibling Xponential Fitness brands (AKT, Row House, CycleBar, BFT, Rumble, Yoga Six) under a 'Pending Actions Involving Parent, Predecessor or Affiliate' section -- none of those name a Stretch Lab entity as a defendant. California DFPI itself shows no action on file.
Every franchisor has to file a document called an FDD before they can legally sell you a franchise. Buried in it are the two things a sales rep won't volunteer: what you'll actually spend to open, and whether existing locations are opening or closing. That's what's below, pulled straight from StretchLab's own filing.
What it costs to open
From the filing's investment breakdown -- not a "starting at" number a sales rep quoted you.
Franchise fee
$60,000
Total to open
$271,037–$814,192
Ongoing royalty
8% of gross sales
What you'd actually spend, over time
The upfront cost is only part of it. Plug in what you expect a location to bring in, and see the real total once royalties over a few years are added on top.
Defaulted to a rough fitness industry average, not a figure from StretchLab's own FDD -- change it to your own estimate.
Total cost of ownership over 5 years
$551,037 – $1,094,192
Startup investment
$271,037–$814,192
Royalty per year (8%)
$56,000
Total royalty, 5yr
$280,000
When would you break even?
Revenue alone doesn't tell you this -- it depends on what's left after rent, labor, and everything else. StretchLab's FDD doesn't disclose a reliable profit figure (most franchisors don't), so this starts from a typical fitness profit margin (~15%) and applies it to the revenue you entered above -- adjust the percentage to your own realistic estimate.
Defaulted to a general fitness industry benchmark, not a figure from StretchLab's own filing -- this is a starting point to adjust, not a promise about what franchisees actually make.
At that profit, you'd break even in about
2.6–7.8 years
Weigh that payback period against what you already know: StretchLab is opening more locations. A long payback period on a shrinking brand is a very different bet than the same payback period on a growing one.
Is StretchLab actually growing?
Franchisors have to report, every year, how many locations opened, closed, or changed hands. Most franchise sites never show you this. Here it is:
Locations opened vs. closed, by year
GrowingFrom Item 20 of StretchLab's FDD, the section franchisors use to disclose real openings and closings.
| Year | Franchised units, start | Franchised units, end | Net change |
|---|---|---|---|
| 2023 | 283 | 428 | +145 |
| 2024 | 428 | 485 | +57 |
| 2025 | 485 | 486 | +1 |
Most recent year (2025): gained 1 franchised units, ending the year at 486 total.
Where this came from: California DFPI Registration Renewal, App ID APP00005041, filed 4/17/2026, effective 6/25/2026. FDD issuance date April 17, 2026. You can pull the same filing yourself from the California DFPI's public franchise search. Filed 2026-04-17. None of this is investment advice -- get the franchisor's current FDD and talk to a real attorney or accountant before you sign anything.
If you see a different unit count elsewhere: franchisors only have to refile their FDD annually, so the numbers here can run 6–18 months behind a franchisor's own real-time marketing claims -- which often aren't independently verified, and sometimes count signed-but-not-yet-open locations. A gap isn't necessarily an error on either side; it's two different snapshots in time from two different sources.