How to Finance a Stretch Recovery Lounge Franchise: Studio Launch
By Chris Cornella
A Stretch Recovery Lounge franchise loan funds a small assisted stretching and athletic recovery studio, where trained staff guide clients through one-on-one stretch sessions and recovery services such as compression. The model is people-driven and light on square footage, so the budget leans toward build-out of private stretch areas, recovery equipment, staff training and the working capital needed to build a membership base.
US Professional Funding is not affiliated with, sponsored by or endorsed by Stretch Recovery Lounge; the name is used only to describe the business. Fees and investment figures come from the franchisor’s Franchise Disclosure Document (FDD) and can change with each edition. Loan programs and terms vary by lender and borrower, and every loan is subject to approval. Nothing here is legal, tax or investment advice; review the current FDD and franchise agreement with a franchise attorney and an accountant before you sign or borrow.
Stretch Recovery Lounge Franchise Loan at a Glance
- Concept: an assisted stretching and athletic recovery studio offering one-on-one stretch sessions and compression, by appointment, for clients of all ages and fitness levels.
- Client journey: each new client starts with a consultation, moves into a guided stretch session and leaves with a personalized plan.
- Revenue model: tiered monthly memberships plus session packages.
- Footprint: roots in northern New Jersey, with studios in towns such as Ridgewood, Tenafly, Westfield, Montclair and Hoboken and a presence in New York City.
- Fees and investment: the franchise fee, royalty, marketing fund and investment range are disclosed in Items 5, 6 and 7 of the FDD; we could not verify current figures from the franchisor’s own published materials.
- SBA Franchise Directory: listed as Stretch Recovery Lounge under code S8624, with no special note.
What Is Stretch Recovery Lounge?
Stretch Recovery Lounge was founded by Jake Feury, a former professional rugby player who dealt with years of back pain after injuries. Assisted stretching helped him move more comfortably, and he built the business around bringing that experience to everyday clients and athletes alike. The first studio opened in Ridgewood, New Jersey.
The brand describes itself as an assisted stretching and athletic recovery practice. Sessions are hands-on and one-on-one: a trained stretch practitioner moves the client through stretches aimed at stiffness, tightness, tension and mobility. Compression adds a recovery option between or after sessions. Clients book by appointment, and memberships come in tiers that include more sessions and better pricing on extra packages as the tier rises.
The brand grew across northern New Jersey suburbs and into Hoboken, and it has signed space in retail centers such as a shopping center in Bridgewater. Studios tend to be compact, which keeps rent and build-out lower than a full gym.
How lenders view an assisted stretching studio. Lenders see a membership business with recurring revenue once clients are signed, low equipment intensity and a small footprint. The main risks are staffing, since every session needs a trained practitioner, and the time it takes to fill the appointment book.
Stretch Recovery Lounge Franchise Costs
Item 7 of the FDD lists the estimated initial investment and each line item. We could not confirm current figures from the franchisor’s own materials, so this section explains each category and how lenders treat it.
Initial franchise fee
Disclosed in Item 5, the fee covers the license, training and opening support. It has no collateral value, so lenders count it against your cash injection or fund it inside an SBA loan.
Leasehold improvements
A stretch studio needs a reception and lounge area, semi-private or private stretch spaces, a recovery area for compression, storage and restrooms. Build-out depends on the space’s condition and any landlord allowance, and it is often the largest single cost.
Equipment and furnishings
Expect stretch tables or benches, compression systems, small recovery tools, front-desk technology, booking and point-of-sale software, furniture and signage.
Opening costs and working capital
Hiring and training stretch practitioners, pre-opening marketing, insurance, licenses and early payroll all come before the membership base can carry the studio. Item 7 shows how many months of additional funds the franchisor recommends.
Item 7 categories to confirm
- Initial franchise fee
- Leasehold improvements and design fees
- Stretch tables and recovery equipment
- Booking, point-of-sale and computer systems
- Furniture, fixtures and signage
- Staff recruiting and training
- Pre-opening and grand opening marketing
- Lease deposits, insurance and licenses
- Additional funds for the stated initial period
Ongoing Fees and How They Affect Your Loan
Item 6 lists the royalty, marketing or brand fund, technology fees and transfer and renewal fees. Percentage fees grow with revenue, while rent and core payroll stay fixed.
Lenders subtract every recurring fee, rent and practitioner payroll from projected membership and package revenue before deciding how much debt the studio can carry. Because each session uses a practitioner’s time, labor is the biggest variable. Projections should show how many practitioners you need at each membership level and how quickly members sign up.
Franchisor Requirements for New Owners
Stretch Recovery Lounge’s minimum net worth, liquid capital and experience requirements were not available to us from its own published materials. Ask the franchise team for current requirements, whether owners must be on site and how it trains practitioners.
Lenders apply their own tests: cash for the equity injection, reserves after closing, good credit and experience in fitness, wellness, hospitality, sales or management. Owners without a fitness background should show how they will hire and keep skilled practitioners.
Ways to Own a Stretch Recovery Lounge
A new studio. Most owners open a new location, which lenders underwrite on projections, the lease and the owner’s background. These deals fit fitness studio start-up financing.
Buying an existing studio. A resale brings members, trained staff and financial history. The franchisor must approve the transfer. Read our article on buying a boutique fitness studio, and see fitness business acquisition loans for financing.
Financing Options for a Stretch Recovery Lounge Franchise
SBA 7(a) loans
An SBA 7(a) loan can combine the franchise fee, build-out, equipment and working capital in one loan, which suits a small leased studio.
SBA 504 loans
The 504 program fits owner-occupied real estate and long-lived equipment. Stretch studios usually lease retail space, so 504 financing rarely applies.
Conventional term loans
Owners with collateral or an existing business may qualify for conventional business loans, particularly for a second studio.
Equipment financing
Stretch tables, compression systems and technology can be financed through fitness equipment financing and leasing, preserving cash for build-out and payroll.
Working capital and lines of credit
The first months are the most cash-hungry, as practitioners are paid while the appointment book fills. Fitness center working capital or a line of credit can cover payroll, rent and marketing during the ramp.
Seller financing on resales
On a resale, the seller may carry part of the price as a note. Lenders generally require seller notes to be subordinate to the senior loan, and SBA rules may limit how they are structured.
SBA Loans for Stretch Recovery Lounge Franchisees
Stretch Recovery Lounge is listed on the SBA Franchise Directory under code S8624, with no special note. The listing means its franchise documents have been reviewed for SBA eligibility, so lenders can consider SBA-guaranteed loans for its owners without a separate review of the franchise relationship. It does not approve any borrower.
The SBA 7(a) program maximum is currently $5 million, though program rules can change. Our article on SBA loans for gyms and studios explains how lenders approach fitness deals, and the SBA loan calculator helps you test payments.
When applying, bring the FDD and franchise agreement, a personal financial statement, tax returns, a resume, build-out and equipment quotes, the proposed lease and a business plan.
How Lenders Evaluate a Stretch Recovery Lounge Deal
Personal credit and financial history
Lenders review credit and existing obligations and generally require personal guarantees from significant owners.
Net worth and liquidity
Expect to show an equity injection and reserves that can carry payroll and rent while memberships grow.
Industry and management experience
Fitness, wellness, hospitality or sales management experience helps. Lenders want to know who will recruit, train and schedule practitioners.
Business plan and projections
Base projections on local demographics, nearby studios and gyms, the membership tier mix, sessions per member, practitioner capacity and retention. Show how many appointment hours the studio can sell each week and how that grows.
The FDD and franchise agreement
Lenders read Items 5, 6, 7, 10, 17, 19 and 20. Item 19 shows whether financial performance representations are provided. Review Items 3 and 4 with your attorney. Our article on the FDD in franchise financing explains what lenders look for.
The lease
Lenders want a lease term that covers the loan, reasonable rent and clarity on tenant improvement allowances.
Historical financials on a resale
For an existing studio, expect to provide tax returns, profit and loss statements, membership reports and an equipment list.
Staffing: The Real Engine of a Stretch Studio
Unlike a gym where members work out on their own, every Stretch Recovery Lounge session needs a trained practitioner. That makes recruiting, training and scheduling the core operational and financial challenge. Ask the franchisor how practitioners are trained, how long it takes a new hire to be ready and how studios handle peak morning and evening demand.
Lenders will look for a staffing plan that ties payroll to bookings. Build in training time before opening and a plan for turnover, since losing a popular practitioner can affect member retention.
Multi-Unit Growth and Development Agreements
The brand’s growth across nearby New Jersey towns shows how studios can cluster in one region, sharing marketing and a pool of practitioners. Lenders usually want the first studio stable before funding the next and look at combined cash flow and debt. Our article on multi-unit franchise financing explains how lenders handle growth.
Real-World Scenarios
The former athlete. A former college athlete opens a studio with an SBA 7(a) loan covering the fee, build-out, stretch tables and working capital, and markets to local sports clubs.
The wellness entrepreneur. An owner with a personal training background adds a studio and leans on existing clients for early memberships. The lender focuses on her staffing plan.
The resale buyer. A buyer acquires an existing studio with an established membership and finances it on historical cash flow, keeping reserves to retain key practitioners.
Common Mistakes to Avoid
- Opening without enough trained practitioners to meet demand.
- Underestimating payroll during the membership ramp.
- Signing a lease before the franchisor and lender review it.
- Overbuilding a studio for its expected membership.
- Budgeting without the current FDD’s Item 7.
These errors can weaken a Stretch Recovery Lounge franchise loan request. See our article on fitness center loan mistakes for more.
Next Steps to Finance Your Stretch Recovery Lounge Franchise
Step 1: Request the FDD. Review Items 3 through 7, 10, 17, 19 and 20 with a franchise attorney.
Step 2: Confirm requirements. Ask about net worth, liquidity, owner involvement and training.
Step 3: Find a site. Look for visible space near active, health-conscious residents and workers.
Step 4: Get quotes. Price build-out, stretch tables, compression systems and technology.
Step 5: Build projections. Model memberships, practitioner capacity, payroll and every Item 6 fee.
Step 6: Talk with a financing specialist. Compare SBA 7(a), equipment financing and working capital options, then align closing with the lease and opening date.
Stretch Recovery Lounge Franchise Loan FAQs
How much does a Stretch Recovery Lounge franchise cost?
The estimated initial investment is disclosed in Item 7 of the FDD. Request the current edition and get local build-out quotes before setting a budget.
What are the franchise fee and royalty?
They appear in Items 5 and 6. Lenders deduct the royalty and marketing fund from projected revenue when sizing a Stretch Recovery Lounge franchise loan.
Is Stretch Recovery Lounge eligible for SBA loans?
Yes. It is listed on the SBA Franchise Directory under code S8624, with no special note, so owners can be considered for SBA financing subject to lender approval.
How much liquid capital do I need?
The franchisor’s published materials we reviewed do not list a figure. Ask the franchise team, and expect lenders to require an equity injection plus reserves.
Can I finance the stretch tables and compression equipment separately?
Yes. Equipment and technology can be financed through equipment loans or leases.
Can I buy an existing studio?
Yes, with franchisor approval. Lenders underwrite resales on historical financials and membership data.
Do I need a fitness background?
Not necessarily, but lenders and the franchisor will want a strong plan for hiring and training practitioners.
Does the franchisor offer financing?
Any franchisor financing is disclosed in Item 10 of the FDD. Most owners arrange outside loans.
How long is the franchise term?
Term, renewal and transfer conditions appear in Item 17. Lenders prefer the remaining term to exceed the loan term.
Final Thoughts
Stretch Recovery Lounge offers a compact, appointment-based studio built around one-on-one stretching and recovery. Buyers who get the current FDD, plan carefully for staffing and the membership ramp and use the brand’s SBA listing wisely are well placed to secure a Stretch Recovery Lounge franchise loan.
US Professional Funding helps franchise owners finance studio start-ups, acquisitions, equipment and working capital. Learn more about our franchise financing and fitness center loans.
