How Much Does a Stretch Lab Franchise Owner Make?

Item 19 officially measures Gross Revenue, Monthly Active Members, Monthly New Memberships, membership attrition, and revenue mix for the 2025 Qualified Studio population; it does not measure owner salary, distributions, Store-Level Profit, EBITDA, Net Income, or take-home pay. The applicable population is 448 traditional U.S. franchised studios that operated for the full 2025 calendar year.

The FDD defines Gross Revenue as revenue generated by a Studio from Approved Services and Approved Products, excluding sales tax and Flexologist Training Program revenue. It also cautions that this Item 19 term differs from the Franchise Agreement’s Gross Sales definition used to calculate recurring fees. That distinction prevents a perfectly exact fee-to-revenue bridge.

Official source: 2026 Amended Stretch Lab Franchise SPV, LLC Franchise Disclosure Document, Item 19, pp. 67–69. Each quartile contains 112 Qualified Studios. Across the full population, reported Gross Revenue ranged from $94,500 to $1,494,400, and 203 studios, or 45%, met or exceeded the $511,300 average.

How mature is the Item 19 population?

The result is official for full-year 2025 studios, not new openings. Thirty-eight U.S. studios were excluded because they did not operate throughout the measurement period. Item 19 separately reports monthly results for studios opened during 2025, but that cohort shrinks from 38 studios in month one to only four studios with a full month-twelve observation, so it is unsuitable as the principal annual earnings base.

The mature-studio cohort also had average Monthly Active Members of 159, a median of 149, average Monthly New Memberships of 15, average membership attrition of 9.5%, and average revenue mix of 80% memberships, 17% services, 2% fees, and 1% products. These indicators explain why active membership volume and retention are the main operating drivers behind Gross Revenue.

The earnings figures are estimated by multiplying three official 2025 Gross Revenue medians by three explicitly modeled margins. The Conservative revenue anchor is the bottom-quartile median, the Base anchor is the all-studio median, and the Upside anchor is the top-quartile median; these are observed FDD positions, not probabilities or forecasts.

Why use a 7.7% margin proxy?

The 7.7% Base margin is derived from IRS Tax Year 2017 Form 1120S data for the broad “amusement, gambling, and recreation industries” major-industry group: $2.373 billion of net income less deficit from trade or business divided by $30.865 billion of business receipts. Because that tax-return group is broader than assisted-stretch studios and older than the FDD period, it is an external benchmark rather than a same-brand fact.

The Conservative and Upside margins are the 7.7% benchmark minus and plus three percentage points, respectively. That sensitivity band is an editorial assumption required because the IRS table supplies one broad central margin rather than a comparable StretchLab distribution. The model does not subtract the FDD fee bridge a second time: the IRS net-income margin is treated as an all-in margin after business deductions. Whether the broad IRS population bears a fee structure comparable to StretchLab remains a major limitation.

Active owner operation can increase the owner’s total economic benefit only when the owner replaces paid management work. Under Item 15, the franchisor recommends but does not require personal supervision; an approved Designated Manager may handle daily operations. Therefore, manager-run residual profit and owner-operator labor value must be shown separately.

For an illustrative full-time replacement value, the model adds the May 2023 BLS annual mean wage of $78,020 for Entertainment and Recreation Managers, Except Gambling, within Other Amusement and Recreation Industries. That wage is a market labor proxy, not a StretchLab payroll disclosure, and it excludes employer benefits and payroll taxes.

Recurring obligations are material and are official FDD facts, but the exact annual burden is partly uncertain because Item 19 Gross Revenue and Franchise Agreement Gross Sales are not identical measures. At the $487,000 Item 19 median, a simplified bridge produces about $77,236, or 15.9% of Gross Revenue, before rent, payroll, insurance, supplies, processing costs, and other operating expenses.

Official fee sources: 2026 Amended FDD, Item 6, pp. 16–22, and Item 7, p. 25. The calculation applies percentages to Item 19 Gross Revenue only as an approximation. A regional or local advertising co-op is not currently charged but may be established. Required marketing is subject to a 7% monthly aggregate cap under the FDD’s notice procedure.

Why does the local advertising minimum matter?

The $1,500 monthly minimum equals $18,000 a year and exceeds 2% of annual sales until a studio reaches about $900,000 of evenly distributed annual Gross Sales. That means the fixed minimum weighs more heavily on lower-revenue studios. Using the same simplified bridge, the five listed obligations equal about 19.3% at the $307,000 bottom-quartile median, 15.9% at the $487,000 all-studio median, and 13.9% at the $724,300 top-quartile median.

The largest uncertainty is the missing same-brand expense statement. Item 19 provides a strong revenue distribution and operating indicators for 2025, but no studio-level payroll, rent, occupancy, merchant processing, insurance, supply, manager-pay, depreciation, interest, or net-income data. The IRS margin proxy cannot resolve location-specific economics.

What does Item 20 add to the risk picture?

Item 20 officially reports 486 franchised U.S. studios at year-end 2025, up from 485 at the start of the year. During 2025, 38 studios opened and 37 ceased operations for “other reasons”; 32 franchised outlets were transferred. These counts do not prove why an individual studio opened, transferred, or ceased operations, and they should not be converted into a failure probability. They do show that systemwide net growth can mask substantial outlet movement.

For new studios, ramp-up uncertainty is greater than the mature-unit model suggests. Item 19’s new-studio monthly Gross Revenue averages rose from $14,555 in month one to the mid-$30,000 range in several later months, but the reporting sample declined materially across the twelve-month table. A buyer should build a separate monthly cash-flow model rather than apply the mature annual range from opening day.

A buyer should treat the $14,400–$77,500 manager-run range and the $92,400–$155,500 owner-operator benefit range as screening scenarios, then replace the external margin proxy with same-brand evidence from written substantiation and franchisee interviews. The verification should match the intended U.S. market, studio age, lease profile, owner role, and staffing model.

The Federal Trade Commission Franchise Rule Compliance Guide explains the framework governing financial performance representations. The official U.S. StretchLab franchise page describes the brand’s executive operating model, but the current 2026 FDD and signed agreements control the applicable financial and operational terms.

The most defensible annual range is $14,400–$77,500 of estimated manager-run pre-tax owner earnings per mature traditional U.S. studio, with a $37,500 central illustration. It is scenario-based, not official owner-profit disclosure. If the owner performs full-time management work that would otherwise require paid compensation, the separate estimated owner-operator benefit is roughly $92,400–$155,500, including labor value rather than passive profit.

The strongest evidence is the 2026 FDD’s 448-studio 2025 Gross Revenue distribution; the most important earnings driver is recurring membership revenue and retention; and the largest unresolved uncertainty is the absence of same-brand operating-expense and net-income data. Before deciding, a buyer should verify Item 19 substantiation, manager and owner compensation, occupancy, payroll, debt service, and real studio financial statements through targeted franchisee interviews.