STRIDE Health Franchise Prices, Charges, Revenues, Earnings (2023 Evaluation)

On this unique Franchise Chatter FDD Speak put up, you’ll be taught the next:

Part I – Estimated preliminary funding (franchise prices) for a STRIDE Health franchise, primarily based on Merchandise 7 of the corporate’s 2022 FDD

Part II – Preliminary franchise payment, royalty payment, and advertising payment for a STRIDE Health franchise, primarily based on Gadgets 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned STRIDE Health shops at the beginning of the yr and the top of the yr for 2019, 2020, and 2021, primarily based on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the STRIDE Health franchise alternative

Part V – Presentation and evaluation of STRIDE Health’s monetary efficiency representations (common revenues and/or income), primarily based on Merchandise 19 of the corporate’s 2022 FDD, together with info on the:

• common gross income for every calendar month comprising the 2021 calendar yr for the franchised STRIDE studios that have been: (i) owned and operated by a system franchisee over the whole lot of the measurement interval; and (ii) working for at the very least 12 months past their comfortable opening date as of the top of the calendar month at problem (the “Disclosed Studios”)

• common gross income for every calendar month comprising the 2021 calendar yr for the Disclosed Studios that scheduled a minimal of 115 courses per calendar month in accordance with STRIDE’s really helpful requirements and specs (the “Totally Scheduled Disclosed Studios”)

• common gross income for every calendar month comprising the 2021 calendar yr for the Disclosed Studios that scheduled lower than 115 courses per calendar month, which doesn’t observe STRIDE’s really helpful requirements and specs (the “Minimally Scheduled Disclosed Studios”)

Part VI – Key ratios, comparables, computations, and analyses for the STRIDE Health franchise alternative (unique content material for Platinum subscribers)

Part I – STRIDE Health Franchise Prices

• Preliminary Franchise Charge:  $60,000
• Journey and Dwelling Bills Whereas Coaching:  $500 to $3,000
• Actual Property/Lease:  $22,500 to $52,500
• Internet Leasehold Enhancements:  $101,250 to $178,250
• Signage:  $15,000 to $20,000
• Insurance coverage:  $1,550 to $2,550
• Train Tools Lease (3 months):  $25,400 to $28,000
• Retail Stock Bundle for Presale and Gentle Opening:  $12,000
• Furnishings, Fixtures, and Associated Provides:  $29,500
• Audio Visible Tools:  $46,000
• Preliminary Advertising and marketing Spend (together with sure Opening Assist Program prices):  $15,000 to $20,000
• Transport and Set up:  $24,000 to $32,000
• Licensed Coach Coaching and Associated Bills:  $8,000
• Know-how Charge – 1 Month Previous to Opening Plus First 3 Months and Music Licensing Charge (3 months):  $1,712
• Extra Funds for First 3 Months:  $10,000 to $40,000
• Whole Estimated STRIDE Franchise Prices:  $372,412 to $533,512

Part II – STRIDE Health’s Preliminary Franchise Charge, Royalty Charge, and Advertising and marketing Charge

• Preliminary Franchise Charge:  $60,000
• Royalty:  7% of Gross Gross sales generated by your Franchised Enterprise
• Model Growth Fund Contributions:  the then-current contribution STRIDE designates you could make to the Fund; presently, 2% of the Gross Gross sales generated by your Franchised Enterprise
• Native Promoting Requirement:  $1,500 per 30 days

Part III – Variety of Franchised and Firm-Owned STRIDE Health Shops

Franchised

2019

• Shops on the Begin of the 12 months:  0
• Shops on the Finish of the 12 months:  1
• Internet Change:  +1

2020

• Shops on the Begin of the 12 months:  1
• Shops on the Finish of the 12 months:  3
• Internet Change:  +2

2021

• Shops on the Begin of the 12 months:  3
• Shops on the Finish of the 12 months:  10
• Internet Change:  +7

Firm-Owned

2019

• Shops on the Begin of the 12 months:  1
• Shops on the Finish of the 12 months:  0
• Internet Change:  -1

2020

• Shops on the Begin of the 12 months:  0
• Shops on the Finish of the 12 months:  1
• Internet Change:  +1

2021

• Shops on the Begin of the 12 months:  1
• Shops on the Finish of the 12 months:  1
• Internet Change:  0

Part IV – Information Updates on the STRIDE Health Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Earnings) for the STRIDE Health Franchise (Merchandise 19, 2022 FDD)

• In Half 1 of this Merchandise, STRIDE discloses the common month-to-month Gross Income generated in every calendar month comprising the 2021 calendar yr (every, a “Calendar Month” and collectively, the “Measurement Interval”) amongst the franchised Studios that have been: (i) owned and operated by a System franchisee over the whole lot of the Measurement Interval; and (ii) working for at the very least 12 months past their comfortable opening date as of the top of that Calendar Month (the “Disclosed Studios”).

• In Half 1, the Relevant Subset for a given Calendar Month excludes any Studio that was not open for at the very least 12 months past its comfortable opening date as of the top of that Calendar Month (the “Excluded Studios”).

• In Half 2 of this Merchandise, STRIDE discloses two completely different charts. The primary chart (Half 2A) discloses the common month-to-month Gross Income generated throughout the Measurement Interval amongst Disclosed Studios that scheduled a minimal of 115 courses per Calendar Month in accordance with STRIDE’s really helpful requirements and specs (the “Totally Scheduled Disclosed Studios”).

• The second chart (Half 2B) discloses the common month-to-month Gross Income generated throughout the Measurement Interval amongst Disclosed Studios that scheduled lower than 115 courses per Calendar Month, which doesn’t observe STRIDE’s really helpful requirements and specs (the “Minimally Scheduled Disclosed Studios”). The Excluded Studios are excluded from Half 2 of this Merchandise 19.

Half 1 – Common Gross Income Amongst the Relevant Subset of All Disclosed Studios for Every Calendar Month Comprising the Measurement Interval

• January 2021 (1 Studio):  $26,561
• February 2021 (2 Studios):  $17,393
• March 2021 (2 Studios):  $23,177
• April 2021 (2 Studios):  $23,659
• Might 2021 (2 Studios):  $33,420
• June 2021 (3 Studios):  $29,379
• July 2021 (3 Studios):  $25,663
• August 2021 (3 Studios):  $24,861
• September 2021 (3 Studios):  $25,704
• October 2021 (3 Studios):  $25,038
• November 2021 (3 Studios):  $30,246
• December 2021 (3 Studios):  $24,137

• Whole Annual Gross Income (January 2021 to December 2021):  $309,238

Half 2A – Common Gross Income Amongst the Relevant Subset of All Totally Scheduled Disclosed Studios for Every Calendar Month Comprising the Measurement Interval

• January 2021 (0 Studios):  N/A
• February 2021 (1 Studio):  $8,193
• March 2021 (1 Studio):  $12,582
• April 2021 (1 Studio):  $35,930
• Might 2021 (1 Studio):  $52,127
• June 2021 (1 Studio):  $53,283
• July 2021 (1 Studio):  $44,291
• August 2021 (1 Studio):  $43,446
• September 2021 (1 Studio):  $46,243
• October 2021 (3 Studios):  $25,038
• November 2021 (2 Studios):  $37,728
• December 2021 (2 Studios):  $29,145
• Whole Annual Gross Income (January 2021 to December 2021):  $388,006

Half 2B – Common Gross Income Amongst the Relevant Subset of All Minimally Scheduled Disclosed Studios for Every Calendar Month Comprising the Measurement Interval

• January 2021 (1 Studio):  $26,561
• February 2021 (1 Studio):  $26,594
• March 2021 (1 Studio):  $33,773
• April 2021 (1 Studio):  $11,389
• Might 2021 (1 Studio):  $14,712
• June 2021 (2 Studios):  $17,427
• July 2021 (2 Studios):  $16,348
• August 2021 (2 Studios):  $15,569
• September 2021 (2 Studios):  $15,435
• October 2021 (0 Studios):  N/A
• November 2021 (1 Studio):  $15,283
• December 2021 (1 Studio):  $14,121
• Whole Annual Gross Income (January 2021 to December 2021):  $207,212

• The time period “Gross Income” means the full income generated by a given Disclosed Studio over the Measurement Interval, together with all income generated from the sale and provision of any and all Accredited Providers at, from, or in any other case by means of, that Studio.

• The time period “Gross Income” (i) excludes gross sales tax (that Studio proprietor should pay on to the suitable taxing authority), and (ii) doesn’t account for income the Disclosed Studios might have generated by offering the Instructor Coaching Program.

• The “Common Gross Income” determine was calculated by taking the sum of all of the Gross Income generated by the Disclosed Studios and dividing that quantity by the variety of Disclosed Studios within the applicable subset at problem.

• This Merchandise doesn’t comprise any info associated to the working prices and bills which can be incurred in reference to the institution and/or operation of a Franchised Enterprise. Working prices and bills differ from enterprise to enterprise and can embody, amongst different issues, the royalty and different charges you might be required to pay to STRIDE and/or its Accredited Provider(s) in connection together with your Franchised Enterprise.

• The figures supplied on this Merchandise don’t account for amortization, depreciation, curiosity on debt companies, and/or any tax legal responsibility.

• When reviewing this Merchandise 19 and evaluating STRIDE’s franchise providing typically, it is extremely vital to notice the next traits of one of many three Disclosed Studios described on this Merchandise 19 (as in comparison with a brand new Franchised Enterprise):

• a. The territory whereby the Disclosed Studio operates is positioned in Pasadena, California, the place STRIDE’s model might have obtained a status and garnered some goodwill amongst the related target market (as in comparison with one other area of america the place there aren’t any Studio areas). This Disclosed Studio has been working using the Proprietary Marks and System since earlier than STRIDE commenced franchising in February 2019.

• b. The Disclosed Studio was not required to pay STRIDE or some other occasion an Preliminary Franchise Charge or the opposite preliminary charges described in Merchandise 5 of the Disclosure Doc.

• c. The Disclosed Studio makes use of a complete of 25 treadmills, which is what STRIDE expects and assumes its System franchisees will use when equipping and working their franchised Studio. There aren’t any such disclosures within the chart above detailing such lease funds or any of the opposite working prices and bills that the Disclosed Studio incurred in reference to its operations.

• d. Sure facets of the Disclosed Studio are primarily managed on a day-to-day foundation by a single particular person that’s engaged by the Disclosed Studio to handle such issues. Whereas this engagement could be just like you participating a “Designated Supervisor” or different third occasion to help in managing sure facets of your Franchised Enterprise, STRIDE doesn’t count on that you can be participating such a 3rd occasion on the outset of working your new Franchised Enterprise (except you’re a multi-unit proprietor).

Part VI – STRIDE Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️