Missing fundamental, internal or external factors

Franchise Evaluator™: Stretch Zone
Why we love this concept: Stretch Zone® is in the business of providing a proprietary practitioner assisted stretching methodology through nationally accredited stretch practitioners.
Investment Range: $123,930 – $226,949

Franchise Evaluator Score
More investigation is needed
Worth exploring further with caution
Add to consideration set
Sound opportunity and likely a great fit
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
Market Size
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Factor Definition
What population does the brand serve? Is the market broad, niche, or somewhere in-between?
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Our Assessment
Stretch Zone operates in a segment that serves all age ranges that want to achieve better performance and experience the benefits of regular stretch therapy. Whether people are active or inactive, competitive, or consider themselves elite, therapeutic stretching can benefit mostly everyone with a virtually limitless demographic base. Along with opportunity in growth of customer base, Stretch Zone has identified over 1000+ territories available, making expansion more opportunistic than ever.
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Factor Summary
We categorize the market size as a large market.
Small to Large Market Size
Industry Trend
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Factor Definition
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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Our Assessment
The fitness industry is on a continuous trend of growth in which 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.
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Factor Summary
We categorize the Industry Trend as a high growth trend.
Low to High Growth Trend
Product and Service Drivers
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Factor Definition
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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Our Assessment
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, 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.
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Factor Summary
We categorize the product and service drivers as high drivers.
Low to High Drivers
Competitive Climate
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Factor Definition
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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Our Assessment
There are alot of companies and fitness concepts competing for the attention of the Stretch Zone demographic, such as Stretch Lab – 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.
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Factor Summary
We categorize the competitive climate as low-mid competitive pressure.
Low to High Competition
Regulatory Climate
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Factor Definition
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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Our Assessment
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.
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Factor Summary
We categorize the regulatory climate as low regulation.
Low to High Regulation
MODEL Factors
Revenue Model
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Factor Definition
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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Our Assessment
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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Factor Summary
We categorize the Operational Model as Simple.
Simple to Complex Model
Operational Systems
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Factor Definition
How developed are the systems on which you will rely to operate your business?
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Our Assessment
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.
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Factor Summary
We categorize the Operational Systems as Comprehensive
Basic to Comprehensive
Brand Management
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Factor Definition
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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Our Assessment
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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Factor Summary
We categorize the Brand Management as High Engagement
Low to High Engagement
Franchisee Role
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Factor Definition
What role is the franchisee expected to play in starting, ramping and the ongoing operation of the business?
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Our Assessment
As a franchisee of Stretch Zone you are required to establish and operate a business, not perform the actual stretching services. The expectation of this role is 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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Factor Summary
We categorize the Franchisee Role as Business Manager.
Service Executor to Business Manager Role
Real Estate Needs
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Factor Definition
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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Our Assessment
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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Factor Summary
We categorize the real Estate Needs as basic need.
Basic to Essential Needs
ORGANIZATION Factors
Franchising Experience
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Factor Definition
How experienced is the franchisor at being a franchisor?
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Our Assessment
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 the Stretch Zone franchise has built.
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Factor Summary
We categorize the Franchising Experience as Extensive.
Limited to Extensive
Franchise Leadership
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Factor Definition
What is the tenure, background, and commitment of the franchise’s leadership?
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Our Assessment
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.
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Factor Summary
We categorize the Franchising Leaders as Highly Experienced.
Limited to Highly Experience
Franchisee Engagement
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Factor Definition
How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.
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Our Assessment
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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Factor Summary
We categorize the Franchisee Engagement as Highly Engaged.
Low to Highly Engaged
Financial Health
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Factor Definition
In what kind of financial shape is the franchisor?
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Our Assessment
Stretch Zone has experienced an impressive 58% 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.
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Factor Summary
We categorize the Financial Health as Sound.
Weak to Sound Financial Health
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.
Questions
If you have any questions about this evaluation, or want this concept evaluated based on the specifics in your market please contact us at [email protected]