Invest in Wellness: Why RedHead Ventures chose StretchLab

When choosing my first franchise I did a lot of research, I investigated 10+ franchises and business opportunities. Many were attractive but they all had something. (I'll be writing another article about that later.) This article discusses my motivations for choosing StretchLab and Xponential Fitness, specifically focusing on why I went bigger than planned and am opening three locations in San Francisco, California. Here are the key factors that influenced my decision:

• Low Startup Costs: StretchLab offers a franchise opportunity with attractive initial investment costs. Having a simple build-out and minimal equipment helps manage the cost. A discount on a 3-pack is nice when considering a multi-unit package. Selling memberships before the door opens helps too. All this reduces the per-unit cost and makes scaling the business more manageable.

• Proven Success Model: StretchLab has a well-established and proven business model with a track record of success. I spoke with 4 owners and listened to recorded validation calls of 6 others. Most had shown profitability, providing strong evidence for the potential of new locations. Those that hadn't you could see where the issues were and helped teach you as you moved through the validation process.

• Short Return on Investment (ROI): The financial projections for StretchLab franchises indicate a relatively quick return on investment. Based on numbers acquired from my various validation calls, I was able to make some pretty good high, low, and mid scenarios that helped me feel comfortable in my decision. This minimizes the upfront financial risk and allows for faster capital recovery.

• High Per-Unit Revenue and Margin: StretchLab franchises generate good revenue per location, with healthy profit margins. This isn't a business that a location is putting a million dollars in your pocket a year but it has a number that makes you feel comfortable.

• Ease of Hiring Staff: StretchLab provides training programs for staff, specifically Flexologists (stretch technicians). This reduces the burden of having to look for specialized and/or accredited staff and a smaller hiring pool. Hiring is difficult right now and the bigger the pool of potential applicants the better off your business will be.

• Established Franchisor Support: StretchLab is owned by Xponential Fitness, which offers comprehensive support to its franchisees. This includes assistance with site selection, lease negotiation, equipment procurement, and marketing strategies. They have done this process thousands of times.

• Owner's role: StretchLab does not want the owner to be the operator. They are set up to have a general manager and front desk staff so the owner can manage the business. This also means fewer in-store work hours. I have 2 children that need me after school so this was a huge consideration.

Additional Considerations:

• Market Demand: San Francisco boasts a large population with a strong focus on fitness and wellness. It also has a large high-income community that chooses to spend money on health and wellness. This aligns perfectly with the services offered by StretchLab, suggesting a high demand for assisted stretching in the target market.

• First Mover Advantage: There are currently no direct competitors for StretchLab in San Francisco. This presents a valuable opportunity to establish a strong market presence before any rivals appear.

Considering all these factors, StretchLab franchises offer a compelling investment opportunity and aligned with what I was looking for. The proven business model, coupled with the work/life balance, the right financials and great support, makes StretchLab an attractive option for aspiring franchise owners like myself.