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Franchise Evaluator™: Stretch Zone

The Stretch Zone franchise logo

Stretch Zone® is in the business of providing a proprietary practitioner assisted stretching methodology through nationally accredited stretch practitioners.

The Stretch Zone employee working with a customer to stretch her hips and legs.
Several Stretch Zone clients laying on stretch beds working with practitioners.
The front entrance of one of the many Stretch Zone locations.

Franchise at a Glance

Corporate Address

Stretch Zone
6700 N Andrews Ave.
Fort Lauderdale, Florida, 33309

Year Founded: 2004
Year Started Franchising: 2017
Business Description:
Stretch Zone founder Jorden Gold pioneered the development of his practitioner assisted stretching method, resulting in a complete proprietary system including the protocols, methodologies, and tools that encapsulate the original Stretch Zone Table® and patented Stretch Zone Stabilization System. Far more than just a warm-up exercise, the Stretch Zone Method® takes stretching to an entirely new level. Routine professional stretching can have an incredible impact on overall health, while preventing injuries, increasing recovery, and enhancing everyday performance.

 

Utilizing patented equipment, Stretch Zone practitioners follow specific methods and protocols to properly position, stabilize, isolate, and manipulate muscles using powerful principles of neuromuscular behavior. By focusing and expanding upon the amazing therapeutic benefits of stretching, Stretch Zone has revolutionized the fitness industry and completely reinvented the concept of “the stretch.”

MARKET Factors

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What population does the brand serve? Is the market broad, niche, or somewhere in-between?

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Market Size

Stretch Zone operates in a segment that serves all age ranges that want to achieve better performance and experience the benefits of regularly stretching therapy. Whether people are active or inactive, competitive, or consider themselves elite, regular stretching therapy can benefit mostly everyone with a virtually limitless demographic base. Stretch Zone has identified over 1000+ territories available so growth is achievable.

9

We categorize the market size as a large market.

Scale

Small to Large Market Size
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Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

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Industry Trend

The fitness industry is a solid growth industry where people are seeking alternative treatments and therapies that provide low impact and high return on effort. Stretch Zone is the pioneer in the stretch fitness category with a proprietary stretch methodology that sets itself apart from other stretch and fitness concepts. Stretch Zone has opened over 100 locations in a single year bringing their total to over 300 locations and NO CLOSURES to date so it’s evident they are meeting a market demand.

9

We categorize the Industry Trend as high growth trend.

Scale

Low to High Growth Trend
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What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

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Product and Service Drivers

Stretch Zone is the world’s first and largest stretching franchise with a science based, patented stretching system designed to bridge the gap between health and fitness. Their proprietary Stretch Zone Method and patented Stretch Zone Table and Stretch Zone Stabilization System help practitioners deliver assisted stretching methodology and techniques. Plus, all Stretch Zone Stretch practitioners must pass a certification course to get their Stretch Practitioner Certification.

10

We categorize the product and service drivers as mid to high drivers.

Scale

Low to High Drivers
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Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

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Competitive Climate

There are alot of companies and fitness concepts competing for the attention of the Stretch Zone demographic – which is broad. Stretch Zone differentiates itself by filling the gap between health and fitness with a unique and proprietary stretching system using their patented strapping system on a proprietary table, that is not likely offered anywhere else. Stretch Zone offers a virtually limitless demographic base. Their unique patented methodology is ideal for those young and old, active and inactive, as well as competitive and elite athletes. With a concept fit for every body, the potential for growth in your market is high.

8

We categorize the competitive climate as low-mid competitive pressure.

Scale

Low to High Competition
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5

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

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Regulatory Climate

Other than adhering to state and local ordinances on health and safety, Stretch Zone is in a lightly regulated industry and does not require certifications other than those imposed by health and safety organizations. Stretch Zone practitioners undergo a rigorous certification process in the Stretch Zone Method, a nationally recognized certification approved by the National Certification Board for Therapeutic Massage & Bodywork. Stretch Zone is recognized and awarded the esteemed designation of Board Approved Continuing Education Provider. Our Master Practitioners lead a comprehensive hands-on training and certification program. Prior to being able to work in a Stretch Zone Studio, all practitioners must attend a one-week program and pass an exam to be certified.

10

We categorize the regulatory climate as low regulation.

Scale

Low to High Regulation

MODEL Factors

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This is one of the most important factors of all. To understand it you have to look beyond what the business physically does, the services performed or products sold and ask how does the franchise make money? Where does the revenue come from? How is it generated? Are financial performance representations made? Coupled with External Factors 1, 2 and 5 – Market Size, Industry Trend and Competitive Climate and the next Internal Factor 2, Franchisee Role – the true nature of the franchise starts to take shape.

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Revenue Model

Stretch Zone revenue is derived from session fees paid by clients and is classified as a membership model with high residual monthly sales, a high customer retention rate and high new “trial customer” to membership conversion rate.

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We categorize the Operational Model as Simple.

Scale

Simple to Complex Model
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How developed are the systems on which you will rely to operate your business?

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Operational Systems

Utilizing patented equipment, Stretch Zone practitioners follow specific methods and protocols to properly position, stabilize, isolate, and manipulate muscles using powerful principles of neuromuscular behavior. By focusing and expanding upon the amazing therapeutic benefits of stretching, Stretch Zone has revolutionized the fitness industry and completely reinvented the concept of “the stretch.” As the pioneers of the stretch franchise model, their operational systems are highly systemized. 

10

We categorize the Operational Systems as Comprehensive.

Scale

Basic to Comprehensive
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In this highly diffuse world, creating, managing and projecting a Brand is essential for the health and vitality of a franchise system. How well does the Franchisor manage this? How well positioned is the brand among competitors? Is it differentiated enough? How well would potential customers recognize the brand? How is it projected into new markets? What is your role and obligations in this process? How is the Brand’s digital footprint managed?

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Brand Management

Stretch Zone has been building its brand since 2004, and started franchising in 2017 to bring more locations to increase the awareness of the Stretch Zone brand. In 2021, the brand struck up a partnership with Drew Brees, who is a 20-unit Stretch Zone franchisee, which strategically positions Stretch Zone to continue its stature as a leader in the industry. Brees gives Stretch Zone high visibility as well as a level of trust in the brand. The brand also established the first and only National Stretching Day on December 11 and has a great local marketing playbook for introducing new customers to the Stretch Zone brand.

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We categorize the Brand Management as High Engagement.

Scale

Low to High Engagement
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What role is the franchisee expected to play in starting, ramping and the ongoing operation of the business?

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Franchisee Role

As a franchisee of Stretch Zone you are required to establish and operate a business, not perform the actual stretching services. In this role the franchisee is expected to be a business owner/manager as opposed to being on location performing services. Along with adequate financial resources to run this type of business and according to Stretch Zone requirements, potential franchisees do not need specialized industry knowledge or skills. As expected, you must have an aptitude and willingness to learn the system and follow the procedures, as with most franchise systems. General management, sales, hiring, retention, marketing, motivation, problem-solving, issue resolution and a financial management acumen, should a franchisee have these skills, will all be helpful in starting and growing your business.

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We categorize the Franchisee Role as Business Manager.

Scale

Service Executor to Business Manager Role
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What type of location, if any, is needed to deliver the product or service? If real estate is needed, are the requirements flexible or stringent? Is real estate essential to the product or brand experience or required for services to be performed onsite?

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Real Estate Needs

Stretch Zone does not require specialized space requirements outside of adhering to state and local ordinances pertaining to accessibility and safety. Stretch Zone space requirements range from 1000 -1400 square feet, allowing franchisees to be nimble with location placement. This flexibility creates many options for franchisees when looking for locations. Plus there are no heavy equipment or special access requirements as with many other types of services.

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We categorize the regulatory climate as basic need.

Scale

Basic to Essential Needs

ORGANIZATION Factors

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How experienced is the franchisor at being a franchisor?

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Franchising Experience

Stretch Zone was founded in 2005 by Jorden Gold who pioneered and developed his own proprietary methodology for stretching for health benefits. Stretch Zone started franchising in 2017 and has grown to over 300 locations as of June 2023. Dedicated Studio Opening Specialists are assigned to get each location up and open as quickly as possible. Stretch Zone provides comprehensive marketing and operational support to help franchisees thrive. It is important to note that there are NO Stretch Zone studio closings to date which is a testament to the strength of the repeatable system Stretch Zone has built.

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We categorize the Franchising Experience as Extensive.

Scale

Limited to Extensive
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What is the tenure, background, and commitment of the franchise’s leadership?

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Franchise Leadership

The leadership team by and large has a long tenure with Stretch Zone and have added to their already deep franchising team. As well, more recent executives come from extensive backgrounds in franchising. Led by president and CEO, Tony Zaccario and backed by Princeton Equity Group, whose majority holding consists of mostly franchised brands, Stretch Zone franchising leadership experience runs deep.



10

We categorize the Franchising Leaders as Highly Experienced.

Scale

Limited to Highly Experienced
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How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

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Franchisee Engagement

Stretch Zone has been recognized as a Top 50 in Franchisee Satisfaction and has been awarded Top 50 in the industry for Multi-Unit Ownership by Franchise Business Review. Many of Stretch Zone franchise owners are multi-unit franchisees which is a testament to the passion Stretch Zone franchisees bring to Stretch Zone every day. Suffice to say there is significant assistance and support in starting and operating your Stretch Zone business.

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We categorize the Franchisee Engagement as Highly Engaged.

Scale

Low to Highly Engaged
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In what kind of financial shape is the franchisor?

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Financial Health

Stretch Zone has experienced a 58 percent Compound Annual Growth Rate (CAGR) over the last four years. Stretch Zone also makes an Item 19 Earnings Claim where more detailed analysis of the Stretch Zone potential can be found. Backed by Princeton Equity Group, a leading private equity firm exclusively focused on the franchisor and multi-unit industry whose strategic investment in Stretch Zone serves as a strong underpinning as Stretch Zone expands. Princeton views each investment as a long-term, supportive business partnership with founders and management teams to help build companies of great value. 

10

We categorize the Financial Health as Sound.

Scale

Weak to Sound Financial Health

The BASICS

Investment Range

$123,930 – $226,949

Initial Franchise Fee
$59,500
Financial Performance Representation

Yes

Locations
300
Advertising Fund

2%

Royalty Fee

6%

Average Number of Employees

8

Agreement Term

10

Initial (Years) & Renewal

Total Franchise Evaluator Score

133

0 – 24

Missing fundamental, internal or external factors

25 – 49

More investigation is needed

50 – 74

Worth exploring further with caution

75 – 99

Add to consideration set

100 – 140

Sound opportunity and likely a great fit

Summary

With patented equipment and a differentiated stretch methodology, Stretch Zone offers a low-cost, turnkey, rapid go-to-market strategy in a segment that serves young and old, active and inactive, competitive and elite, with a virtually limitless demographic base. Stretch Zone has developed a proprietary methodology to help franchisees access this market.

Stretch Zone’s isolation of individual muscles within a muscle group breaks up the glue, unwrapping the stranglehold on your posture and valuable energy. Proper stretching slows down the aging process. You can feel younger by improving posture, circulation, and increasing range of motion.

Learn more about Stretch Zone.

 

Meet with one of our experts for guidance and to answer any questions you have regarding Stretch Zone.