StretchLab - 2021-04-10 - FDD - Xponential Fitness

FRANCHISE DISCLOSURE DOCUMENT
Stretch Lab Franchise, LLC

a Delaware limited liability company
17877 Von Karman Avenue, Suite 100
Irvine, CA 92614
(949) 326-9765
[email protected]
www.stretchlab.com
Stretch Lab Franchise, LLC (“we,” “us,” or “our”) offers for sale a franchise to establish and operate a
fitness studio that offers and provides stretching classes and related therapy services under our then-current
proprietary marks (collectively, the “Marks”), including our current primary mark STRETCH LAB (each, a
“Studio”).
The estimated initial investment necessary to begin operations of a Studio franchise ranges from $157,800
to $297,600. This amount includes $83,275 to $85,275 that must be paid to the franchisor or its affiliate prior to
opening.
The estimated initial investment necessary to develop three (3) or more Studios under our form of area
development agreement depends on the number of franchises we grant you the right to open. By way of example,
the estimated initial investment associated with acquiring the right to develop three (3) Studios pursuant to an area
development agreement and necessary to begin operations of the first of those Studios ranges from $232,800 to
$372,600, which includes (a) a development fee amounting to $135,000 payable to us upon signing, and (b) the
initial investment to begin operations of the initial franchised Studio you are required to develop within your
awarded development area.
This Disclosure Document summarizes certain provisions of your Franchise Agreement and other
information in plain English. Read the disclosure document and all accompanying agreements carefully. You
must receive this disclosure document at least 14 calendar days before you sign a binding agreement with, or make
any payments to the Franchisor or an affiliate in connection with the proposed franchise sale. Note, however,
that no government agency has verified the information contained in this document.
You may wish to receive your Disclosure Document in another format that is more convenient for you.
To discuss the availability of disclosures in different formats, contact Louis DeFrancisco at Stretch Lab Franchise,
LLC, 17877 Von Karman Avenue, Suite 100, Irvine, CA 92614, and at (949) 326-9765.
The terms of your contract will govern your franchise relationship. Don’t rely on the disclosure document
alone to understand your contract. Read all of your contract carefully. Show your contract and this disclosure
document to an advisor, like a lawyer or accountant.
Buying a franchise is a complex investment. The information in this disclosure document can help you
make up your mind. Information about comparisons of franchisors is available. More information on franchising,
such as “A Consumer’s Guide to Buying a Franchise,” which can help you understand how to use this Disclosure
Document, is available from the Federal Trade Commission. You can contact the FTC at 1-877-FTC-HELP or by
writing to the FTC at 600 Pennsylvania Avenue, NW, Washington, DC 20580. You can also visit the FTC’s home
page at www.ftc.gov for additional information. There may also be laws on franchising in your state. Call your state
agency listed on Exhibit B or visit your public library for other sources of information on franchising.
THE ISSUANCE DATE OF THIS DISCLOSURE DOCUMENT IS: APRIL 10, 2021.
This document was downloaded from franchimp.com. All the information on this website is published in good faith and for general information purpose only. FranChimp.com does not make any warranties about the completeness, reliability, and
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How to Use This Franchise Disclosure Document
Here are some questions you may be asking about buying a franchise and tips on how to find more
information:
QUESTION WHERE TO FIND INFORMATION

How much can I earn? Item 19 may give you information about
outlet sales, costs, profits or losses. You
should also try to obtain this information from
others, like current and former franchisees.
You can find their names and contact
information in Item 20 or Exhibit H.
How much will I need to invest? Items 5 and 6 list fees you will be paying to
the franchisor or at the franchisor’s direction.
Item 7 lists the initial investment to open.
Item 8 describes the suppliers you must use.
Does the franchisor have the financial Item 21 or Exhibit C includes financial
ability to provide support to my business? statements. Review these statements
carefully.
Is the franchise system stable, growing, or Item 20 summarizes the recent history of the
shrinking? number of company-owned and franchised
outlets.
Will my business be the only Stretch Lab Item 12 and the “territory” provisions in the
business in my area? franchise agreement describe whether the
franchisor and other franchisees can compete
with you.
Does the franchise have a troubled legal Items 3 and 4 tell you whether the franchisor
history? or its management have been involved in
material litigation or bankruptcy proceedings.
What’s it like to be a Stretch Lab Item 20 or Exhibit H lists current and former
franchisee? franchisees. You can contact them to ask
about their experiences.
What else should I know? These questions are only a few things you
should look for. Review all 23 Items and all
Exhibits in this disclosure document to better
understand this franchise opportunity. See the
table of contents.
What You Need To Know About Franchising Generally
Continuing responsibility to pay fees. You may have to pay royalties and other fees even if you are
losing money.
Business model can change. The franchise agreement may allow the franchisor to change its manuals
and business model without your consent. These changes may require you to make additional
investments in your franchise business or may harm your franchise business.
Supplier restrictions. You may have to buy or lease items from the franchisor or a limited group of
suppliers the franchisor designates. These items may be more expensive than similar items you could
buy on your own.
Operating restrictions. The franchise agreement may prohibit you from operating a similar business
during the term of the franchise. There are usually other restrictions. Some examples may include
controlling your location, your access to customers, what you sell, how you market, and your hours of
operation.
Competition from franchisor. Even if the franchise agreement grants you a territory, the franchisor
may have the right to compete with you in your territory.
Renewal. Your franchise agreement may not permit you to renew. Even if it does, you may have to sign
a new agreement with different terms and conditions in order to continue to operate your franchise
business.
When your franchise ends. The franchise agreement may prohibit you from operating a similar
business after your franchise ends even if you still have obligations to your landlord or other creditors.
Some States Require Registration
Your state may have a franchise law, or other law, that requires franchisors to register before
offering or selling franchises in the state. Registration does not mean that the state recommends that
franchise or has verified the information in this document. To find out if your state has a registration
requirement, or to contact your state, use the agency information in Exhibit B.
Your state also may have laws that require special disclosures or amendments be made to your
franchise agreement. If so, you should check the State Specific Addenda. See the Table of Contents for
the location of the State Specific Addenda.
Special Risks to Consider About This Franchise
Certain states require that the following risk(s) be highlighted:
1. Out-of-State Dispute Resolution. The franchise agreement requires you to resolve disputes with
the franchisor by mediation, arbitration and/or litigation only in California. Out-of-state
mediation, arbitration, or litigation may force you to accept a less favorable settlement for
disputes. It may also cost more to mediate, arbitrate, or litigate with the franchisor in California
than in your own states.
2. Spousal Obligation. Your spouse must sign a document that makes your spouse liable for all
financial obligations under the franchise agreement, even if your spouse has no ownership
interest in the franchise. This guarantee will place both your and your spouse’s marital and
personal assets (perhaps including your house) at risk if your franchise fails.
3. Minimum Sales Performance. You must maintain sales performance levels. Your inability to
maintain these levels may result in loss of any territorial rights you are granted, termination of
your franchise, and loss of your investment.
4. Limited Operating History. The franchisor is at an early stage of development and has a limited
operating history. This franchise is likely to be a riskier investment than a franchise in a system
with a longer operating history.
Certain states may require other risks to be highlighted. Check the “State Specific Addenda” (if
any) to see whether your state requires other risks to be highlighted.
TABLE OF CONTENTS
PAGE
ITEM 1 THE FRANCHISOR, ANY PARENTS, PREDECESSORS AND AFFILIATES ................................. 1
ITEM 2 BUSINESS EXPERIENCE ......................................................................................................................... 5
ITEM 3 LITIGATION ............................................................................................................................................... 6
ITEM 4 BANKRUPTCY ........................................................................................................................................... 7
ITEM 5 INITIAL FEES ............................................................................................................................................. 7
ITEM 6 OTHER FEES .............................................................................................................................................. 8
ITEM 7 ESTIMATED INITIAL INVESTMENT ................................................................................................. 14
ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES ................................................. 20
ITEM 9 FRANCHISEE’S OBLIGATIONS ........................................................................................................... 24
ITEM 10 FINANCING ............................................................................................................................................. 26
ITEM 11 FRANCHISOR’S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING... 26
ITEM 12 TERRITORY ............................................................................................................................................ 41
ITEM 13 TRADEMARKS ...................................................................................................................................... 44
ITEM 14 PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION ............................................... 45
ITEM 15 OBLIGATION TO PARTICIPATE IN THE OPERATION OF THE FRANCHISE BUSINESS ... 46
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL ........................................................ 47
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION .................................. 48
ITEM 18 PUBLIC FIGURES................................................................................................................................... 59
ITEM 19 FINANCIAL PERFORMANCE REPRESENTATIONS ..................................................................... 59
ITEM 20 OUTLETS AND FRANCHISEE INFORMATION .............................................................................. 65
ITEM 21 FINANCIAL STATEMENTS ................................................................................................................. 65
ITEM 22 CONTRACTS ........................................................................................................................................... 69
ITEM 23 RECEIPTS ................................................................................................................................................ 69
Exhibits
A. FRANCHISE AGREEMENT AND EXHIBITS

B. LIST OF STATE AGENTS FOR SERVICE OF PROCESS AND STATE ADMINISTRATORS
C. FINANCIAL STATEMENTS
D. STATEMENT OF PROSPECTIVE FRANCHISEE
E. TABLE OF CONTENTS OF MANUAL
F. FORM OF GENERAL RELEASE
G. STATE SPECIFIC ADDENDA
H. LIST OF FRANCHISEES AND FRANCHISEES THAT LEFT OUR SYSTEM
I. DEVELOPMENT AGREEMENT
J. STATE EFFECTIVE DATES
K. RECEIPTS
ITEM 1
THE FRANCHISOR, ANY PARENTS, PREDECESSORS AND AFFILIATES
To simplify the language, this disclosure document uses “we,” “us,” “our,” “Franchisor” or “Stretch Lab”
to mean Stretch Lab Franchise, LLC, the franchisor. “You” means the person, corporation, partnership or other
entity that buys the franchise. Terms not defined in this Disclosure Document (including various capitalized
terms) are defined in the Franchise Agreement attached as Exhibit A to this Disclosure Document (the “Franchise
Agreement”).
Franchisor
We do business under the name Stretch Lab Franchise, LLC, or in some cases, our then-current proprietary
marks. We do not do business under any other name. Our principal business address is 17877 Von Karman
Avenue, Suite 100, Irvine, CA 92614, and our business phone number is (949) 326-9765. We are a Delaware
limited liability company formed on October 3, 2017. We began offering franchises for the right to operate
STRETCH LAB Studios as of December 29, 2017.
Except as provided in this Item, we have not offered and do not offer franchises in any other line of
business and we are not otherwise involved in any substantive business activity, including operating any
businesses of the type to be operated by the franchisee.
Parent and No Predecessor
Xponential Fitness, LLC (“Xponential”) is our direct parent company. Xponential is a Delaware limited
liability company with a principal business address at 17877 Von Karman Avenue, Suite 100, Irvine, California
92614. Xponential, via an intermediate holding company, is controlled by H&W Franchise Holdings, LLC
(“H&W”), a Delaware entity with the same principal business address as Xponential. H&W is controlled by H&W
Investco LP (“H&W Investco”), a limited partnership formed under the laws of Delaware with the same principal
address as Xponential. H&W Investco is controlled and indirectly owned by MGAG LLC, a Delaware limited
liability company with the same principal business address as Xponential. None of these entities: (i) provide
products or services to our franchisees directly; or (ii) have directly offered or sold franchises in any line of
business.
Affiliates
Our affiliate, CycleBar Franchising, LLC (“CBF”), an Ohio limited liability company with a principal
business address of 299 E 6th St., Floor 1, Cincinnati, Ohio 45202, franchises indoor cycling studios under the
CYCLEBAR® marks. CBF began franchising CYCLEBAR studios in January 2015. As of December 31, 2020,
there were 208 franchised CYCLEBAR studios in operation. CBF has also offered area representative franchise
since March 2017, and CBF had one area representative open and in operation as of December 31, 2020.
Our affiliate, CycleBar Canada Franchising, LLC (“CycleBar Canada”), a British Columbia unlimited
liability company with a registered office at 2200 HSBC Building, 885 West Georgia Street, Vancouver, BC V6C
3E8, offers CYCLEBAR franchises in Canada. Our affiliate, CycleBar International Inc. (“CycleBar
International”) an Ohio corporation with a principal business address of 299 E 6th St., Floor 1, Cincinnati, OH
45202 offers CYCLEBAR franchises in other international territories. CycleBar Canada has offered franchises in
Canada since August 2015, and CycleBar International has offered franchises outside the United States since
February 2016.
Our affiliate, Club Pilates Franchise, LLC (“CP Franchising”), a Delaware limited liability company with
a principal business address at 17877 Von Karman Ave., Suite 100, Irvine, California 92614, franchises fitness
studios that provide Pilates and other exercise classes under the CLUB PILATES® marks. CP Franchising began
©2021 Stretch Lab Franchise, LLC

2021 Franchise Disclosure Document 1
offering franchises in March 2015 and, as of December 31, 2020, there were 601 franchised CLUB PILATES
studios in operation.
Our affiliate, AKT Franchise, LLC (“AKT Franchising”), a Delaware limited liability company with a
principal business address at 17877 Von Karman Ave., Suite 100, Irvine, California 92614, franchises fitness
studios that provide indoor fitness classes/instruction through a combination of circuit training, dance cardio,
Pilates, and yoga under the AKT® marks. AKT Franchising began franchising at some point in July 2018. As of
December 31, 2020, there were 14 franchised AKT studios actively open and providing classes.
Our affiliate, PB Franchising, LLC (“PB Franchising”), a Delaware limited liability company with a
principal business address at 17877 Von Karman Ave., Suite 100, Irvine, California 92614, franchises fitness
studios that provide indoor fitness classes/instruction through a combination of Pilates, weights and ballet,
including using a ballet barre, under the PURE BARRE marks. PB Franchising commenced franchising as the
franchising arm of the brand in October 2012 and, as of December 31, 2020, there were 571 franchised PURE
BARRE studios actively open and providing classes.
Our affiliate, Row House Franchise, LLC (“Row House Franchise”), a Delaware limited liability company
with a principal business address at 17877 Von Karman Ave., Suite 100, Irvine, California 92614, franchises
rowing and free weight exercise classes under the ROW HOUSE® marks. Row House Franchise began
franchising ROW HOUSE studios at some point in early 2018. As of December 31, 2020, there were 69 franchised
ROW HOUSE studios actively open and providing services.
Our affiliate, Stride Franchising, LLC (“Stride Franchising”), a Delaware limited liability company with
a business address at 17877 Von Karman Ave., Suite 100, Irvine, California 92614, franchises fitness studios that
provide indoor running classes and related fitness classes and instructions through the use of treadmills and live
instruction under its then-current proprietary marks, including its current primary mark STRIDE. As of December
31, 2020, there were 3 franchised STRIDE studios actively open and providing classes.
Our affiliate, Yoga Six Franchise, LLC (“Y6 Franchising”), a Delaware limited liability company with a
principal business address of 17877 Von Karman Ave., Suite 100, Irvine, California 92614, franchises fitness
studios that offer and provide indoor yoga classes/instruction and other related exercise classes under the YOGA
SIX® marks. Y6 Franchising began offering franchises for YOGA SIX studios in September 2018. As of
December 31, 2020, there were 77 YOGA SIX studios actively open and providing classes.
Our affiliate, Rumble Franchise, LLC (“Rumble Franchise”), a Delaware limited liability company with
a principal business address of 17877 Von Karman Ave., Suite 100, Irvine, California 92614, franchises fitness
studios that offer and provide boxing classes/instruction and other related exercise classes under the RUMBLE®
marks. Rumble Franchise began offering franchises for RUMBLE studios in March 2021. As such, as of
December 31, 2020, there were no RUMBLE studios actively open and providing classes.
We have three (3) other affiliates that previously offered franchises outside of the fitness industry that no
longer require disclosure because they ceased franchising in 2019 and, as of the Issue Date, they have no plans to
resume offering franchises in our next fiscal year.
As disclosed in Item 12 of this Disclosure Document, our Parent may acquire or develop other affiliate
franchisor brands, whether in the fitness industry or otherwise, in the future at its discretion.
Except as disclosed above, we currently have no parents, predecessors or affiliates required to be disclosed
in this Item.

Agent for Service of Process
Our agents for service of process are disclosed in Exhibit B.
The Franchised Business We Offer
We offer for sale a franchise to operate a franchised Studio (each, a “Franchised Business”) pursuant to
the terms of our franchise agreement attached to this Disclosure Document as Exhibit A (the “Franchise
Agreement”). We expect that a Studio will typically be located in a retail shopping center, and this franchise
offering assumes that the size of a typical Studio will be 1,200 to 1,500 square feet in size. We may, however,
consider alternative sites, on a case-by-case basis. Under the Franchise Agreement, we will also grant you the
right to operate your Franchised Business within a designated geographical area wherein you will also be able to
actively promote the Franchised Business and solicit new clientele prior to opening and on an ongoing basis once
you commence operations (the “Designated Territory”). If you own an existing fitness facility and meet our other
qualifications, you may convert your existing business to a Studio that utilizing our Marks and System. A
converted Studio may encounter lower investment requirements than the investment required in connection with
establishing a Studio from the ground up.
Each Studio will offer private and group stretching classes and related therapy services, as well as other
services that we authorize (collectively, the “Approved Services”). All classes at your Studio will typically be
paid for and scheduled online via the Internet. The Approved Services must be provided by individual(s) that
complete a proprietary training program that we refer to in this Disclosure Document as our “Flexologist Training
Program.” You must have at least one (1) instructor that has successfully completed this Flexologist Training
Program (each, an “Authorized Flexologist”) on-site at your Studio during all times of operation to provide these
Approved Services. We may require instructors to sign a form of confidentiality and non-solicitation agreement
as condition to attending the Flexologist Training Program and/or becoming an Authorized Flexologist.
Each of your instructors must complete the Flexologist Training Program before they can become an
Authorized Flexologist. We will provide the Flexologist Training Program to the initial instructor(s) you designate
prior to opening your Studio, and either you or your instructor will be required to (a) pay us our then-current
training fee associated with this Program (the “FTP Tuition Fee”) as consideration for providing this Program and
corresponding testing, and (b) cover the costs associated with attending this Program at one (1) of our corporate
training locations.
If you wish for any of your Authorized Flexologists to provide the Flexologist Training Program to
subsequent instructors or other clientele at your Studio, that Authorized Flexologist must attend and complete our
master training (the “Master Training”) at which time he/she will be a master trainer eligible to provide the
Flexologist Training Program to others at your Studio (a “Master Trainer”) as part of your Approved Services.
The Studios are established and operated under a comprehensive design that includes a spacious interior,
at least 10 stretch benches, exercise equipment and apparatuses necessary to provide the Approved Services,
specifications, and procedures for operations; quality customer service; management and financial control;
training and assistance; and advertising and promotional programs (collectively, the “System”). The System
standards, specifications and procedures (collectively, the “System Standards”) are described in our confidential
operations manual (the “Manual”). The System and the Manual may be changed, improved and further developed
by us.
The Franchise Agreement is signed by us, by you, and by those of your principals whom we designate as
the principal franchisee-operator(s) (the “Designated Operator(s)”) of your Franchised Business. The Designated
Operator(s) (there may be up to two such individuals, but only one address to which we communicate in regards
to the franchise) named has the authority to act for you in all matters relating to your Studio, including voting
responsibilities. By signing the Franchise Agreement, you and the Designated Operator(s) agree to be individually

bound by certain obligations in the Franchise Agreement, including covenants concerning confidentiality and non-
competition, and to personally guarantee your performance under the Franchise Agreement. Depending on the
type of business activities, which must be fully disclosed prior to signing this document, in which you or your
Designated Operator(s) may be involved, we may require you or your Designated Operator(s) to sign additional
confidentiality and non-competition agreements.
You (or, if you are an entity, one of your Designated Operators) must at least complete the owner/operator
module (the “Owner/Operator Module”) of our proprietary initial training program (the “Initial Training
Program”) prior to the opening of the Franchised Business. The Initial Training Program focus on the operation
and management of a Studio from an owner perspective.
Multi-Unit Offering
We also offer qualified individuals and entities the right to open and operate multiple Franchised
Businesses within a designated geographical area (the “Development Area”) under our current form of
development agreement that is attached to this Disclosure Document as Exhibit J (the “Development Agreement”),
which will also outline a schedule or defined period of time in which you must open and commence operating
each Franchised Business (a “Development Schedule”).
You will be required to sign a Franchise Agreement for the initial Franchised Business we grant you the
right to open within the Development Area at the same time you sign your Development Agreement, and you will
need to sign our then-current form of franchise agreement for each of the Franchised Businesses you open under
the Development Schedule, which may differ from the current Franchise Agreement included with this Disclosure
Document.
You will be required to pay us a one-time development fee that will be calculated based on the number of
Franchised Businesses we grant you the right to open under the Development Agreement (the “Development
Fee”), but you will not be required to pay a franchise fee at the time you execute your franchise agreements for
each Franchised Business you timely develop under your Development Agreement.
Market and Competition
The market for fitness services and studios is crowded. You will face competition for members from other
stretching studios, gyms, personal trainers, yoga and Pilates studios, fitness/exercise centers and studios, health
clubs, barre-based studios, and even other System franchisees (subject to the territorial protections and restrictions
set forth in Item 12).
Applicable Regulations
Some states require that health/fitness facilities have a staff person available during all hours of operation
that is certified in basic cardiopulmonary resuscitation or other specialized medical training. Some state or local
laws may also require that health/fitness facilities have an automated external defibrillator and/or other first aid
equipment on the premises. At a minimum, your Studio will be subject to various federal, state and local laws, and
regulations affecting the business, including laws relating to zoning, access for the disabled, and safety and fire
standards. You may need the local fire marshals or other local, state or federal agency’s permission before you begin
operations.
Importantly, you must make sure you are aware of any and all employment laws, regulations and statutes
that are applicable where your franchised Studio is located – you will be solely responsible for all employment-
related decisions relevant to the Studio and must ensure that you consider such laws when (a) making employment
determinations and policies, and (b) ensuring compliance with all your franchise agreement terms and obligations to
us an independent contractor and franchisee. There may be local licensing and insurance requirements related to the

Studio operations, including workers’ compensation insurance, that you will need to ensure compliance with (in
addition to your insurance-related requirements in our franchise agreement).
You will also need to ensure that you comply with all music licensing laws and requirements related to any
music that your and/or your Authorized Flexologists determine to play at the Studio during classes or otherwise. You
should examine these and other laws before purchasing a franchise, as you are solely responsible for ensuring you
comply with such laws and that your Studio can be operated as required by these applicable laws and in accordance
with the terms of your Franchise Agreement.
You should consult with your attorney, and local and state agencies/authorities, before buying a
Franchise to determine if there are any specific regulations you must comply with as it relates to offering the
Studio products and services to consumers in your state, and consider the effects on you and the cost of
compliance. These requirements can affect a broad scope of your operations, including location selection, and
hiring of personnel, among other things. It is your sole responsibility to investigate any regulations in your area,
including those related to the establishment and operation of a Studio generally. If you enter into a franchise
agreement with us, you will be required to ensure that our directives, whether set forth in the Manuals or otherwise,
are carried out in a manner that is consistent with all applicable laws where your franchised Studio(s) is/are
located.
ITEM 2
BUSINESS EXPERIENCE
Louis (Lou) DeFrancisco: President
Mr. DeFrancisco has served as our President since our inception in December 2017. Mr. DeFrancisco previously
served as the President and COO for Get In Shape Franchise, Inc., located in Natick, MA, from July 2012 to
November 2017.
Martin Balcaitis: Chief Marketing Officer
Mr. Balcaitis has served as our Chief Marketing Officer since our inception in December 2017. Mr. Balcaitis
previously served as: (i) Director of Marketing at Retail Food Group, located in Santa Fe Springs, CA, from April
2016 to December 2017; and (ii) Senior Manager of Field Marketing at Denny’s Restaurants, located in Mission
Viejo, CA, from July 2011 to January 2015.
Jason Losco: Vice President of Franchise Development
Mr. Losco has served as our Vice President of Franchise Development since January 2019, but has served in this
role for Xponential (both located in Irvine, CA) since May 2018. From May 2016 to May 2018, Mr. Losco served
as National Director of Franchise Development for UFC Gym, located in Newport Beach, California, and from
April 2009 to June 2016, he served as Co-Founder of 10 Count Management in New York, New York.
Brad Walker: Chief Stretch Advisor
Mr. Walker has served as our Chief Stretch Advisor since 2019, a role he took on after serving as our Director of
Education with us since our inception in December 2017. Mr. Walker is also the founder and current CEO of The
Stretching Institute, located in Wallington, New Jersey, which he founded in October 2009. In 2015, Mr. Walker
also founded StretchCoach, an organization located in Wallington, NJ that is dedicated to the promotion and
teacher of stretching and flexibility.

Austin Martinez: Director of Education
Mr. Martinez has served as a Director of Education since January 2019. Prior to that time, Mr. Martinez held the
following roles: (i) Athletic Trainer at Chapman University, located in Orange, CA, from August 2017 through
December 2018; (ii) Sports Medicine and Performance Certified Athletic Trainer (ATC) for the Houston Astros
Major League Baseball team, located in Houston, TX, from June 2016 through September 2016; and (iii) Graduate
Assistant and Certified ATC at Ohio University, located in Athens, Ohio, from June 2015 through June 2017.
Prior to that time, Mr. Martinez was completing his master’s degree at Ohio University from 2015 to 2017 after
completing his bachelor’s degree at Chapman University from 2011 to 2015.
Ashley Larson: Director of Development
Ms. Larson has served as our Director of Development since August 2018. Prior to that time, Ms. Larson served
in the following roles: (i) Project Coordinator for Pinner Construction, located in Anaheim, CA, from April 2017
through August 2018; (ii) Project Coordinator for Fineline Woodworks, located in Costa Mesa, CA, from January
2016 through April 2017; and (iii) Project Administrator for Toll Brothers, located in Orange, CA, from October
2014 through January 2016. Prior to that time, Ms. Larson worked at CEPA from August 2013 to October 2014.
Verdine Baker: National Sales Director
Mr. Baker has been our National Sales Director since February 2018. Prior to that time, Mr. Baker served
as: (i) the District Manager for Crunch Fitness, located in San Francisco, California, from May 2017 to
February 2018; and (ii) as the General Manager for Crunch Fitness, also performing those duties in San
Francisco, California, from August 2008 to April 2017.
ITEM 3
LITIGATION
Concluded Action (Franchisor-Initiated Action)
Stretch Lab Franchise, LLC, et al. vs. Stretch Lab, LLC, et. al. (Case No.: 2:18-cv-07816). In October
2018, Franchisor filed a complaint (the “Complaint”) against the Stretch Lab, LLC and its principals (the
“Defendants”) in the United States District Court for the Central District of California (the “Court”) for breach of
contract, breach of implied covenant of good faith and fair dealing, trademark infringement and unfair competition
arising out of Defendants’ failure to comply with certain of their post-closing obligations under an asset purchase
agreement the parties entered into on November 15, 2017 (the “APA”), wherein Franchisor seeks (i) compensatory
damages in an amount to be determined at trial, (ii) reimbursement of costs incurred in connection with the action,
(iii) injunctive relief enjoining Defendants’ use of Franchisor’s Marks absent Defendants’ signing the agreed-
upon form of franchise agreement(s) prescribed in the APA to govern the Existing Studios; and (iv) declaratory
relief that Franchisor validly terminated consulting agreements with certain of the individual Defendants due to
Defendants’ respective breaches and failure to cure. Franchisor filed a motion for preliminary injunction with the
Court requesting immediate injunctive relief (the “Motion”). Defendants did not comply with the APA and instead
filed counterclaims against Franchisor for breach of contract and fraudulent inducement with respect to the APA,
conversion and purported violations of the California Franchise Invement Law and state franchise relationship
laws. Franchisor undertook to vigorously pursue its claims and defend against any counterclaims, and was
eventually able to negotiate an amicable resolution with Defendants where the Defendants assigned over all of
their rights, title and interest in and to (a) all assets and rights associated with the existing and active business
operations of the 4 Studios that were established, opened and being actively operated by Defendants, and (b) our
company or any of our affiliates, for consideration totaling $6.5M pursuant to the terms of an otherwise
confidential asset purchase agreement the parties executed. The proceeding was thereafter dismissed with
prejudice by the Court upon the mutual request of the parties.
Except as provided above, no litigation is required to be disclosed in this Item.

2021
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information on this website is published in good faith and for general
ITEM 4
BANKRUPTCY
No bankruptcy information is required to be disclosed in this Item.
ITEM 5
INITIAL FEES
Franchise Agreement
Initial Franchise Fee
You must pay to us a lump sum initial franchise fee of $60,000 (the “Initial Franchise Fee”) to establish
a single Studio under a Franchise Agreement (whether a start-up or conversion). The Initial Franchise Fee is due
upon the signing of the Franchise Agreement. The Initial Franchise Fee shall be fully earned by Franchisor upon
payment and is not refundable, in whole or in part, under any circumstance. Except as disclosed in this Item, we
uniformly impose the Initial Franchise Fee on all parties that are purchasing a single Franchised Business.
Pre-Sale and Soft Opening Inventory Package
Prior to opening your Studio, you must purchase opening inventory from us at a cost of approximately
$12,000 (“Pre-Sale and Soft Opening Inventory Package”), which includes apparel and other branded merchandise
that will be available for resale as part of your Approved Products, including t-shirts, towels, exercise clothing
and related accessories. The amount paid for this package is (a) due prior to or upon delivery of this Package (as
we determine appropriate), (b) non-refundable under any circumstances, and (c) imposed uniformly on our System
franchisees. As of the Issue Date, this package includes a gift card in the amount of $3,500 that can be redeemed
and used with one (1) or our third-party Approved Suppliers for inventory items you will be required to use and/or
sell in connection with your Franchised Business, which must be expended in full on or before the grand opening
of your franchised Studio.
Pre-Opening Instructor Training
We estimate that you will cover the FTP Tuition Fee (currently, $1,299 to $1,499 depending on how many
trainees you pre-pay for prior to opening) that we charge to provide our Flexologist Training Program (or “FTP”)
to your initial instructor(s) so that such instructor(s) can become Authorized Flexologists that offer and provide
the Approved Services at your Franchised Business.
Prior to opening, we estimate we will provide the FTP to up to eight (8) individuals – either at one (1) of
our corporate training locations or, if we determine appropriate, at your Studio by one of our Master Trainers –
and you will pay us between $11,000 and $13,000 in corresponding FTP Tuition Fee(s). You will not incur the
FTP Tuition Fee for a given instructor if you require that instructor to pay us that fee directly. The FTP Tuition
Fee disclosed in this Item is uniformly imposed and is non-refundable upon payment.
Once your Studio is open, you may engage an Authorized Flexologist that has completed Master Training
and become a Master Trainer to provide the Flexologist Training Program to subsequent instructors, as well as
Studio clientele, from and at your own Studio.
Technology Fee (1 Month Prior to Opening)
You will be required to commence paying us our then-current Technology Fee monthly, which is currently
$275/month as described more fully in Item 6 of this Disclosure Document below, in the calendar month preceding
the contemplated or required opening date of your franchised Studio.

As such, our standard franchise offering assumes and expects that you will pay us your first Technology Fee
amounting to $275 (for 1 month) prior to the opening of your Franchised Business. The fee is deemed fully earned
upon payment and is not refundable under any circumstances. We expect to impose this fee uniformly on new
System franchisees that are awarded any franchise rights in connection with this Disclosure Document.
*Note Regarding Fitness Equipment and Other FFE Package and Related Lease Payments
We strongly recommend, and our standard franchise offering assumes, that you will acquire the package of fitness
equipment and other furniture, fixtures and equipment we specify (collectively, the “Fitness Equipment and Other
FFE Package”) via a lease-to-own program that you enter into with a third-party provider of these programs. As
of the Issue Date, we do not have a specific Approved Supplier for such program services, but we do have a
number of providers we can recommend and/or that have worked with other System franchisees as of the Issue
Date. Any deposit and/or other lease payments made in connection with the leasing program for the Fitness
Equipment and Other FFE Package will be paid to a third-party provider you select for your program.
The estimated range of investment we estimate you will need to make under this kind of agreement prior to
opening and over the first three (3) months that your Franchised Business is operating are disclosed in more fully
Item 7 of this Disclosure Document below. If you decide to deviate from our standard franchise offering and elect
to purchase the components comprising this Package outright, then the estimated investment range for this package
is between $60,000 to $66,000 (depending on the size, layout and Studio location), including the shipping services
associated with certain components. In these circumstances, we may require that you pay us or, at our option, the
supplier we specifically designate prior to opening for this Fitness Equipment and Other FFE Package, which will
be deemed non-refundable upon payment.
Development Agreement
If we award you the right to develop three (3) or more Franchised Businesses within a given Development
Area, you must pay us a one-time Development Fee upon execution of your Development Agreement. Your
Development Fee will depend on the number of Franchised Businesses we grant you the right to open within the
Development Area, and is calculated as follows: (i) $45,000 per Franchised Business if you agree to open and
operate between three and five Franchised Businesses; (ii) $40,000 per Franchised Business if you agree to open
and operate between six and nine Franchised Businesses; and (iii) $35,000 per Franchised Business if you agree
to open and operate 10 or more Franchised Businesses.
You will be required to enter into our then-current form of franchise agreement for each Franchised
Business you wish to open under your Development Agreement, but you will not be required to pay any additional
Initial Franchise Fee at the time you execute each of these franchise agreements. If you enter into a Development
Agreement, you must execute our current form of Franchise Agreement for the first Studio we grant you the right
to open within your Development Area concurrently with the Development Agreement.
Your Development Fee will be deemed fully earned upon payment, and is not refundable under any
circumstances. The Development Fee described above is calculated and applied uniformly to all of our franchisees.
ITEM 6
OTHER FEES
Type of Fee Amount Due Date Remarks
Royalty 7% of Gross Sales1 Payable weekly based You will be required to start paying your
generated by your on the Gross Sales of Royalty once your Franchised Business begins
franchised Studio your Franchised collecting revenue from operations. We
Business during the reserve the right to collect your Royalty on a
preceding business different interval (for example, monthly).

week
Brand 2% of Gross Sales Payable weekly at the We have established a brand development
Development generated by your same time and in the Fund that is designed to facilitate the
Fund franchised Studio same manner as the promotion and development of our brand,
Contributions2 Royalty System, Approved Services and Studios.
We require you to make a contribution to that

Fund amounting to 2% of the Gross Sales of
your Franchised Business (the “Fund
Contribution”), and your obligation to
contribute will commence once you have
started operating your Franchised Business.
Local $1,500 per month As arranged. You must expend a minimum of $1,500 per
Advertising month on local advertising and promotion of
Requirement your Franchised Business within your
Designed Territory.
FTP Tuition Fee Then-current fee we Prior to training. The FTP Tuition Fee is payable to us in the
designate event the program is completed at a corporate
location.
Currently, $1,000 per
trainee that signs up If the Program is provided by an authorized
to attend the FTP Master Trainer that is hired or otherwise
supplied by a System franchisee, the then-
current fee paid for each FTP trainee that
attends that session will be allocated and
remitted as follows: (i) $1,000 payable to us;
and (ii) $499 to that System franchisee.
We reserve the right to modify (a) the FTP

Tuition Fee, and (b) the allocation/remittance
made in connection with such Tuition Fees(s),
upon 30 days’ prior written notice (via the
Manuals or otherwise).
Additional Then-current training Prior to training. This fee is paid in connection with additional
Training fee for the kind of training/instruction that we may provide on an
training at issue ongoing basis in connection with the overall
operation and development of your Studio.
Currently, $500/ day
per trainer. We reserve the right to charge this fee in
connection with (a) any Master Training we
provide to an Authorized Flexologist of your
Studio, (b) re-training or replacement training
with regards to the portions of the initial
training that are designed for the franchisee
owner and/or Designated Manager, (c) any
training we require you to complete to cure a

default under your Franchise Agreement with
us (“Remedial Training”), (d) training you
request we provide (other than the kind of day-
to-day assistance described below), or (e)
training we provide on-site at your Franchised
Business.
We will not charge any training fee in

connection with minor, day-to-day assistance
that we provide remotely over the phone or via
email, subject to our availability.
In addition to our then-current training fee, you

will always be responsible for the costs and
expenses that are incurred in connection with
you and your personnel attending training.
Technology Fee Our then-current Payable monthly in We collect a Technology Fee to help facilitate
technology fee the same manner as certain technology we provide as part of the
the Royalty System components at any given time, as well
Currently, $275 per as help defray or cover the costs associated
month with such technology, which may include but
is not limited to, the costs incurred in
connection with establishing and maintaining
an intranet, extranet, online portal, website,
online advertising tools, mobile application
and/or any other technology for use in
connection with the Franchised Business.
This amount is subject to increase upon written

notice from us, whether due to an increase in
the applicable supplier pricing and/or other
reason.
Music Licensing Amounts charged by As invoiced or We may require that this amount be paid to our
the providers and/or otherwise agreed then-current Approved Supplier, which may be
appropriate clearing us or our affiliate, that determines to handle and
house(s) for such manage these licenses for System franchisees.
music licensing
As of the Issue Date, we are not collecting this
amount directly – but we may at some point in
2021 to help administer and manage the
licensing across the System.
Renewal Fee $10,000 At time of renewal. You must renovate and reimage the Studio at
your expense at the time of Renewal to
conform to our then-current standards and
image.

Transfer Fee FA: $10,000 Before the transfer. Payable as one of the conditions you must
comply with if we determine to approve your
(Franchise proposed transfer or assignment involving your
Agreement) Franchise Agreement or the franchised Studio
or, in some cases, an interest in you (if you are
an entity).
We only charge an administration fee

amounting to (i) $500 if you are an individual
franchisee and wish to assign you franchise
rights to an entity that you wholly own, or (ii)
$1,500 if you wish to make an assignment to
one (1) or more family members you propose.
There are a number of additional conditions

and terms you must comply with and that we
may factor into our decision of whether or not
to approve any transfer or assignment you
propose.
Transfer Fee $10,000 per On submitting Payable when you want to sell/transfer the
undeveloped application for rights under your Development Agreement.
(Development franchise consent to assignment
Agreement) Again, payment of this amount is only one (1)
of the conditions you will need to comply with
and that we may consider when determining
whether or not to approve any requested
assignment of transfer in connection with your
Development Agreement and/or the franchise
development rights awarded under that
agreement.
Insurance Amount of unpaid Must have the Payable only if you fail to maintain required
Policies3 premium. policies within 60 insurance coverage and we elect to obtain
calendar days after coverage for you.
signing the Franchise
Agreement, but no
later than the time that
you acquire an
interest in the real
property from which
you will operate the
Studio.
Audit Fees4 The costs we incur in Within 15 calendar Payable only if (a) audit or review shows an
connection with any days after receipt of understatement of Gross Revenue for the
audit at issue that audit report. audited period of 2% or more, or (b) the
reveals an audit or review is being conducted in
underreporting or response to your failure to timely submit any
that was conducted

in response to reports required by your Franchise

reporting default Agreement.
Currently, we
estimate the auditor-
related fees to be
between $500 to
$2,500
Mystery Shopper Currently, we do not Within 30 days of Payable only if we establish a mystery shopper
and Other require franchisees to demand. program or other quality control
Quality Control contribute to these mechanism/program, in which case we reserve
Programs programs, but we the right to require a franchisee to contribute up
reserve the right to to $500/year to help defray the costs of such
do so in the future. programs that are designed to preserve the
goodwill and brand image.
Interest on Late The greater of the Upon demand. Applies to all amounts not paid when due, until
Payments highest applicable paid in full.
legal rate for open
account business
credit, or 1.5% per
month.
Administrative Then-current fee Upon demand We reserve the right to require you to pay an
Fee charged by us administrative fee of $50 for each late payment
or late report in connection with payment of all
Currently, $50 for amounts due under your Franchise Agreement.
each late payment or
late report
Penalty Fee Then-current fee Upon demand. Payable only in the event you fail to comply
charged by us with your material obligations under your
Franchise Agreement by (a) permitting any
Currently, $100 for instructor at your Studio to provide Approved
each day of non- Services before they become an Authorized
compliance. Flexologist, or (b) offering or selling any
unauthorized products or services at your
Studio, including provision of the Flexologist
Training Program without an approved Master
Trainer (described more fully in Item 11
below). The Penalty Fee will be incurred
during each day of non-compliance.
Cost of All costs including Upon settlement or You will reimburse us for all costs in enforcing
Enforcement or attorneys’ fees conclusion of claim or our obligations concerning the Franchise
Defense action. Agreement if we prevail.
Indemnification All costs including Upon settlement or You will defend suits at your own cost and hold
attorneys’ fees conclusion of claim or us harmless against suits involving damages
action. resulting from your operation of the Studio
(subject to applicable state law).
Alternative $500 per day for At time of request. Additionally, you must reimbursement us for
Supplier personnel, plus any travel, accommodations, and meal
Approval5 expenses. expenses.
Regional As the Cooperative As the Cooperative We may establish regional cooperatives

Cooperative determines determines comprised of Studios that are within a given
geographical area (each, a “Cooperative”). If a
Cooperative is established where your Studio is
located, you will be required to participate in
that Cooperative and contribute to that
Cooperative in the amounts the Cooperative
determines. Company-owned or affiliate-
owned Studios will have the same voting rights
in such Cooperatives as franchisee-owned
Studios
Liquidated $10,000 As incurred. If you in any way compromise the secure
Damages access to the online version of the Manual,
including, but not limited to, allowing
unauthorized users access to the Manual and its
confidential contents, you will be required to
pay us liquidated damages in the amount of
$10,000, to compensate us for the breach and
related damage to the System.
Relocation Fee $5,000 Upon submission of a You will not be permitted to relocate your
proposal to relocate Studio without our prior written approval,
which may be withheld in our discretion.
We reserve the right to assess a relocation fee

of $5,000 at the time you submit the proposed
location for your relocated Studio. Generally,
we do not approve requests to relocate your
Studio after a site selection has been made and
you have opened for business unless (a) it is
due to extreme or unusual events beyond your
control, and (b) you are not in default of your
Franchise Agreement.
If we approve your relocation request, we

retain the right to approve your new site
location in the same manner and under the
same terms that are applied to your first site
selection
Notes to Item 6 Chart:
All fees are uniformly imposed by and are payable to us, unless otherwise noted. No other fees or
payments are to be paid to us, nor do we impose or collect any other fees or payments for any third party. Any
fees paid to us are non-refundable unless otherwise noted. Fees payable to third parties may be refundable based

on your individual arrangements.
Gross Sales. Except as provided below, the term “Gross Sales” means the total revenues you derive,
1
directly or indirectly from all business conducted upon, from or in connection with the Studio, less sales taxes or
similar taxes imposed by governmental authorities. (See Section 5.3 of the Franchise Agreement for a more
complete definition.) Please note that we exclude revenue generated from the provision of the Flexologist
Training Program at your Studio from the definition of Gross Sales because you are required to pay us a flat fee
of $1,000 for each individual that received the required training (as described more fully in the Chart above). You
must participate in our then-current electronic funds transfer and reporting program(s). All fees owed and any
other amounts designated by us must be received or credited to our account by pre-authorized bank debit by 5:00
p.m. on or before the applicable due date. Your franchised business may be located in a jurisdiction whose
taxing authority will subject us to tax assessments on payments you submit to us for the Royalty Fee and Fund
contributions. Under such circumstances, you will be required to adjust, or “gross up” your payment to us to
account for these taxes.
2
Fund. We have established the Fund to promote, market and otherwise develop the brand, Marks,
System, Studios and/or approved services (the “Fund”). When we establish a Fund, we may require you to
make a Fund Contribution as described more fully above.
3
Insurance Policies. The minimum limits for coverage under many policies will vary depending on
various factors, including where you are located and the size of your Studio. See Item 8 of this Disclosure
Document for our minimum insurance requirements.
4
Audit Fees. In the event that an audit discloses an understatement of Gross Sales or other discrepancy
equal to or greater than two percent (2%) of Gross sales, in addition to the cost of the audit, you will be required
to pay the marketing due on the amount of such understatement, plus late fees and interest.
5
Alternative Supplier Approval. You may request the approval of an item, product, service or supplier.
We may require you to pre-pay any reasonable charges connected with our review and evaluation of any proposal.
ITEM 7
ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
A. Franchise Agreement
TYPE OF EXPENDITURE1 LOW HIGH METHOD OF WHEN DUE TO WHOM

PAYMENT PAYMENT IS TO
BE MADE
Initial Franchise Fee2 $60,000 $60,000 Lump sum, in At signing of Us
cash, certified Franchise
check or bank wire Agreement
Costs and Expenses associated $500 $3,000 Lump Sum Prior to Transportation
with Attending Pre-Opening Training Carriers, Hotel
Training3 Facilities, Etc.
Real Estate/Lease4 $14,500 $40,500 As arranged As incurred Landlord, Approved

Suppliers

TYPE OF EXPENDITURE1 LOW HIGH METHOD OF WHEN DUE TO WHOM
PAYMENT PAYMENT IS TO
BE MADE
Leasehold Improvements5 $18,400 $78,000 As arranged As incurred Approved Suppliers,
Architects,
Contractors, Local,
State or Federal
Government & Third
Party Vendors
Signage 6 $8,000 $13,000 As arranged As incurred Approved Suppliers
Insurance7 $900 $2,500 As arranged Before Opening Insurance Carrier
Payments in Connection with $3,900 $14,000 Lump Sum Before Opening Third-Party Provider
Fitness Equipment and Certain You Determine
Other FFE – 3 Months8
Presale & Soft Opening Inventory $12,000 $12,000 Lump Sum Before Opening Us
Package9
Computer System and Related $2,500 $3,500 As arranged As incurred Approved Suppliers
Equipment10
Initial Marketing Spend, $15,000 $15,000 As arranged As arranged Approved Suppliers
including certain costs associated
with Opening Support Program11
Authorized Instructor Training $11,000 $15,000 As arranged As incurred Us
Fees12
Technology Fee – 1 Month Prior $1,100 $1,100 As arranged As arranged Us
to Opening plus First 3 Months
Additional Funds – $10,000 $40,000 As arranged As incurred Employees, Vendors
3 months13 and Utilities
TOTAL ESTIMATED $157,800 $297,600
INITIAL INVESTMENT 14
Notes to Table A in Item 7:

1
General. The initial investment table shows certain expenditures required to establish and operate a
Studio. Note that these amounts may vary widely, and the amounts you have to spend or invest may be higher or
lower than the estimated amounts, depending on location, size of the Studio, marketing conditions and other
factors. The estimate above assumes that you will commence operations on or before your “Rent Commencement
Date” under any lease you enter into for your Studio. We strongly recommend that you verify actual costs in your
area, and for your intended location, and prepare a business plan and have it reviewed by your own independent
adviser, like an accountant, before making any commitments to us or anyone else. Due to legal restrictions, we
will not prepare, review or comment on any business plan for a prospective franchisee. All amounts payable to us
are nonrefundable, unless otherwise noted. Amounts payable to suppliers/vendors are refunded according to
arrangements you make with the vendor, if any. Leasing and financing is available for many of the above
expenses. We do not offer direct or indirect financing, but we may assist you in obtaining working capital through
other sources. See Items 5 and 6, and other parts of this Disclosure Document, for more information regarding
Initial Franchise Fees and other costs.

2
Initial Franchise Fee. The Initial Franchise Fee is non-refundable. The Initial Franchise Fee for a single
Studio is $60,000. We do not provide financing for the Initial Franchise Fee.
3
Travel and Living Expenses While Attending Initial Training. This estimate is designed to cover the
costs and expenses you might incur in connection with you (or if you are an entity, one (1) of your operating
principals you designate to be the Designated Operator for the Studio) attending and completing the required
initial training described more fully in Item 11 of this Disclosed Document. We will not charge you or your
Designated Operator for this portion of our initial training that must completed on behalf of the franchisee/owner
under your Franchise Agreement. You will be responsible for the costs and expenses associated with attending
this training (e.g., transportation, meals, lodging and other expenses).
4
Real Estate/Lease. If you do not own adequate Studio space, you must lease suitable premises. These
figures assume that the leased premises will be approximately 1,200 square feet. Landlords may also vary the
base rental rate and charge rent based on a percentage of gross sales. In addition to base rent, the lease may require
you to pay common area maintenance charges (“CAM Charges”), your pro rata share of the real estate taxes and
insurance, and your pro rata share of HVAC and trash removal, all of which are all accounted for in this estimate.
The actual amount you pay under the lease will vary depending on the size of the Studio, the types of charges that
are allocated to tenants under the lease, your ability to negotiate with landlords, and the prevailing rental rates in
the geographic area. You will also likely be required to pay a security deposit. This estimate assumes your security
deposit will amount to approximately one (1) month of rent.
Since rental, improvement and other real-estate-related costs can vary significantly by area, it’s your
responsibility to (1) independently research all applicable laws and regulations, and real estate market conditions
and costs where you plan to locate and operate your facility, and (2) obtain appropriate advice from your own
accountant, attorney and real estate professional, before signing any binding documents or making any
investments or other commitments, whether to us or anyone else. As of the Issue Date, we have a number of third-
party law firms that have experience with our System criteria for potential Studio sites, and that have worked with
the franchisee networks of us and certain of our affiliate franchisors to review leases for the potential Approved
Location of your Studio and, if appropriate and authorized by you, to negotiate the terms of and close on that lease
acquisition. Each of these four (4) law firms is an “Approved Supplier” under Item 8 and this estimate includes
the costs to engage such an Approved Supplier to review and negotiate the lease for your Premises. If you wish to
use other counsel to perform this legal work, we will consider such proposal so long as you or the counsel at issue
can demonstrate experience with commercial real estate transactions in the state and/or area where your Studio is
to be located. If you determine to and we approve your use of counsel other than an Approved Supplier, you may
expend more or less than is set forth in the Chart above.
5
Leasehold Improvements. The cost of leasehold improvements will vary depending on: (i) the size and
configuration of the premises; (ii) pre-construction costs (e.g., demolition of existing walls and removal of existing
improvements and fixtures); and (iii) cost or materials and labor which may vary based on geography and location.
You must adapt our prototypical plans and specifications for the construction and finish-out of the Studio,
including approved flooring, mirrors and paint. These amounts may vary substantially based on local conditions,
including the availability and prices of labor and materials. These amounts may also vary depending on whether
certain of these costs will be incurred by the landlord and allocated over the term of the lease. For clarity, the
estimates presented herein are net of tenant improvement amounts incurred by the landlord. The low-end of the
range reflects modest improvements to a smaller location, and the high end reflects significant physical
improvements to a larger Studio. The range of costs also covers the expense to acquire the required local business
permits. We make no representations or assurances as to what (if any) licenses, permits, authorizations or
otherwise may be required in connection with your Studio. Our estimated costs include building permits, fire
inspection, sales tax permit, retail sales permits and, if applicable, any “MEP” permitting. You should investigate
applicable requirements in your area and the related costs, including receiving advice from regulatory agencies
and your own lawyer, before making any commitments, whether to us or anyone else.

6
Signage. You will need to purchase appropriate signage for your Studio that we approve. The cost of
your signage may be more or less than this estimate, and depends on the size, type and method of installation you
choose. Each landlord has different restrictions it places on interior and exterior signage that may affect your
costs.
7
Insurance. This estimate is for three (3) months of your minimum required insurance. The actual cost
may be more than shown here. You will need to check with your insurance carrier for actual premium quotes and
costs, and for the actual amount of deposit. Insurance costs can vary widely, based on the area in which your
business is located, your experience with the insurance carrier, the loss experience of the carrier, the amount of
deductibles and of coverage, and other factors beyond our control. You should obtain appropriate advice from
your own insurance professional before signing any binding documents or making any investments or other
commitments, whether to us or anyone else.
Payments in Connection with Fitness Equipment and Other FFE Package – Deposit and First 3 Months
8
of Operation. Our standard franchise offering assumes and expects that a new System franchisee will acquire the
required exercise equipment necessary to open and initially commence operations. As such, the range above is
designated to capture and account for the typical deposit and lease payments you will make to a supplier we
approve (we have pre-approved several as of the Issue Date) for to lease this equipment. The initial required amount
exercise equipment for a standard Studio is typically approximately 10 stretching benches and various related
equipment/supplies for use in connection with the provision of the Approved Services, and certain other equipment
used in connection with the Studio (e.g., foam rollers, ab mats, blocks, electric massage tools, pillows, straps,
exercise balls, etc.), although we may raise or lower this requirement depending on the size of your Studio.
If you determine not to follow our System-recommended practice of leasing this equipment associated
with our standard franchise offering described above, the estimated cost to purchase this equipment outright will
be substantially more (approximately $61,000 to $66,000) and will be paid to us or our designated supplier of
such equipment.
9
Pre-Sale and Soft Opening Initial Inventory Package. The typical for-sale items held in pre-sales and
soft opening inventory are branded apparel, including t-shirts, towels, exercise clothing and related accessories.
10
Computer System and Related Equipment. You must acquire a personal computer and a Point of Sale
system (“POS”) for use in the operation of the Studio. Your computer system must be equipped with a high speed
connection to the Internet and must include a local area network with a dedicated server. We will make available
to you a certain business management software program specific for the Studio to be loaded on to your system. You
will pay the third-party vendor directly for all fees associated with the use of the software. (Please see Item 6 of this
Disclosure Document for the fee amount and more details on the software.) You can expect initial cash outlays to
be lower if the items can be leased rather than purchased. These costs are paid to suppliers, when incurred, before
beginning business and are usually not refundable. Please see Item 11 of this Disclosure Document for more
information on the Computer System. You are required to have at least one (1) surveillance camera installed in
the Studio. You may be required to purchase the camera(s) and related accessories from an Approved Supplier
(see Item 8 of this Disclosure Document). The camera(s) must be web accessible. You will use the camera to
monitor teacher performance, quality assurance and safety. We have an absolute right to also review and monitor
the camera(s) for the same purposes as you, and to ensure compliance with the System. You are responsible for
ensuring customer consent and for any failure to obtain such consent. You must indemnify us for any breaches
of privacy from your use of any surveillance camera.
11
Initial Marketing Spend (including amounts to be expended as part of Opening Support Program). You
are required to expend this “Initial Marketing Spend” in coordination with the pre-opening sales plan we approve or
designate for your Studio as part of the opening support program that our approved supplier provides in connection
with your Studio, as we determine appropriate in our discretion (the “Opening Support Program”). Typically, we
expect your Opening Support Program to commence prior to the “soft opening” of your franchised Studio through
your actual opening of the Studio. These funds must be expended on your Opening Support Program and any other
pre-opening marketing and/or advertising activities we designate. We may require that you expend any portion of
these funds on services or product supplied by one or more of our Approved Suppliers. We will have the right to
modify its Opening Support Program as we determine appropriate in our sole discretion. You must provide us with
supporting documentation evidencing these expenditures upon our request. This estimate is in addition to your
required contributions to the Fund.
12
Initial Authorized Instructor Training Fees. This is the estimated range of fees that we expect you will
expend and pay to us on behalf of the initial instructors you hire or otherwise engage to provide the stretching
classes and other Approved Services in accordance with our System standards and specifications.
16
Additional Funds. This is an estimate of certain funds needed to cover your business (not personal)
expenses during the first three months of operation of the Studio. These expenses include: initial
employee/personnel wages and the costs/expenses that might be incurred in connection with sending your initial
staff of prospective Flexologists to attend proprietary instructor training prior to your opening; management
compensation (but not any draw or salary for you); ongoing purchases of equipment and supplies; marketing
expenses/fees and local advertising; ongoing utilities (other than initial deposits); and repairs and maintenance. Your
cost will depend upon your management skill, experience and business acumen; local economic conditions; the
prevailing wage rate; competition; and sales of the Studio during the period. This estimate is based on: (i) our
experience with the franchise system generally, as well as the experience of those franchisees that have commenced
constructing and/or otherwise opened their franchised Studios and reported certain figures to us in the format
requested so we can accurately account for in this Item; (ii) the experience of the existing Studios that have been
operated by the brand founders over the past three years; (iii) the experience of our sister brands in developing
other fitness concepts and information related to their respective studio investment costs with regards to
components of the concept investment that are similar; and (iv) current estimates we have received from our
Approved Suppliers and other third party vendors.
You will need capital to support on-going costs of your business, such as taxes, loan payments and other
expenses, to the extent that revenues do not cover business costs. New businesses (franchised or not) often have
larger expenses than revenues. This amount is only an estimate. We cannot guarantee that the amounts specified
will be adequate and you may need additional funds to open and operate. We do not furnish, or authorize anyone
else, to furnish estimates as to the capital or other reserve funds necessary to reach "break-even" or any other
financial position, or when or if you may be profitable, nor should you rely on any such estimates. In addition,
the estimates presented relate only to costs associated with the franchised business and do not cover any personal,
"living," unrelated business or other expenses you may have. The availability and terms of financing to you will
depend upon factors such as the availability of financing in general, your credit-worthiness, the collateral security
that you may have, and policies of lending institutions concerning the type of business you operate. This estimate
does not include any finance charge, interest, or debt service obligation.
14
Total Estimated Initial Investment. All of the above figures are estimates of certain initial start-up
expenses. As noted above, it is not all-inclusive, and we cannot guarantee you will not have additional expenses
in starting or operating the Studio. The total listed above does not include compensation for your time or labor or
any return on your investment. Your costs will vary depending on such factors as: how closely you follow the
System; your management and marketing skills, experience and general business ability; and local and general
economic conditions, including disposable income. You should review these figures carefully with a business
advisor (such as an accountant) before making any commitments. In preparing the figures in this chart, we relied
on our affiliates’ experience in owning and operating Studios.

B. Development Agreement (3-Pack)
TYPE OF AMOUNT METHOD WHEN DUE TO WHOM

EXPENDITURE 1 OF PAYMENT IS TO
PAYMENT BE MADE
Development Fee2 $135,000 Lump sum, in At signing of Us
cash, certified the
check or bank Development
wire Agreement.
Initial Investment to Open $97,800 to $237,600 See Chart A of this Item 7.

Initial Franchised
Business3
TOTAL ESTIMATED $232,800 to $372,600 This is the total estimated initial investment to enter
INITIAL INVESTMENT into a Development Agreement for the right to own a
total of three Franchised Businesses, as well as the
costs to open and commence operating your initial
Franchised Business for the first three months (as
described more fully in Chart A of this Item 7). See
Note 3.
Notes to Table B in Item 7:

1
General. All amounts payable to us are nonrefundable, unless otherwise noted. Amounts payable to
suppliers/vendors are refunded according to arrangements you make with the vendor, if any. These figures are
estimates of the range of your initial costs in the first three months of operating the initial Franchised Business
you are granted under your Development Agreement only.
2
Development Fee. The Development Fee is non-refundable. The Development Fee is described in greater
detail in Item 5 of this Disclosure Document, and this Development Fee is for the right to open and operate a total
of three Franchised Businesses (provided you comply with your development obligations under the Development
Agreement). If you choose to open more than three Franchised Businesses, your Development Fee will be
calculated as follows: (i) $45,000 per Franchised Business if you are awared the right to develop between three
(3) and five (5) Franchised Businesses; (ii) $40,000 per Franchised Business if you are awarded the right to
develop between six (6) and nine (9) Franchised Businesses; and (iii) $35,000 per Franchised Business if you are
awarded the right to develop 10 or more Franchised Businesses.
3
Initial Investment for Initial Franchised Studio. This figure represents the total estimated initial
investment required to open and commence operating the first Franchised Business you agreed to develop under
your Development Agreement. You will be required to enter into our then-current form of franchise agreement
for the initial Franchised Business you open under your Development Agreement, most likely once you have
found a Premises for the business that we approve. The range includes all the items outlined in Chart 7.A. of this
Item, except for the $60,000 Initial Franchise Fee (because you are not required to pay an Initial Franchise Fee
for those Franchised Businesses you open under the Development Agreement). It does not include any of the costs
you will incur in developing, opening and initially operating any additional Franchised Business(es) that you are
required to develop after your initial Franchised Business under your Development Agreement.

ITEM 8
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
You must operate all aspects of your Franchised Business in strict conformance with the methods,
standards and specifications of our System. Our methods, standards, and specifications will be communicated to
you in writing through our confidential Manuals and other proprietary guidelines and writings that we prepare for
your use in connection with the Franchised Business and System. We may periodically change our System
standards and specifications from time to time, as we deem appropriate or necessary in our sole discretion, and
you will be solely responsible for costs associated with complying with any modifications to the System.
Approved Products and Services
You may only market, offer, sell and provide the Approved Services, as well as any related merchandise
and other products that Franchisor authorizes for sale in conjunction with the Approved Services (the “Approved
Products”) at your Franchised Business in a manner that meets our System standards and specifications. We will
provide you with a list of our then-current Approved Products and Services, along with their standards and
specifications, as part of the Manuals or otherwise in writing prior to the opening of your Franchised Business.
We may update or modify this list in writing at any time.
If you wish to offer any product or service in your Franchised Business other than our Approved Products
and Services, or use any item in connection with your Franchised Business that does not meet our System
standards and specifications, then you must obtain our prior written approval as described more fully in this Item.
Approved Suppliers
We have the right to require you to purchase any items or services necessary to operate your Franchised
Business from a supplier that we approve or designate (each, an “Approved Supplier”), which may include us or
our affiliate(s). We will provide you with a list of our Approved Suppliers in writing as part of the Manuals or
otherwise in writing, and we may update or modify this list as we deem appropriate.
Currently, we have Approved Suppliers for the following items that you must purchase in connection with
the establishment and/or operation of your Franchised Business: (i) Pre-Sale and Soft Opening Inventory Package;
(ii) other ongoing inventory items; (iii) the Flexologist Training Program that your instructors must complete to
become Authorized Flexologist (and related materials); (iv) certain other exercise equipment/supplies; (v) interior
graphics and exterior signage; (vi) insurance coverage (subject to applicable law where the Studio is located); (vii)
shipping and installation services; (viii) training materials, including the “Webinar Training” associated with the
Flexologist Training Program; and (ix) proprietary point-of-sale system (the “POS System”) and then-current
software we require you to use in connection with that POS System and your Studio. We also currently have a
number of law firms that we have designated as Approved Suppliers that we can connect you with to handle the
legal work associated with securing your Approved Location, and if you wish to use other counsel then you or
that counsel must demonstrate that it has experience in connection with commercial real estate transactions and
associated laws where your Studio in the state or other area where the proposed site is located as part of your
proposal to use an alternate supplier disclosed more fully below in this Item.
Currently, we are the only Approved Supplier for: (i) the Pre-Sale and Soft Opening Inventory Package;
(ii) the technology services we determine to provide as part of our then-current Technology Fee; and (iii) will be
the only party that can provide your instructors with the Flexologist Training Program (FTP) – other than a
franchised Studio that has already has a Master Trainer capable of providing the FTP to your prospective
instructors.
We also have third-party providers that we recommend our System francihsees utilize for the (a)
architectural design services, and (b) legal services, associated with the site you request that Franchisor approve
as your Authorized Location and the negotiations associated with the underlying lease for that location. As of the
Issue Date, we have one (1) or more providers that we will recommend, but you may ultimately determine to
engage a different professional in accordance with the approval process set forth below in this Item 8.
We may develop proprietary products for use in your Franchised Business, including private-label
products that bear our Marks, and require you to purchase these items from us or our affiliate(s).
If you wish to purchase a product or service that we require you to purchase from an Approved Supplier
from an alternate source, then you must obtain our prior written approval as outlined more fully in this Item. You
may only purchase products or services from an alternative supplier if you obtain such prior written approval,
regardless of that alternative supplier’s compliance with any relevant criteria or specifications we use to evaluate
alternative suppliers. We may provide our standards and specifications for our Approved Products and Services
directly to our Approved Suppliers, and may provide these standards and specifications to an alternative supplier
you propose if: (i) we approve the supplier in writing as outlined more fully in this Item; and (ii) the alternative
supplier agrees to sign our prescribed form of non-disclosure agreement with respect to any confidential
information we disclose.
To the extent that we establish standards and specifications for particular non-proprietary items or
services, we will publish our requirements in the Manual or make them available to System franchisees upon
written request. We may, at any time, in our discretion, change, delete, or add to any of our specifications or
quality standards. Such modifications, however, will generally be uniform for all franchisees. We will notify you
of any changes to our Manual specifications, or standards in writing, which we may transmit to you electronically.
Except as provided above in this Item: (i) neither we nor any of our affiliates are an Approved Supplier
for any items you are required to purchase in connection with your Franchised Business; and (ii) none of our
officers own an interest in any of our Approved Suppliers other than us.
We reserve the right to designate us or any of our affiliates as an Approved Supplier with respect to any
other item you must purchase in connection with your Franchised Business in the future.
Required Purchases and Right to Derive Revenue
The products or services we require you to purchase or lease from an Approved Supplier, or purchase or
lease in accordance with our standards and specifications, are referred to collectively as your “Required
Purchases.” We estimate that your required purchases, purchases from Approved Suppliers and purchases that must
meet our specifications in total will be about 70% to 95% of your total purchases to establish the Studio and about
35% to 65% of your purchases to continue the operation of the Studio. Please be advised that these percentages do
not include the lease payments that you make in connection with your premises.
We and our affiliates reserve the right to derive revenue from any of the purchases (items or services) that
our System franchisees are required to make in connection with the Franchised Business. In our past fiscal year
ending December 31, 2020, we derived $4,099,853 or 56% of our total revenue of $7,286,180 over the time period,
from System franchisees’ required purchases.
Non-Approved Product/Service and Alternate Supplier Approval
We may, but are not obligated to, grant your request to: (i) offer any products or services in connection
with your Franchised Business that are not Approved Products and Services; or (ii) purchase any item or service
we require you to purchase from an Approved Supplier from an alternative supplier.
If you wish to undertake either of these actions, you must request and obtain our approval in writing
before: (i) using or offering the non-approved product or service in connection with your Franchised Business; or
(ii) purchasing from a non-approved supplier. You must pay our then-current supplier or non-approved product
evaluation fee when submitting your request, as well as cover our costs incurred in evaluating your request. We
may ask you to submit samples or information so that we can make an informed decision whether the goods,
equipment, supplies or supplier meet our specifications and quality standards. In evaluating a supplier that you
propose to us, we consider not only the quality of the particular product at issue, but also the supplier’s production
and delivery capability, overall business reputation and financial condition. We may provide any alternate supplier
you propose with a copy of our then-current specifications for any product(s) you wish the supplier to supply,
provided the supplier enters into a confidentiality and non-disclosure agreement in the form we specify. We may
also inspect a proposed supplier’s facilities and test its products and/or services, and request that you reimburse
our actual costs associated with the testing/inspection.
We will notify you in writing within 30 days after we receive all necessary information and/or complete
our inspection or testing to advise you if we approve or disapprove the proposed item and/or supplier. The criteria
we use in approving or rejecting new suppliers is proprietary, but we may (although are not required to) make it
available to you upon request. Each supplier that we approve must comply with our usual and customary
requirements regarding insurance, indemnification and non-disclosure. If we approve any supplier, we will not
guarantee your performance of any supply contract with that supplier under any circumstances. We may re-inspect
and/or revoke our approval of a supplier or item at any time and for any reason to protect the best interests and
goodwill of our System and Marks. The revocation of a previously approved product or alternative supplier is
effective immediately when you receive written notice from us of revocation and, following receipt of our notice,
you may not place any new orders for the revoked product, or with the revoked supplier.
Purchasing Cooperatives and Right to Receive Compensation
We may, when appropriate, negotiate purchase arrangements, including price terms, with designated and
Approved Suppliers on behalf of the System. We may establish strategic alliances or preferred vendor programs
with suppliers that are willing to supply some products, equipment, or services to some or all of the Studios in our
System. If we do establish those types of alliances or programs, we may: (i) limit the number of approved suppliers
with whom you may deal; (ii) designate sources that you must use for some or all products, equipment and
services; and (iii) refuse to approve proposals from franchisees to add new suppliers if we believe that approval
would not be in the best interests of the System.
We and/or our affiliate(s) may receive payments or other compensation from Approved Suppliers or any
other suppliers on account of these suppliers’ dealings with us, you, or other Franchised Businesses in the System,
such as rebates, commissions or other forms of compensation. We may use any amounts that we receive from
suppliers for any purpose that we deem appropriate. We and/or our affiliates may negotiate supply contracts with
our suppliers under which we are able to purchase products, equipment, supplies, services and other items at a
price that will benefit us and our franchisees.
We reserve the right to create additional purchasing cooperatives in the future. We may negotiate volume
purchase agreements with some vendors or Approved Suppliers for the purchase of goods and equipment needed to
operate the Studio.
Franchisee Compliance
When determining whether to grant new or additional franchises, we consider many factors, including
your compliance with the requirements described in this Item 8. You do not receive any further material benefit
as a result of your compliance with these requirements.
Insurance
As a franchise owner, you are required to obtain and maintain, at your sole expense, the insurance coverages and
minimum coverage amounts we require in writing, whether via the Manuals or otherwise. The standards may vary
depending on the size of your Studio and/or other factors, such as what is customary for businesses of your type
in your area, but we typically require the following insurance in the following amounts as of the Issue Date:
1. Commercial General Liability insurance covering your day-to-day business operations and premises
liability exposures with limits not less than the following:
a. Each Occurrence: $1,000,000
b. General Aggregate: $5,000,000 (per location)
c. Products Completed Operations Aggregate: $5,000,000
d. Personal and Advertising Injury: $1,000,000
e. Participant Legal Liability: $1,000,000
f. Professional Liability: $1,000,000
g. Damage to Premises Rented to You: $1,000,000
h. Employee Benefits Liability (each employee): $1,000,000
i. Employee Benefits Liability (aggregate): $2,000,000
j. Medical Expense (any one person): $5,000
k. Sexual Abuse and Molestation: included (not excluded)
Such insurance shall include coverage for contractual liability (for liability assumed under an “insured
contract”), products-completed operations, personal and advertising injury, premises liability, third party
property damage and bodily injury liability (including death).
2. Automobile Liability insurance covering liability arising out of your use, operation or maintenance of any
auto (including owned, hired, and non-owned autos, trucks or other vehicles) in connection with your
ownership and operation of the franchise, with limits not less than the minimum compulsory requirements
in your state (note: it is highly recommended to maintain a least $1,000,000 each accident combined single
limit for bodily injury and property damage). This requirement only applies to the extent that owned,
leased or hired/rented vehicles are used in the operation of the franchise.
3. Workers Compensation insurance covering all of your employees with statutory coverage and limits as
required by state law. Such insurance shall include coverage for Employer’s Liability with limits not less
than $500,000 each accident, $500,000 disease – each employee, and $500,000 disease – policy limit.
4. Property insurance written on a special causes of loss coverage form with limits not less than the current
replacement cost of the Studio’s business personal property (including furniture, fixtures and equipment)
and leasehold improvements (tenant improvements). Such Property insurance shall include glass coverage
with limits not less than $25,000, signage coverage with limits not less than $10,000, and business
interruption/extra expense coverage with limits not less than twelve months of rent.
5. Employment Practices Liability insurance with limits of not less than $1,000,000 per claim in the
aggregate, with a retention not larger than $25,000, providing defense and coverage for claims brought
by any of your employees or other personnel alleging various employment-related torts. Said policy shall
also include Third Party Employment Practices Liability coverage.
Your policies must be written by an insurance company licensed in the state in which you operate the Studio and
the insurance company must have at least an “A” Rating Classification as indicated in A.M. Best’s Key Rating
Guide. us and our parent, subsidiary and affiliated companies shall be included as Additional Insureds on Studio’s
Commercial General Liability policy.

Computer System
You must purchase the computer system that we specify, including computer hardware, software, point of
sale system, inventory control systems, and high-speed network connections (collectively, the “Computer System”).
The component parts of the Computer System must be purchased from approved suppliers. If we require you to use
any proprietary software or to purchase any software from a designated vendor, you must sign any software license
agreements that we or the licensor of the software require and any related software maintenance agreements. The
Computer System is described in more detail in Item 11 of this Disclosure Document.
ITEM 9
FRANCHISEE’S OBLIGATIONS
This table lists your principal obligations under the franchise and other agreements. It will help
you find more detailed information about your obligations in these agreements and in other items of the
Disclosure Document.
Section in Disclosure
Section in Franchise
Obligation Development Document
Agreement
Agreement Item
a. Site Selection and Sections 1.2, 6.1, 6.2, 7.2 Section 8 Items 11 and 12
acquisition/lease and 7.3 of Franchise
Agreement
b. Pre-opening Sections 6.1, 6.2, 7.2, 7.3 Section 8 Items 5, 7 and 8
purchases/leases and 8.4 of Franchise
Agreement
c. Site development and Sections 6.1, 6.2, 7.1 and Section 3 Items 6, 7 and 11
other pre-opening 7.3 of Franchise
requirements Agreement
d. Initial and ongoing Sections 5.7 and 6.3 of Not Applicable Items 6, 7 and 11
training Franchise Agreement
e. Opening Sections 2.2 and 6.9 of Section 3, Exhibit B Item 11
Franchise Agreement
f. Fees Sections 3.2.F., 5, 9.1 and Section 9 Items 5 and 6
14.2 of
Franchise Agreement
g. Compliance with Sections 1.2, 2.2, 4.2, 6.4, Section 3 Item 11
standards and policies 6.6, 6.7, 7.1, 7.3, 7.4, 8.7
/ Operating Manual and 9.3 of Franchise
Agreement
h. Trademarks and Sections 1.1, 4, 12.1, 15.1 Section 13 Items 13 and 14
proprietary and 15.3 of Franchise
information Agreement
i. Restrictions on Sections 1.3, 2.1, 2.2, 7.1, Not Applicable Items 8 and 16
products/services 8.1 and 8.4 of Franchise
offered Agreement

Section in Disclosure
Section in Franchise
Obligation Development Document
Agreement
Agreement Item
j. Warranty and Section 8.3 of Franchise Not Applicable Not Applicable

customer service Agreement
requirements
k. Territorial Sections 1.3 and 8.8 of Section 1, 3, and Item 12
development and sales Franchise Agreement Exhibit B
quotas
l. Ongoing Sections 8.4 and 10.3 of Not Applicable Items 8 and 11
product/service Franchise Agreement
purchases
m. Maintenance, Sections 3.2.D. and 7.4 of Not Applicable Items 6 and 17
appearance and Franchise Agreement
remodeling
requirements
n. Insurance Section 10.4 of Franchise Not Applicable Items 6, 7 and 8
Agreement
o. Advertising and Fund Sections 5.6 and 9 of Not Applicable Items 6 and 11
Franchise Agreement
p. Indemnification Section 11.2 of Not Applicable Item 6
Franchise Agreement
q. Owner’s participation/ Sections 8.3 and 8.6 of Section 7 Item 15
management/staffing Franchise Agreement
r. Records and reports Sections 10.1 and 10.3 of Not Applicable Item 11
Franchise Agreement
s. Inspections and audits Sections 8.2 and 10.2 of Not Applicable Items 11
Franchise Agreement
t. Transfer Section 14 of Franchise Section 16 Items 6 and 17
Agreement
u. Renewal Section 3.2 of Franchise Not Applicable Item 17
Agreement
v. Post-termination Sections 13.1 and 15.3 of Sections 14, 15 Item 17
obligations Franchise Agreement
w. Non-competition Sections 12.2 and 13 of Section 11 Item 17
covenants Franchise Agreement
x. Dispute resolution Section 16 of Sections 21, 22 Item 17
Franchise Agreement
y. Guaranty Exhibit 4 to the Franchise Not Applicable Item 1
Agreement

ITEM 10
FINANCING
Liability
Item Source of Down Amount Interest Monthly Prepay Security Upon Loss of Legal
Financed Financing Payment Financed Term Rate Payment Penalty Required Default Right on Default
Pre-Sale and
Soft Opening
Inventory
Package &
Fitness Lender will
Equipment repossess
and Other Varies equipment and
FFE Package, based on schedule payment
which amount Lien on plan for balance
includes financed, financed due. If lender is
furniture, down equipment able to resell
millwork, payment, only; no equipment, resale
equipment, term, and additional price will be
shipping, and 0% to $73,000 to 2 to 5 5.9% to interest collateral Unpaid applied to balance
installation. Amerifund 20% $78,000 years 18% rate None required balance due.
Pre-Sale and
Soft Opening No right of
Inventory Lender offset, defense or
Package & May may counterclaim of
Fitness require: repossess any kind against
Equipment Eligible to personal equipme Macrolease; no
and Other Varies prepay guaranty; nt and preclusion from
FFE Package, based on after first lien on seek taking action
which amount year; equipment relief against third
includes financed, sliding financed; based on parties, as long as
furniture, down scale lien on guarante that action does
millwork, payment, thereafter. business; ed assets not impact
equipment, term, and Maximum personal and payment
shipping, and 0% to $73,000 3 to 4 6.5% to interest penalty of assets as personal obligation to
installation. MacroLease 20% to $78,000 years 8.5% rate 3% collateral assets Macrolease.
Pre-Sale and
Soft Opening
Inventory
Package &
Fitness Sliding
Equipment scale;
and Other total of all
FFE Package, payments
which Varies in first
includes based on year;
furniture, amount principal Lien on
millwork, First and financed, balance financed
equipment, last term, and plus 0% to equipment; Lender can
shipping, and months’ $73,000 1 to 5 interest 5% personal Unpaid repossess and
installation. Navitas payments to $78,000 years 8.9% rate thereafter guaranty balance resell equipment

ITEM 11
FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
A. Pre-Opening Assistance
Franchise Agreement
Before you open the Studio:
1. We will provide you (or, if you are an entity, your Designated Operator), as well as your Designated
Manager (if appointed) with the respective initial training that such individuals are required to attend and complete
prior to opening your Franchised Business. We will typically provide the Initial Training Program to you and your
designated trainees within the 30 days preceding your Studio opening, but that timing will be subject to the
availability and schedules of our training personnel. We will provide this Initial Training Program at our corporate
headquarters or other training facility we designate, and this initial training (as well as other training provided by us
in connection with your Studio) is described more fully below in this Item under the heading “Training”. (Franchise
Agreement, Section 6.3). We will also provide the Flexologist Training Program to the initial instructors that wish
to become Authorized Flexologists and provide the Approved Services at your Studio, provided you or the instructor
pay our then-current FTP Tuition Fee. Other than the training obligations set forth in Item 11, you will be responsible
for hiring and training all other Studio employees.
2. If the Authorized Location (defined in Item 12 of this Disclosure Document) for your Studio has
not been identified at the time the Franchise Agreement is signed, we will work with you to designate a geographical
area within which you must secure an Authorized Location for your Studio (“Designated Market Area”). (Franchise
Agreement, Section 1.3). We will also comply with our obligations with respect to site selection assistance and
site approval as set forth more fully below in this Item under the heading “Site Selection Assistance and Time to
Open”.
3. Prior to you attending your required initial training, we will loan you one copy of the Manual,
which contains mandatory and suggested specifications, standards and procedures. The Manual is confidential
and remains our property. We may modify the Manual. (Franchise Agreement, Section 6.4). The Table of
Contents of the Manual is attached to this Disclosure Document as Exhibit E. The Manual currently consists of
82 pages.
4. Within 30 calendar days of execution of your Franchise Agreement, we will provide you (through
the Manual or otherwise) with specifications for the layout and design of the Studio (Franchise Agreement,
Sections 6.2, 7.1 and 7.3).
5. Within 30 calendar days of execution of your Franchise Agreement, we will provide you (through
the Manual or otherwise) with a list of Required Items and a list of Approved Suppliers (Franchise Agreement,
Section 6.6). As of the Issue Date, we will also serve as the source for all or certain components of the Fitness
Equipment and Other FFE Package (subject to the other disclosures in this document about how our standard
franchise offering assumes and expects you will lease this Package from an third-party provider).
6. We will license you the use of the then-current Marks we designate for use in connection with
our franchised Studios (Franchise Agreement, Section 4.2).
7. We will consult and advise you on the advertising, marketing and promotion associated with the
grand opening of your Studio, as described more fully below in this Item 11. (Franchise Agreement, Sections 6.9
and 9.2).

8. If you enter a Development Agreement, we will designate your Development Area.
(Development Agreement, Section 1 and Exhibit A).
B. Site Selection Assistance and Time to Open
Site Selection Assistance
You must assume all costs, liabilities, expenses and responsibility in connection with: (i) locating, obtaining
and developing a premises for your Franchised Business; and (ii) constructing, equipping, remodeling and/or
building out the premises for use as a Franchised Business, all in accordance with our System standards and
specifications. If the Authorized Location for your Studio has not been identified at the time the Franchise Agreement
is signed, we will assign you a Designated Market Area as previously disclosed in this Item. (Franchise Agreement,
Section 1.3).
We may provide you with: (i) our current written site selection guidelines, to the extent such guidelines are
in place, and any other site selection counseling and assistance we determine is appropriate; and (ii) the contact
information of any local real estate broker that we have an existing relationship with and that is familiar with our
confidential site selection/evaluation criteria, if we know any such brokers in or around the Designated Market Area
you are assigned. (Franchise Agreement, Sections 1.2, 1.3 and 6.1). We do not generally own the premises that
System franchisees use for their Studio.
Our guidelines for site selection may require that you conduct, at your expense, an evaluation of the
demographics of the market area for the location. Ideally, the Authorized Location of your Studio will be a major,
national-tenant, anchored commercial retail center that meets our then-current requirements for population
density, demographics, available parking, traffic flow and entrance/exit from the site. The typical Studio will be
between 1,200 and 1,500 square feet. (Franchise Agreement, Section 6.1).
If you locate a site, we will approve or disapprove of the site within 30 days after we receive any and all
reasonably-requested information regarding your proposed site from you. (Franchise Agreement, Section 1.2).
We use a software program to evaluate the demographics of a market area for site selection approval. If we cannot
agree on a site, we may extend the time for you to obtain a site, or we may cancel the Franchise Agreement. We
must also have the opportunity to review any lease or purchase agreement for a proposed location before you enter
into such an agreement. We may condition our approval of any site you propose on a number of conditions,
including: (i) the inclusion of the terms outlined in Section 7.2 of the Franchise Agreement and Exhibit 5 to the
Franchise Agreement in the lease for the location; and (ii) receiving a written representation from the landlord of the
premises that you will have the right to operate the Studio, including offering and selling the Approved Products and
Services, throughout the term of your Franchise Agreement. (Franchise Agreement, Sections 2.2(C) and 7.2, and
Exhibit 5).
You must secure an Authorized Location that we approve within six (6) months of executing your Franchise
Agreement for that Franchised Business. If you do not secure a Premises that we approve within this time period,
then we reserve the right to terminate your Franchise Agreement. (Franchise Agreement, Section 1.2).
Time to Open: Franchise Agreement
We will authorize the opening of your Studio when (i) all of your pre-opening obligations have been
fulfilled, (ii) all required pre-opening training has been completed, including the Flexologist Training Program
that must be completed by at least one (1) Authorized Flexologist to be able to provide the Approved Services
from your Studio, (iii) all amounts due us have been paid, (iv) copies of all insurance policies (and payment of
premiums) and all other required documents have been received by us, and (v) all permits have been approved.
(Franchise Agreement, Sections 5.4, 5.7, 6.3 and 10.4).
The typical length of time between the signing of the Franchise Agreement and the time you open your
Studio is approximately three (3) to six (6) months. Your total timeframe may be shorter or longer depending on the
time necessary to obtain an acceptable premises, to obtain financing, to obtain the permits and licenses for the
construction and operation of the Franchised Business, to complete construction or remodeling as it may be affected
by weather conditions, shortages, delivery schedules and other similar factors, to complete the interior and exterior
of the Franchised Business, including decorating, purchasing and installing fixtures, equipment and signs, and to
complete preparation for operating the Franchised Business, including purchasing any inventory or supplies needed
prior to opening.
You are required to open your Franchised Business within six (6) months of executing your Franchise
Agreement, but we may agree in writing to provide you with an additional three (3) months to open your Studio if
you (a) have already secured an approved premises for your Studio, and (b) are otherwise making diligent and
continuous efforts to buildout and otherwise prepare your Franchised Business for opening throughout the six (6)
month period following the execution of your Franchise Agreement. If you do not open your Studio within the time
period set forth in the Franchise Agreement, we will have the option to terminate your Franchise Agreement.
(Franchise Agreement, Sections 1.2 and 2.2).
Time to Open: Development Agreement (if applicable)
If you have entered into a Development Agreement to open and operate three (3) or more Franchised
Businesses, your Development Agreement will include a Development Schedule containing a deadline by which
you must have each of your Franchised Businesses open and operating. (Development Agreement, Exhibit A).
C. Our Obligations During the Operation of the Franchised Business
Except as listed below, we are not required to provide you with any assistance.
During the operation of a given Franchised Business:
1. We will specify or approve certain equipment and suppliers to be used in the franchised business
(Franchise Agreement, Sections 6.6 and 7.1).
2. We will provide additional training to you and any of your personnel at your request, subject to
the availability of suitable trainers, including (a) ongoing Flexologist Training for new and replacement instructors
of your Studio so they can provide that Approved Services as an Authorized Flexologist, and/or (b) any Master
Training you request and we determine appropriate to provide to one (1) of your Authorized Flexologists that has
demonstrated a high proficiency in providing the Approved Services. You are responsible for any and all fees and
costs associated with such additional training (Franchise Agreement, Section 6.3).
3. If you do not obtain and maintain appropriate insurance coverage, we may procure the coverage
on your behalf. We will pass the cost onto you. (Franchise Agreement, Section 10.4.D.)
4. We may institute various programs for auditing customer satisfaction and/or other quality control
measures (Franchise Agreement, Section 8.2).
5. We will maintain and administer the Fund (the “Fund”) as described more fully under the
“Advertising and Marketing” heading below (Franchise Agreement, Section 9.1).
D. Advertising and Marketing
Advertising Generally
You are responsible for local marketing activities to attract members to your Studio. We require you to
submit samples of all advertising and promotional materials (and any use of the Marks and/or other forms of
commercial identification) for any media, including the Internet, World Wide Web or otherwise. You must first
obtain our advanced written approval before employing any form of co-branding, or advertising with other brands,
products or services. (Franchise Agreement, Section 9.2).
You must strictly follow the social media guidelines, code of conduct, and etiquette as set forth in the
Manual regarding social media activities. Any use of Social Media by you pertaining to the Studio must be in
good taste and not linked to controversial, unethical, immoral, illegal or inappropriate content. You will promptly
modify or remove any online communication pertaining to the Studio that does not comply with the Franchise
Agreement or the Manual. (Franchise Agreement, Section 9.3).
Local Advertising Requirement; Co-Ops
As part of your material obligations under your Franchise Agreement, you must expend at least $1,500
per month on marketing and advertising materials that we approve in connection with the promotion of your
Studio within your Designated Territory (your “Local Advertising Requirement”). Upon our request, you must
provide us with an accounting of your monthly expenditures associated with your Local Advertising Requirement,
along with invoices and other relevant documentation to support those expenditures. Please be advised that the
Local Advertising Requirement is only the minimum amount you must expend each month, and we encourage
you to expend additional amounts on the local promotion of your Studio. We are not required to spend any amount
on advertising within your Designated Territory.
As of the Issue Date, we have not yet established a local or regional advertising cooperative and we have
not created any advertising council composed of franchisees. We may, in the future, decide to form one or more
associations and/or sub-associations of Stretch Lab Studios to conduct various marketing-related activities on a
cooperative basis (a “Co-Op”). If one or more Co-Ops (local, regional and/or national) are formed covering your
area, then you must join and actively participate. All Studios in the designated area may be required to contribute
such amounts as are determined from time to time by such Co-Op. Each participating Studio will have one vote
in making decisions of the Co-op, but in order to vote the Studio must be in good standing, and all decisions will
be subject to our approval. We have the right to establish reasonable procedures for calling and conducting
meetings, notices to the participants, and other procedural matters, and will make any governing documents, if
any exist, available to you upon request. (Franchise Agreement, Section 9.4).
Initial Marketing Spend; Opening Support Program
In addition to the Local Advertising Requirement, you will be required to expend a minimum of $15,000
in connection with pre-opening sales activities and other initial launch promotional activities designed to increase
visibility of your Franchised Business within your Designated Territory (the “Initial Marketing Spend”). You may
be required to expend all or some portion of the Initial Marketing Spend on products/services received from an
Approved Supplier we designated or approve, and all materials used in connection with your grand opening
campaign must be approved by us if not previously designated for use. We expect that you will typically be
required to expend these amounts in the months leading up to your “soft opening” through the actual opening of
your Studio. (Franchise Agreement, Section 9.2).
Once your real estate lease is signed, you must being undertaking the “pre-sale” phase of opening your
Studio wherein you will develop a plan in coordination with us (and that we approve) for use in connection with
your Opening Support Program that is designed to generate Studio clientele or other sales prior to the opening of
your Studio, as well as generating prospective leads for sales at your Studio. Currently, your Opening Support
Program is provided by our third-party Approved Supplier and is currently overseen by our internal marketing
and sales departments. Participation in the Opening Support Program is mandatory, and we may require you to
expend certain amounts on services or content that is supplied by one (1) or more of our Approved Supplier(s).
Brand Development Fund

We have established a brand development Fund as previously disclosed in Item 6 of this Disclosure
Document to promote and further developer the brand, Marks, System, Studios and/or Approved Services how
we determine appropriate in our discretion. We require you to make a Fund Contribution each payment period
amounting to up to two percent (2%) of the Gross Sales of your Franchised Business over the prior reporting
period of operations. (Franchise Agreement, Sections 5.5 and 9.1).
The Fund is administered by us, as we deem appropriate in our discretion. With that said, we may also
establish a Fund committee (the “FAC”) to help advise on matters related to the Fund. In the event we establish the
FAC, the Fund will still be administered by us with the FAC serving in an advisory capacity only. The Fund will be
maintained and operated by us to meet the costs of conducting regional and national advertising and promotional
efforts, other brand development activities, as well as related technology used to implement the foregoing (i.e., digital
marketing platform, System web portal) that we determine beneficial to the System. The FAC, if established, will
serve in an advisory capacity only. We will direct all public relations, advertising and promotions with sole
discretion over the message, creative concepts, materials and media used in the programs and the placement and
allocation thereof. We have the power to form, change or dissolve the Fund and/or FAC. We will pay for these
activities from the Fund. The Fund contributions may be used for traditional and digital advertising activities, such
as website development, social media, public relations, advertising campaigns (television, radio, print or other
media), or other promotions which will raise awareness of our brand. (Franchise Agreement, Sections 6.8 and
9.1).
We are not obligated to ensure that Fund activities or dollars are spent equally, on a pro rata basis, either
on your Studio, or all Studios in an area. A brief statement regarding the availability of System franchises may
be included in advertising and other items produced using the Fund, but we will not otherwise use the Fund to pay
for franchise sales or solicitations.
Reasonable disbursements from the Fund will be made solely for the payment of expenses incurred in
connection with the general promotion of the Marks and the System, including the cost of formulating, developing
and implementing advertising and promotional campaigns; and the reasonable costs of administering the Fund,
including accounting expenses and the actual costs of salaries and fringe benefits paid to our employees engaged
in administration of the Fund. The Fund is not a trust or escrow account, and we have no fiduciary obligations
regarding the Fund. We are not required to audit our Fund expenditures, but we reserve the right to do so and
cover the costs associated with the audit from the Fund. Otherwise, we will prepare and make available to our
franchisees, upon request, a basic accounting of the Fund for a given fiscal year after 120 days have passed since
that year end. Any company-owned or affiliate-owned Studios we may open will contribute to the Fund at the rate
provided in our Franchise Disclosure Document. Should the advertising contribution for the System decrease at
any time, we have the right to reduce our contribution from company-owned or affiliate-owned Studios to the rate
specified for franchised locations.
We are not required to spend all Fund contributions in the fiscal year they are received. You agree to
participate in all Fund programs. The Fund may furnish you with marketing, advertising and promotional
materials; however, we may require that you pay the cost of producing, shipping and handling for such materials.
Below please find a breakdown of how the Fund Contributions were expended in our past fiscal year
ending December 31, 2020 and, as noted, we expended more in Fund Contributions than was actually collected
last fiscal year:
Expenditure Category Percentage (of Fund Contributions Collected)

Production 4%
Media and Public Relations 6%
Administration and Implementation Costs/Expenses 69%
Internet/Digital-Related 21%

E. Training
Initial Training and Programs
Prior to opening your Franchised Business, you must ensure that: (i) you or your Designated Operator
completes the Owner/Operator Module of the Initial Training Program described below, which will typically last
approximately three (3) business days at our corporate headquarters in Irvine, CA or another training facility we
designate (most likely in California); (ii) your Designated Manager (if appointed) attends and completes the
Designated Manager Module described below; and (iii) at least one (1) (but most likely 2-3) of your initial instructors
complete(s) the Flexologist Training Program necessary to become an Authorized Flexologist and provide the
Approved Services at your Studio in accordance with System Standards (and that all corresponding FTP Tuition
Fees are paid prior to such training being provided). While there is no specific deadline by which you must complete
the Initial Training Program, the foregoing training must be completed to our satisfaction prior to opening your
Studio.
In the event you are the owner of multiple Studios or otherwise wish to appoint a third-party individual to
manage the day-to-day operations of your Franchised Business, then that Designated Manager must complete the
Designated Manager Module described below and be approved by us before assuming any management
responsibility at your Franchised Business. (Franchise Agreement, Sections 5.7 and 6.3). We do not charge a tuition
or training fee for you or your designated trainees (the Designated Operator and, if appropriate, Designated Manager)
to attend their assigned training program module(s) below, provided these individuals attend prior to the opening of
your Studio.
You will be responsible for the costs and expenses associated with these individuals attending this initial
training (Franchise Agreement, Section 5.7). Our primary initial training programs as of the Issue Date of this
Disclosure Document are described below, certain portions of which may be provided via online, remote instruction
via webinar or similar learning management system:
TRAINING PROGRAM(S)
I. Owner/Operator Module (to be completed by Franchisee or Operating Principal)
Owner/Operator Module
Hours of
Hours of
Subject On-The-Job Location
Classroom Training
Training
At our corporate headquarters
History and Philosophy 1 0
in Irvine, CA.
Real Estate 2 0
in Irvine, CA.
Construction 1.5 0
in Irvine, CA.
Expectations and At our corporate headquarters
Obligations 1 0 in Irvine, CA.
Studio and Equipment At our corporate headquarters
Set- Up and Support 1 0 in Irvine, CA.
Stretching Services 1 0 in Irvine, CA.
Products 1.5 0 in Irvine, CA.
Intro to Studio At our corporate headquarters
Management Software 1.5 0 in Irvine, CA.

Owner/Operator Module
Hours of
Hours of
Subject On-The-Job Location
Classroom Training
Training
Sales and Operations 3.5 0 in Irvine, CA.
Finance 3 0 in Irvine, CA.
Staffing and HR Support 1 0 in Irvine, CA.
Marketing 3 0 in Irvine, CA.
Training Re-Cap and At our corporate headquarters
Summation 1 0 in Irvine, CA.
Test 1 0 in Irvine, CA.
TOTAL HOURS FOR
OWNER/OPERATOR 23 hours 0 hours
MODULE
II. Designated Manager Training Module (if applicable)
Designated Manager Training Module

Hours of Hours of
Subject Classroom On-The-Job Location
Training Training
Ingredients of a Successful At our corporate headquarters in
GM 1 0 Irvine, CA.
Studio Management At our corporate headquarters in
Software 3 0 Irvine, CA.
At our corporate headquarters in
Prospect Generation 2 0 Irvine, CA.
Pre-Sale, Soft Open, and At our corporate headquarters in
Grand Open 1 0 Irvine, CA.
Retail Sales 1 0 Irvine, CA.
Flexologist Training Sales At our corporate headquarters in
and Program 1 0 Irvine, CA.
Sales Process: Demo
Stretches and 4 0 Irvine, CA.
Memberships
Marketing 2 0 Irvine, CA.
1:1 Stretching Services 1 0 Irvine, CA.
Sales: Roll-Play & At our corporate headquarters in
Agreement Write-Up 2 0 Irvine, CA.
Stretch Lab Group Stretch 1 0 Irvine, CA.
Designated Manager Training Module
Hours of Hours of
Training Training
“What Not to Do” 1 0 Irvine, CA.
Comprehension Exam 1 0 Irvine, CA.
TOTAL HOURS FOR
DESIGNATED 21 Not Applicable
MANAGER MODULE
III. Flexologist Training Program (to be completed by any instructor that wishes to provide Approved
Services at your Studio)
FTP: Theory Module (Part 1) – Completed Online via Remote Instruction
Hours of Hours of
Classroo On-the-
Subject Location
m Job
Training Training
Introductions and outline of certification program 15 mins 0 Online/Remote
Instructions and how to use Canvas 15 mins 0 Online/Remote
Lesson 1. Stretching and its place in exercise. Online/Remote
Stretching is a long term solution, not a quick fix.
You don’t need to stretch everything. Anatomical 3 hours 0
directions, planes, movements. Skeletal system.
Muscular system, contractions, group actions.
Online test for Lesson 1 20 minutes 0 Online/Remote
Lesson 2. Benefits of stretching. Stretching Online/Remote
definitions. What is stretching? Stretching 3 hours 0
physiology. Major muscles of the neck and trunk.
Lesson 3.Causes and dangers of poor flexibility. What Online/Remote
are we stretching? What are we not stretching?
Common over-stretched areas. Tips for improving 3 hours 0
flexibility. Major muscles of the shoulder and upper
arm.
Lesson 4. Types of flexibility. Types of stretching. Online/Remote
Benefits and uses of each type. Best type for… Major 3 hours 0
muscles of the forearm and hand.
Lesson 5. Stretching rules. Working with aches, pains Online/Remote
3 hours 0
and injuries. Major muscles of the hip and thigh.

FTP: Theory Module (Part 1) – Completed Online via Remote Instruction
Hours of Hours of
Classroo On-the-
Subject Location
m Job
Training Training
Lesson 6. Stretching from the core out. Balance, Online/Remote
imbalance and muscle tightness. Proper technique and 3 hours 0
alignment. Major muscles of the leg and foot.
Not Online/Remote
20.5 hours Applicabl
Total hours for Theory Module (Part 1) Only
e
FTP: Practical Module (Part 2)

Homework (Watch prior to Day 1): Video Topics
Hours of Hours of
Training Training
Option 1: Remote attendance at
your Studio
Option 2: Stretch Lab Corporate
History & Culture 15 mins 0
Office in Irvine, CA or Studio
nearby
Option 3: Hosted at your Studio
your Studio
Sales & DEMO one-on-one sessions Option 2: Stretch Lab Corporate
1.5 hour 0
and DEMO group classes Office in Irvine, CA or Studio
nearby
your Studio
Retail 15 mins 0
nearby
your Studio
Social Media 15 mins 0
nearby
your Studio
Business Management Software for Option 2: Stretch Lab Corporate
30 mins 0
Studio Operations Office in Irvine, CA or Studio
nearby
your Studio
nearby
Stretch Lab Programming 15 mins 0
FTP: Practical Module (Part 2)

Day 1: In-Studio Practical Learning
Hours of Hours of
Training Training
Introductions and outline of Day 1 Office in Irvine, CA or Studio
0 20 mins
and Day 2. nearby
One-on-one stretches for the neck Office in Irvine, CA or Studio
0 1.5 hours
and trunk. nearby
One-on-one stretches for the Office in Irvine, CA or Studio
0 1.5 hours
shoulder and upper arm. nearby
One-on-one stretches for the forearm Office in Irvine, CA or Studio
0 40 mins
and hand. nearby
Group class stretches for the neck Office in Irvine, CA or Studio
0 1.5 hours
and trunk. nearby
Group class stretches for the Office in Irvine, CA or Studio
0 1.5 hours
shoulder and upper arm. nearby
Group class stretches for the forearm Office in Irvine, CA or Studio
0 30 mins
and hand. nearby

Hours of Hours of
Training Training
Review of one-on-one stretches from Office in Irvine, CA or Studio
0 30 mins
yesterday. nearby
Review of group class stretches from Office in Irvine, CA or Studio
0 30 mins
yesterday nearby
One-on-one stretches for the hip and Office in Irvine, CA or Studio
0 1.5 hours
thigh. nearby
One-on-one stretches for the leg and Office in Irvine, CA or Studio
0 1.5 hours
foot. nearby
Group class stretches for the hip and Office in Irvine, CA or Studio
0 1.5 hours
thigh. nearby
Group class stretches for the leg and Office in Irvine, CA or Studio
0 1.5 hours
foot. nearby
Revision as needed. 0 30 mins
nearby
Total hours for Practical Module
3 hours 15 hours
(Part 2) Only
FTP: Onboarding Module (Part 3)

Hours of Hours of On-
Subject Classroom the-Job Location
Training Training
Introductions and outline of Day 1 Office in Irvine, CA or Studio
0 20 mins
and Day 2 nearby
Quick review of videos- time for Office in Irvine, CA or Studio
0 20 mins
questions nearby

Stretch Lab Equipment Overview 0 20 mins
nearby
The Stretch Lab way (Working from Office in Irvine, CA or Studio
0 20 mins
the core out & Alignment) nearby
Flow (Progressions + Transitions + Office in Irvine, CA or Studio
0 20 mins
Creative Sequencing) nearby
Level Appropriateness & mixed Office in Irvine, CA or Studio
0 20 mins
levels nearby
One-on-one sessions (Questions to Option 1: Stretch Lab Corporate
ask your client, Identifying tight Office in Irvine, CA or Studio
0 2 hours
spots and problem areas, nearby
Customizing the routine) Option 2: Hosted at your Studio
Practice one-on-one sessions 0 2 hours
nearby
Small group classes (Neutral
Alignment, Working with mixed 0 2 hours
nearby
levels)
Additional Private Training if Office in Irvine, CA or Studio
0 30 mins
required nearby
FTP: Onboarding Module (Part 3)

Day 2: In-Studio Revision and Assessment
Hours of Hours of On-
Subject Classroom The-Job Location
Training Training
Review key points from Day 1 and Office in Irvine, CA or Studio
0 1 hour
answer questions as needed nearby
Practice one-on-one sessions 0 1.5 hour
nearby
Practice group classes 0 1.5 hour
nearby
Assessment on one-on-one session Office in Irvine, CA or Studio
0 2 hours
and feedback for each Flexologist nearby
Assessment on group class and Office in Irvine, CA or Studio
0 2 hours
feedback for each Flexologist nearby
Total hours for Onboarding
Not Applicable 16.5 hours
Module (Part 3)
TOTAL HOURS FOR ENTIRE
FLEXOLOGIST TRAINING 23.5 hours 31.5 hours
PROGRAM (Parts 1 -3)
Austin Martinez, our Director of Education, will oversee most aspects of the initial training program. Mr.
Martinez has about three (3) years of experience with our brand via his experience with us and other Studio
operations in the past, as well as over seven (7) years of experience in the majority of topics set forth in the Charts
above via his experience in the fitness industry generally. Brad Walker, our Chief Stretch Advisor – whose
biography is also listed in Item 2 – will also assist in overseeing the training program at times and provide
instruction of certain of the topics listed in the Charts above. Mr. Walker has over 20 years of experience in the
fitness industry, and has been with us or our affiliate since December 2017. Brad has been with us since our
inception, and has over ten (10) years of experience in the topics he will be providing instruction on.
We normally conduct our training monthly, as needed, but we reserve the right to change this schedule
based on (a) demand, and (b) the availability of our instructors. Our primary instruction is through hands-on
training, videos, the Manual and other instructional materials we prepare specifically for one (1) or more of the
initial training programs above in this Item. We may substitute other instructors to provide certain parts of the
different initial training modules described in this Item 11, but these individuals will have all completed the
appropriate portion of the Initial Training Program on which they provide instruction.
On-Site Grand Opening Assistance (Discretionary)
Around the time you first open your Studio, we may send one (1) or more representatives to your Studio
to (a) provide assistance and recommendations regarding your opening and initial operations, and/or (b) provide
additional or refresher training associated with the Owner/Operator Module and/or Orientation Program, as we
deem appropriate in our discretion. If we determine to provide such on-site assistance, it will typically last between
1-2 business days.
Flexologist Training Program – Fees and Involvement of Franchisor
We may permit you to provide the Flexologist Training Program at your Franchised Business as part of
your Approved Services, provided you have an Authorized Flexologist that has met our then-current criteria to
serve as a Master Trainer of the Flexologist Training Program. We may modify the Flexologist Training Program
in any manner we deem appropriate in the Manuals or otherwise in writing. (Franchise Agreement, Section 6.3).
As of the Issue Date of this Disclosure Document, the FTP Tuition Fee is $1,499/trainee, with $1,000 payable to
us for the intellectual property and training materials associated with the Program, and the remaining $499 is
retained by the System owner that supplies the Master Trainer to provide the FTP provided (the “FTP Owner
Remuneration”).

Additional Training in Connection with Operation of the Franchised Business
We may also provide, and require that you (and your Designated Operator and Designated Manager, as
appropriate) attend, up to five (5) days of additional training each year at our designated training facility. We will
not charge any training fee in connection with such training that we require you to attend. (Franchise Agreement,
Section 6.3).
You may request that we provide certain additional or refresher training to you, either at one (1) of our
designated training facilities or on-site at your Franchised Business. We reserve the right to charge you our then-
current training fee based on the number of days of such training that we provide at your request (regardless of
location). (Franchise Agreement, Section 6.3).
You will be responsible for the costs and expenses associated with you and your designated personnel
attending any such additional training described in this Item. (Franchise Agreement, Sections 5.7 and 6.3).
F. Computer System - Hardware and Software
You must acquire a front desk computer, a tablet computer that is capable of running all software we
designate or otherwise require you to use in connection with your franchised Studio (collectively, the “Required
Software”), including our designated business management software. You must record all of your receipts,
expenses, invoices, member lists, class and employee schedules, and other business information promptly utilizing
all appropriate Required Software. Currently, our designated business management software is an online/web-
based program that is designed to facilitate class scheduling, process member credit and debit card payments, and
keep your business records and generating business reports (among other things). At this time, we have approved
no other compatible program but we reserve the right to do so at our sole discretion. If the approved supplier for
the required software changes, you must migrate your operations to the new required software at our direction.
The details of these standards and requirements will be described in the Manual or otherwise in writing and may
be modified in response to changes in marketing conditions, business operating needs, or technology. (Franchise
Agreement, Sections 5.4, 5.6 and 10.3).
You must allow our approved supplier to upgrade the proprietary database configuration of the required
software for the computer in your Studio as we determine necessary. Our approved supplier may provide you
periodic updates to maintain the software and may charge a fee for preparing the updates and maintaining the
software. There are no limitations on the frequency and cost of the updates. The system is designed to enable us
to have immediate, independent access, including access through a file transfer protocol or polling through the
internet, to the information monitored by the system, and there is no contractual limitation on our independent
access or use of the information we obtain. (Franchise Agreement, Sections 5.4 and 10.3).
You must purchase or lease, and thereafter maintain, such computer hardware and software, dedicated
high speed communications equipment and services, dedicated telephone and power lines, modem(s), speakers,
and other computer-related accessories or peripheral equipment as we may specify, for the purpose of, among
other functions, recording Studio sales, scheduling classes, and other functions that we require. You must provide
such assistance as may be required to connect your computer system with a computer system used by us. We will
have the right, on an occasional or regular basis, to retrieve such data and information from your computer system
as we, in our sole and exclusive discretion, consistent with consumer privacy laws, deem necessary. You must
operate your computer system in compliance with certain security standards specified by us, which may be
modified at our discretion from time to time. In view of the interconnection of computer systems and the necessity
that such systems be compatible with each other, you expressly agree that you will strictly comply with our
standards and specifications for all item(s) associated with your computer system, and will otherwise operate your
computer system in accordance with our standards and specifications. (Franchise Agreement, Sections 5.4 and
10.3).

To ensure full operational efficiency and optimal communication capability between and among computer
systems installed by you, us, and other System franchisees, you agree, at your expense, to keep your computer
system in good maintenance and repair, and following our determination that it will be economical or otherwise
beneficial to the System to promptly install such additions, changes, modifications, substitutions and/or
replacement to your computer hardware, software, communications equipment and services, telephone and power
lines, and other computer-related facilities, as we direct.
We reserve the right to require you to update or upgrade any computer hardware or software during the
term of the franchise, and if we choose to do so, there are no limitations on the cost and frequency of this
obligation. The approximate cost of the current Computer System components, which include a front desk
computer, around three (3) tablets, printer and credit card swiper, will cost between $2,000 and $3,500. There is
no initial fee to obtain the Required Software and, as of the Issue Date, you must pay us our then-current
Technology Fee (amounting to $275/month) and POS software fees charged by our Approved Supplier
(amounting to $145/month). The approximate cost of any annual maintenance upgrades or updates or maintenance
support contracts varies widely from $0 to $800 (not including these fees).
We reserve the right to implement our own technology support and maintenance service, and charge a fee
in connection therewith. We have no obligation to provide ongoing maintenance, repairs, upgrades or updates,
and any such obligations would be those of the software licensors.
ITEM 12
TERRITORY
Franchise Agreement
Authorized Location and Relocation
You will operate the Studio at a specific location approved by us (referred to as your “Authorized
Location”). Once you have secured your Authorized Location, we will provide you a Designated Territory within
which you will have certain protected rights.
You will not be permitted to relocate your Studio without our prior written approval, which may be
withheld in our discretion. You will be assessed a relocation fee of $5,000 at the time you submit the proposed
location for your relocated Studio. Generally, we do not approve requests to relocate your Studio after a site
selection has been made and you have opened for business unless (a) it is due to extreme or unusual events beyond
your control, and (b) you are not in default of your Franchise Agreement. If we approve your relocation request,
we retain the right to approve your new site location in the same manner and under the same terms that are applied
to your first site selection.
Designated Territory
Your Designated Territory may contain up to 50,000 people and will typically be comprised of the
geographic area encompassed within a given radius around your Studio location. If your Designated Territory is
such a radius, then that radius may be anywhere from two (2) blocks to two (2) miles around your Studio location
depending on (a) the population density and other demographics of the area, (b) any existing territorial rights
granted in connection with existing Studios, and (c) whether your location is considered part of a major
metropolitan area, other downtown area or similar situated central business district that has a large “working
population” during relevant operating hours for surrounding businesses (referred to as a “Central Business
District”).
Importantly, the size of your Designated Territory may vary from the territory granted to other franchisees
based on the location and demographics surrounding your Studio. Your Designated Territory may not be

comprised of a typical radius around your Studio location if such a radius would encompass the location of another
previously-developed Studio.
The boundaries of your Designated Territory may be described in terms of zip codes, streets, landmarks
(both natural and man-made) or county lines, or otherwise delineated on a map. If we determine to base your
territory on population, the sources we use to determine the population within your Designated Territory will be
based on (a) our then-current territory mapping software, or (b) publicly available population information (such
as data published by the U.S. Census Bureau or other governmental agencies and commercial sources).
If you have been granted a Designated Territory, neither we nor our affiliates will open or locate, or
authorize any third party the right to open or locate, another Studio utilizing the Marks and System from a physical
location within your Designated Territory. For this reason, your Designated Territory is deemed “exclusive” under
applicable franchise disclosure laws. Please note our reserved rights described later in this Item.
Your Designated Territory will not be modified by Franchisor for any reason so long as you are not in
default of your Franchise Agreement, except in cases where (a) your requested relocation of your Studio is
approved and you relocate, and/or (b) at the time of any requested renewal or proposed assignment of the franchise,
the population of the Designated Territory is over 50,000. In such cases, we may move or modify the size of your
Designated Territory.
Except as expressly provided in the Franchise Agreement, you have no right to exclude, control or impose
conditions on the location, operation or otherwise of present or future Studios, using any of the other brands or
Marks that we now, or in the future, may offer, and we may operate or license Studios or distribution channels of
any type, licensed, franchised or company-owned, regardless of their location or proximity to the premises and
whether or not they provide services similar to those that you offer. You do not have any rights with respect to
other and/or related businesses, products and/or services, in which we may be involved, now or in the future.
While you and other Stretch Lab Studios will be able to provide the Approved Services to any potential
client that visits or otherwise reaches out to your Studio, you will not be permitted to actively solicit or recruit
clients outside your Designated Territory, unless we provide our prior written consent. You will not be permitted
to advertise and promote your Franchised Business via advertising that is directed at those outside your Designated
Territory without our prior written consent, which we will not unreasonably withhold provided (a) the area you
wish to advertise in is contiguous to your Designated Territory, and (b) that area has not been granted to any third
party in connection with a Studio (or Development Agreement) of any kind.
We may choose, in our sole discretion, to evaluate your Studio for compliance with the System Standards
using various methods (including, but not limited to, inspections, field service visits, surveillance camera
monitoring, member comments/surveys, and secret shopper reports). You must meet minimum standards for
cleanliness, equipment condition, repair and function, and customer service. Your employees, including
independent contractors, must meet minimum standards for courteousness and customer service. (Franchise
Agreement, Section 8.8A)
Unless waived by us due to unique market conditions, you must meet a certain Minimum Monthly Gross
Revenue Quota. If Franchisee fails to achieve and maintain average monthly gross revenues of $30,000 by the 1st
year anniversary of the opening of the Studio and average monthly gross revenues of $40,000 by the end of the
2nd year anniversary and each succeeding year thereafter, Franchisor may institute a corrective training program
and/or require Franchisee to perform additional local marketing. If Franchisee fails to meet the Minimum Monthly
Gross Revenue Quota for 36 consecutive months at any time during the term of the Franchise Agreement,
Franchisor may institute a mandatory corrective training program or terminate the Franchise Agreement upon
notice to you.

Development Agreement
If you are granted the right to open three or more Franchised Businesses under our form of Development
Agreement, then we will provide you with a Development Area upon execution of this agreement. The size of
your Development Area will substantially vary from other System developers based on: (i) the number of
Franchised Businesses we grant you the right to open and operate; and (ii) the location and demographics of the
general area where we mutually agree you will be opening these locations. The boundaries of your Development
Area may be described in terms of zip codes, streets, landmarks (both natural and man-made) or county lines, or
otherwise delineated on a map attached to the Data Sheet.
Each Franchised Business you timely open and commence operating under our then-current form of
franchise agreement will be operated: (i) from a distinct site located within the Development Area that we approve,
in accordance with our then-current site selection criteria; and (ii) within its own Designated Territory that we will
define once the site for that Franchised Business has been approved.
We will not own or operate, or license a third party the right to own or operate, a Studio utilizing the
Marks and System within the Development Area until the earlier of: (i) the date we define the Designated Territory
of the final Franchised Business you were granted the right to operate under the Development Agreement; or (ii)
the expiration or termination of the Development Agreement for any reason. Your Development Area will be
exclusive during this time period.
Upon the occurrence of any one of the events described in the preceding paragraph, your territorial rights
within the Development Area will be terminated, except that each Franchised Business that you have opened and
are continuously operating as of the date of such occurrence will continue to enjoy the territorial rights within
their respective Designated Territories that were granted under the franchise agreement(s) you entered into for
those Franchised Business(es).
You must comply with your development obligations under the Development Agreement, including your
Development Schedule, in order to maintain your exclusive rights within the Development Area. If you do not
comply with your Development Schedule, we may terminate your Development Agreement and any further
development rights you have under that agreement. Otherwise, we will not modify the size of your Development
Area except by mutual written agreement signed by both parties.
Reserved Rights
We and our parent/affiliates reserve the exclusive right to conduct the following activities under the
Franchise Agreement and/or Development Agreement (as appropriate): (i) establish and operate, and license any
third party the right to establish and operate, other Studios and Franchised Businesses using the Marks and System
at any location outside of your Designated Territory(ies) and, if applicable, Development Area; (ii) market, offer
and sell products and services that are similar to the products and services offered by the Franchised Business
under a different trademark or trademarks at any location, within or outside the Designated Territory(ies) and, if
applicable, the Development Area; (iii) use the Marks and System, as well as other such marks we designate, to
distribute any Approved Products and/or Services in any alternative channel of distribution, within or outside the
Territory(ies) and Development Area (including the Internet, mail order, catalog sales, toll-free numbers,
wholesale stores, etc.), as further described below; (iv) to acquire, merge with, or otherwise affiliate with, and
after that own and operate, and franchise or license others to own and operate, any business of any kind, including,
without limitation, any business that offers products or services the same as or similar to the Approved Products
and Services (but under different marks), within or outside your Designated Territory(ies) and, if applicable,
Development Area; and (v) use the Marks and System, and license others to use the Marks and System, to engage
in any other activities not expressly prohibited in your Franchise Agreement and, if applicable, your Development
Agreement.

Neither the Franchise Agreement nor Development Agreement grants you any right to engage in any of
the activities outlined in the preceding paragraph, or to share in any of the proceeds received by us, our
parent/affiliates or any third party from these activities, unless we otherwise agree in writing. Further, we have
no obligation to provide you any compensation for soliciting or accepting orders (via alternate channels of
distribution) within your Territory.
Internet Sales / Alternative Channels of Commerce
We may sell products and services to members located anywhere, even if such products and services are
similar to what we sell to you and what you offer at your Studio. We may use the internet or alternative channels
of commerce to sell branded products and services. You may only sell the products and services from your
approved Studio location, and may only use the internet or alternative channels of commerce to offer or sell the
products and services, as permitted by us, in order to register members for classes. We may require you to submit
samples of all advertising and promotional materials (and any use of the Marks and/or other forms of commercial
identification) for any media, including the Internet, World Wide Web or otherwise. We retain the right to approve
or disapprove of such advertising, in our sole discretion. Any use of social media by you pertaining to the Studio
must be in good taste and not linked to controversial, unethical, immoral, illegal or inappropriate content. We
reserve the right to "occupy" any social media websites/pages and be the sole provider of information regarding
the Studio on such websites/pages (e.g., a system-wide Facebook page). At our request, you will promptly modify
or remove any online communication pertaining to the Studio that does not comply with the Franchise Agreement
or the Manual. You are not prohibited from obtaining members over the Internet provided your Internet presence
and content comply with the requirements of the Franchise Agreement.
Additional Disclosures
Neither the Franchise Agreement nor the Development Agreement provides you with any right or option
to open and operate additional Franchised Businesses (other than as specifically provided for in your Development
Agreement if you are granted multi-unit development rights). Regardless, each Franchised Business you are
granted the right to open and operate must be governed by its own specific form of Franchise Agreement.
We have not established other franchises or company-owned outlets or another distribution channel
offering or selling similar products or services under a different trademark. We have not established, nor do we
presently intend to establish, other franchised or company-owned businesses that are similar to the Franchised
Business and that sell our Approved Products and Services under a different trade name or trademark, but we
reserve the right to do so in the future without your consent. Certain of our affiliates are involved with franchising
and other activities as previously disclosed in Item 1 of this Disclosure Document, and such affiliates reserve the
right to continue conducting franchising and other activities.
ITEM 13
TRADEMARKS
We grant you a limited license to use the then-current Marks we designate in connection with the operation
of your franchised Studio. We may supplement, substitute and/or otherwise modify the Marks we designate for
licensing in connection with our System and your Studio as we determine appropriate in our discretion. As of the
Issue Date, we current license our System franchisees the right to use the following Marks that are registered and
owned by our affiliate, Stretch Lab, LLC, on the Principal Register of the United States Patent and Trademark Office
(the “USPTO”):
Mark Registration No. Registration Date
STRETCH LAB 5,177,075 April 4, 2017

Mark Registration No. Registration Date
FLEXOLOGIST 5,312,544 October 17, 2017
We expect and intend to submit all affidavits and other filings necessary to maintain the registrations
above. We assert common law rights with respect to certain of our Marks since based on that date the Marks were
first used in commerce.
There are no presently effective determinations of the United States Patent and Trademark Office, the
Trademark Administrator of any state, or any court, nor any pending material litigation involving any of the Marks
(other than the litigation disclosed in Item 3) which are relevant to their use in any state. There are no pending
interference actions or opposition or cancellation proceedings that significantly limit our rights to use, or license
the use of, the Marks in any manner material to the System. We have filed all required affidavits for the Marks
and will continue to do so. None of the Marks’ registrations have come up for renewal at this point so we have
not yet renewed any of the Marks’ registrations.
If it becomes advisable, in our sole discretion, for us to modify or discontinue use of any of the Marks, or
use one or more additional or substitute Mark, you must comply with our directions to modify or otherwise
discontinue the use of such Mark within a reasonable time after notice by us. We will not be obligated to
compensate you for any costs you incur in connection with any such modification or discontinuance.
You must immediately notify us of any apparent infringement of or challenge to your use of the
mark. Although not obligated to do so, we will take any action deemed appropriate and will control any
litigation or proceeding. You must cooperate with any litigation relating to the Marks which we or our affiliates,
or the Licensor, might undertake. We will have the right, but the Franchise Agreement does not require us, to
indemnify you for expenses or damages if you are a party to an administrative or judicial proceeding involving
any of the Marks, or subject to an unfavorable administrative or judicial determination.
We are not aware of any prior superior rights or infringing uses that would materially affect your use of
the Marks. But, there is always a possibility that there might be one or more businesses, similar to the business
covered by the Franchise, operating in or near the area(s) where you may do business, using a name, trademark
and/or trade dress similar to the Marks and with superior rights to the name and/or trademark. We strongly urge
you to research this possibility, using telephone directories, local filings and other means, before you pay any
money, sign any documents or make any binding commitments. If you do not research the possibility of other
trademarks in this business, you may be at risk.
As of the Issue Date, there are no agreements currently in effect, which significantly limit our rights to
use or license the use of the Marks.
ITEM 14
PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION
We do not own any registered patents or pending patent applications that are material to the franchise.
We do, however, claim common law copyright and trade secret protection for several aspects of the franchise
System including, without limitation, our Manual, certain forms, advertisements, promotional materials, source
code, training materials, advertising, business materials and other Confidential Information as defined below.
There currently are no effective determinations of the Copyright Office (or any court regarding any of the
copyrighted materials. There are no agreements in effect which significantly limit our right to use or license the
copyrighted materials. Finally, there are no infringing uses actually known to us that could materially affect your

use of the copyrighted materials in any state. No agreement requires us to protect or defend any copyrights or you
in connection with any copyrights.
In general, our proprietary information includes “Confidential Information” as defined in Section 12 of

the Franchise Agreement, some of which is contained in our Manual, and includes, among other things, all
information (current and future) relating to the operation of the Studio or the System, including, among other
things, all: (i) manuals, training, techniques, processes, policies, procedures, systems, data and know how
regarding the development, marketing, operation and franchising of the Studios; (ii) designs, specifications and
information about products and services and (iii) all information regarding members and suppliers, including any
statistical and/or financial information and all lists. We disclose to you Confidential Information needed for the
operation of a Stretch Lab franchise, and you may learn additional information during the term of your franchise.
We have all rights to the Confidential Information and your only interest in the Confidential Information is the
right to use it under your Franchise Agreement.
Both during and after the term of your Franchise Agreement, you must use the Confidential Information
only for the operation of your Studio under a Stretch Lab Franchise Agreement; maintain the confidentiality of
the Confidential Information; not make or distribute, or permit to be made or distributed, any unauthorized copies
of any portion of the Confidential Information; and (iii) follow all prescribed procedures for prevention of
unauthorized use or disclosure of the Confidential Information. (Franchise Agreement, Section 12)
We have the right to use and authorize others to use all ideas, techniques, methods and processes relating
to the Studio that you or your employees conceive or develop.
You also agree to fully and promptly disclose all ideas, techniques and other similar information relating
to the franchise business that are conceived or developed by you and/or your employees. We will have a perpetual
right to use, and to authorize others to use, those ideas, etc. without compensation or other obligation.
ITEM 15
OBLIGATION TO PARTICIPATE
IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
Under the Franchise Agreement, we do not require, but do recommend, that you (or the Designated
Operator) personally supervise the Studio. You may appoint a Designated Manager we approve to manage daily
operations of your Studio. We will not unreasonably withhold our approval of any Designated Manager you
propose, provided the individual has successfully completed the Owner/Operator Module of our Initial Training
Program and, if that individual will be providing any Approved Services, the Flexologist Training Program (or
FTP). Once approved, your Designated Manager may assist in the direct, day-to-day supervision of the operations
of the Studio, or to be the on-premises supervisor if you choose not to personally supervise the Studio. If you are
a business entity, your Designated Manager need not hold an ownership interest in the business to be the on-
premises supervisor.
You are solely responsible for the hiring and management of the Studio employees, for the terms of their
employment and for ensuring their compliance with any training or other requirements established by us. You
will keep us advised, in writing, of any Designated Manager involved in the operation of the Studio and their
contact information. Your Franchised Business must, at all times, be managed by and staffed with at least one (1)
individual who has successfully completed the Owner/Operator Module of our Initial Training Program.
It is important to note that we are not your employer, and that you will have the right and responsibility
to control all decisions related to recruiting, hiring or firing any personnel, including any therapists or other
specialized/licensed personnel you use to perform the Approved Services at your franchised Studio. Please note
that nothing in this Disclosure Document or any agreement you enter into with us will create any type of employer
or joint employer relationship between (a) you and/or your personnel, and (b) us.

You and your managers and employees must comply with the confidentiality provisions described in Item
14. You must execute a personal guaranty concurrently with the signing of the Franchise Agreement. If you are a
legal entity, having more than one owner, all owners, shareholders, partners, joint venturers, and any other person
who directly or indirectly owns a 10% or greater interest in the franchised business must execute a personal
guaranty.
ITEM 16
RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You must offer for sale and sell only and all those Approved Products and Services, and deal only with
those suppliers, that we authorize or require, and have authorized (See Item 8). Principally, this means you must
purchase the amount and type of equipment, including stretch benches and other apparatuses and exercise
equipment, and offer only those types of stretch and fitness classes that we authorize. Failure to comply with our
purchasing restrictions may result in the termination of your Franchise Agreement. We may supplement, revise
and/or modify our Approved Products and Services as we deem appropriate from time to time, as well as our
System standards and specifications associated with the provision of these products/services. These changes will
be outlined in our Manuals or otherwise in writing, and there are no contractual limitations on our right to make
these types of changes.
If we discontinue any Approved Product or Service offered by the Franchised Business, then you must
cease offering or selling such product/service within a reasonable time, unless such product/service represents a
health or safety hazard (in which case you must immediately comply upon receipt of notice from us). You may
not use the location of your Franchised Business for any other business purpose other than the operation of your
Franchised Business. You must also ensure that you comply and respect all System policies and procedures
regarding Member reciprocity amongst other Studio locations, and if and when made available to such Members,
any reciprocity and/or universal pass to attend classes at the fitness studios operated under our affiliate franchisors’
respective brands.
You may not advertise, offer for sale or sell, any products and/or services that we have not authorized.
We reserve the right to change the types of authorized products and services at any time in our discretion. You agree
to promptly undertake all changes as we require from time to time, without limit, except we will not require you
to thoroughly modernize or remodel the Studio any more often than once every 5 years. You will not make any
material alterations to your Studio or its appearance as originally approved by us without our prior written
approval.
You must refrain from any merchandising, advertising, or promotional practice that is unethical or may be
injurious to our business and/or other franchised businesses or to the goodwill associated with the Marks. Subject to
the conditions set forth above, we do not impose any restrictions with regards to the customers to whom you may
sell goods and services. (Franchise Agreement, Section 4.2).
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ITEM 17
RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
A. Franchise Agreement
This table lists certain important provisions of the franchise and related agreements. You should
read these provisions in the agreements attached to this Disclosure Document.
Paragraph In
Provision Summary
Agreement
a. Length of the franchise Franchise Agreement: The term is 10 years from the date the Franchise
term Paragraph 3.1 Agreement is signed.
b. Renewal or extension of Franchise Agreement: You have the option to extend the term for two
term Paragraph 3.2 consecutive 5 year periods.
c. Requirements for renewal or Franchise Agreement: You have complied with all of the Franchise
extension Paragraphs 3.2, 3.3, and Agreement provisions; you are not in default of
3.4 the Franchise Agreement; you have brought the
Studio into compliance with our current
standards; you have given us notice of renewal
no less than 90 days nor more than 180 days prior
to the end of the initial term; you have signed a
then-current form of Franchise Agreement,
which may contain materially different terms
than the term of your original Franchise
Agreement; you have signed a general release in
substantially the form of Exhibit F to this
Disclosure Document (subject to applicable state
law); and you pay us a renewal fee equal to
$10,000.
d. Termination by franchisee Franchise Agreement: Not applicable.
Not Applicable
e. Termination by franchisor Franchise Agreement: The Franchise Agreement does not provide for
without cause Not Applicable termination without cause.
f. Termination by franchisor Franchise Agreement: We may terminate the Franchise Agreement
with cause Paragraph 15.1 upon delivery of notice to you if you default
under the terms of the Franchise Agreement, as
further outlined below.
g. “Cause” defined – curable Franchise Agreement: The following constitute curable defaults: you
defaults Paragraph 15.1B fail to comply with the Performance Standards;
or refuse to make payments due and do not cure
within 10 business days; or fail to comply with
any provision of the Franchise Agreement not
otherwise mentioned in (h.) below or any

Paragraph In
Provision Summary
Agreement
mandatory specification and do not cure within
the applicable cure period. Some defaults have 10
calendar day cure periods and some have 30
calendar day cure periods.
h. “Cause” defined – Franchise Agreement: The following events constitute non-curable
non-curable defaults Paragraph 15.1A defaults: failure to properly establish and equip
the premises; failure to complete training; make
a material misrepresentation or omission in the
application for the franchise; conviction or plea
of no contest to a felony, or other crime or offense
that can adversely affect the reputation of you, us
or the Studio; make unauthorized disclosure of
confidential information; abandonment of the
business for 5 consecutive days unless otherwise
approved; surrender of control of the business;
unauthorized transfer; you are adjudicated
bankrupt, insolvent or make a general assignment
for the benefit of creditors; your misuse of the
Marks; failure on 3 occasions within any 12
consecutive month period, or 4 occasions in any
24 consecutive month period to pay amounts due,
or otherwise to comply with the Franchise
Agreement; violate any health, safety or
sanitation law or conduct your operation in a
manner creating a safety hazard; or violating the
rights and restrictions of your territory; operating
a competing business.
i. Franchisee’s obligation on Franchise Agreement: Your obligations include: stop operations of the
termination/non-renewal Paragraphs 12, 13 and Studio; stop using the Marks and items bearing
15.3 the Marks; stop using the name “STRETCH
LAB” in any form as part of your corporate
name; assign any assumed names to Company;
de-identify the premises from any confusingly
similar decoration, design or other imitation of a
Studio; stop advertising as a Stretch Lab
franchise; pay all sums owed; pay all damages
and costs we incur in enforcing the termination
provisions of the Franchise Agreement; return
the Manual and other confidential information to
us; return all signs to us; assign your telephone
and facsimile numbers, electronic mail and
internet addresses to us; sell to us, at our option,
all assets of the Studio, including inventory,
equipment, supplies and items bearing the
Marks; and comply with the covenants not to
compete.

Paragraph In
Provision Summary
Agreement
j. Assignment of contract by Franchise Agreement: We may sell or assign some or all of our business
franchisor Paragraph 14.6 to any subsidiary or affiliate of Stretch Lab, any
purchaser of Stretch Lab, or any purchaser of the
Marks and related business.
k. “Transfer” by franchisee Franchise Agreement: You may sell or assign your business, but only
definition Paragraph 14.1 with our approval. We have sole discretion over
whether to approve or disapprove an assignment.
l. Franchisor approval of Franchise Agreement: We have the right to approve all your transfers.
transfer by franchisee Paragraphs 14.1 and 14.2 We may place reasonable conditions on our
approval of any transfer.
m. Conditions for franchisor Franchise Agreement: You must be in compliance with all agreements,
approval of transfer Section 14.2 the Manual, all contracts with any party; at our
option, transferee must either (a) execute our
then-current form of franchise agreement, which
may contain materially different terms that the
your Franchise Agreement, to govern the
franchise moving forward, or (b) assume all
obligations under these agreements; transferee
meet our then-current requirements and complete
or agree to complete our training program for
new franchisees; all sums due must be paid; all
obligations to third parties must be satisfied; the
Studio must be in full compliance with the
Manual and standards and specifications for new
Stretch Lab Studios; the transferee must (a) sign
our then-current form of Franchise Agreement,
and (b) satisfactorily complete training within the
time period we prescribe; and the transferor must
pay a $10,000 transfer fee (or other reduced
administrative fee).
n. Franchisor’s right to acquire None There is no right for us to acquire your Studio
franchisee’s business except as outlined below.
o. Franchisor’s option to Franchise Agreement: We have the option, exercisable by giving 30
purchase franchisee’s Section 15.3.I. days’ written notice, to purchase any and all
business inventory, equipment, furniture, fixtures, signs,
sundries and supplies owned by you and used in
the Studio, at the lesser of (i) your cost less
depreciation computed on a reasonable straight
line basis (as determined in accordance with
generally accepted accounting principles and
consistent with industry standards and customs),
or (ii) fair market value of such assets, less (in
either case) any outstanding liabilities of the
Studio. In addition, we have the option to assume
your lease for the lease location of the Studio, or
if an assignment is prohibited, a sublease for the
Paragraph In
Provision Summary
Agreement
full remaining term on the same terms and
conditions as your lease.
p. Death or disability of Franchise Agreement: Must be transferred within six (6) months.
franchisee Paragraph 14.4
q. Non-competition covenants Franchise Agreement: You must not be involved in: (i) any Competing
during the term of the Paragraph 13 Business (as defined in the FA); or (ii) any
franchise business that offers or grants franchises/licenses,
or establishes joint ventures, for the operation of
a Competing Business.
Additionally, you must not (a) employ or seek to

employ any person employed by us or by any of
our other franchisees, (b) otherwise directly or
indirectly induce or seek to induce such person to
leave his or her employment during the term of
the Franchise Agreement, without first obtaining
our consent and, if applicable, the consent of the
other System franchisee, or (c) otherwise take
action to divert business or clientele to any other
Competing Business.
r. Non-competition covenants Franchise Agreement: For a period of 2 years following the

after the franchise is Paragraph 13 expiration/termination of your Franchise
terminated or expires Agreement, you must not operate a Competing
Business: (i) at the Authorized Location; (ii) with
a 10 mile radius of (a) the Authorized Location,
or (b) any other Studio that is open, under lease
or otherwise under development as of the date of
termination/expiration.
Additionally, for a period of 2 years after

termination of the Franchise Agreement, you
must not shall not (i) solicit business from
customers of your former Studio, (ii) contact any
of our suppliers or vendors for any competitive
business purpose, or (iii) subject to and as
permitted by state law, solicit any of our other
employees, or the employees of Franchisor’s
affiliates or any other System franchisee, to
discontinue employment.
s. Modification of the Franchise Agreement: The Franchise Agreement can be modified only
Franchise Agreement Paragraph 19 by written agreement between us and you. We
can modify or change the System through
changes in the Manual.
t. Integration/merger clause Franchise Agreement: Only the terms of the Franchise Agreement are
Paragraph 19 binding (subject to applicable state law) and may

Paragraph In
Provision Summary
Agreement
only be modified to the extent required by an
appropriate court to make the Franchise
Agreement enforceable. Any representations or
promises outside of this Disclosure Document
and other agreements may not be enforceable.
Notwithstanding the foregoing, nothing in any
franchise agreement is intended to disclaim the
express representations made in this Disclosure
Document.
u. Dispute resolution by Franchise Agreement: You must first submit all dispute and
arbitration or mediation Paragraph 16 controversies arising under the Franchise
Agreement to our management and make every
effort to resolve the dispute internally.
At our option, all claims or disputes arising out

of the Franchise Agreement must be submitted to
non-binding mediation, which will take place at
our then-current headquarters (subject to
applicable state law). If the matter is mediated,
the parties will split the mediator’s fees and bear
all of their other respective costs of the
mediation.
Except for our right to seek injunctive relief in

any court of competent jurisdiction and as
otherwise described above, any claim arising out
of or relating to the Franchise Agreement or the
relationship of the parties, and any controversy
regarding the establishment of the fair market
value of assets of the Studio will be resolved in
binding arbitration before a single arbitrator in
Orange County, California (subject to applicable
state law).
v. Choice of forum Franchise Agreement: Any action that is not subject to arbitration must
Paragraph 16.6 be brought in state or federal court in Orange
County, California (subject to applicable state
law).
w. Choice of law Franchise Agreement: The Franchise Agreement is governed by the
Paragraph 16.1 laws of the State of California without reference
to this state’s conflict of laws principles (subject
to state law), except that: (i) any disputes or
actions involving any non-competition
covenants, including the interpretation and
enforcement thereof, must be governed by the
law of the state where the Studio is located; and
(ii) any franchise-specific or franchise-applicable
laws of California, including those related to pre-
sale disclosure and the franchise relationship

Paragraph In
Provision Summary
Agreement
generally, will not apply to this Agreement or
franchise awarded hereunder unless the awarding
of said franchise specifically falls within the
scope of such California laws, regulations or
statutes without reference to and independent of
any reference to this choice of law provision.
(subject to state law)
B. Development Agreement
This table lists certain important provisions of the Development Agreement and related agreements.
You should read these provisions in the agreements attached to this disclosure document.
SECTION IN
DEVELOPMENT
PROVISION AGREEMENT OR SUMMARY
OTHER
AGREEMENTS
a. Length of the term of the Section 1(B), Exhibit B The Development Schedule will dictate the
Development Agreement amount of time you have to open a specific
number of franchises, which will differ for each
Developer and will be specified in Exhibit B of
the Development Agreement.
b. Renewal or extension of the term Not Applicable Not Applicable
c. Requirements for developer to Not Applicable Not Applicable
renew or extend
d. Termination by developer Not Applicable Not Applicable
e. Termination by franchisor Not Applicable Not Applicable
without cause
f. Termination by franchisor with Sections 14 and 15 We may terminate your Development
cause Agreement with cause as described in (g)-(h) of
this Item 17 Chart.
No default under the Development Agreement

shall constitute a default under any franchise
agreement you have entered into with us, unless
your acts or omissions also violate the terms and
conditions of that agreement. Failure to comply
with any material term or material condition
imposed by a franchise agreement executed in
connection your Development Agreement will
constitute grounds for us to default you under
your Development Agreement.
g. “Cause” defined – curable Section 14(B) We may terminate your Development

defaults Agreement after providing notice and a 30-day
cure period (unless a different cure period is
specified below) if: you fail to meet the
SECTION IN
DEVELOPMENT
OTHER
AGREEMENTS
Development Schedule; you fail to develop,
open, and operate each Studio and execute each
Franchise Agreement in compliance with the
Development Agreement; you misappropriate or
misuse the Marks or impair the goodwill of the
Marks or System; fail to make monetary
payment under the Development Agreement or
any Franchise Agreement to us or our affiliate,
and fail to cure within 14 days of receiving
written notice from us; fail to correct a deficiency
of a health, sanitation, or safety issue identified
by a local, state or federal agency or regulatory
authority; or you fail to comply with any other
material term or material condition of the
Development Agreement or any Franchise
Agreement.
h. “Cause” defined – non-curable Section 14(A) We may terminate your Development

defaults Agreement automatically upon written notice if:
you become insolvent or make a general
assignment for the benefit of creditors; file a
bankruptcy petition or are adjudicated bankrupt;
a bill in equity or appointment of receivership is
filed in connection with you; a receiver or
custodian of your assets of property is appointed;
a proceeding for a composition of creditors is
initiated against you; a final judgment is entered
against you and not satisfied within 30 days; if
you are dissolved, execution is levied against
you; a suit to foreclose any lien or mortgage
against any of your Studios is levied; the real or
personal property of a Studio is sold after being
levied upon; you fail to comply with the non-
competition covenants of the Development
Agreement; you or your principal discloses the
contents of the Manuals or other confidential
information; an immediate threat or danger to
public health or safety results from the operation
of a Studio operated by you; you or your
Principal has made a material misrepresentation
in the franchise application; you fail on 3 or more
occasions within a one (1) year period to comply
with a provision of the Development Agreement;
or you fail to comply with the transfer conditions
of the Development Agreement.
i. Developer’s obligations on Section 14(D), Section Upon termination, you have no right to establish
termination/ non-renewal 15 or operate any Studio for which an individual
SECTION IN
DEVELOPMENT
OTHER
AGREEMENTS
Franchise Agreement has not been executed by
us and delivered to you at the time of
termination. All of your obligations under the
Development Agreement which expressly or by
their nature survive the expiration or termination
of the Agreement (including the non-competition
covenants of Section 11), continue in full force
and effect until they are satisfied or by their
nature expire.
j. Assignment of contract by Section 16(A) We have the absolute right to transfer or assign
franchisor the Development Agreement and all or any part
of its rights, duties or obligations to any person
or legal entity without your consent.
k. “Transfer” by developer - Section 16(B) A transfer includes voluntarily, involuntarily,
defined directly or indirectly, assigning, selling,
conveying, pledging, sub-franchising or
otherwise transferring any of the rights created
by the Development Agreement or any
ownership interest in you.
l. Franchisor approval of transfer Section 16(C) We must approve all transfers, but we will not
by developer unreasonable withhold our approval if you meet
our conditions.
m. Conditions for franchisor Section 16(C) Our conditions for approving a transfer include:
approval of transfer all of you and your affiliates’ money obligations
must be satisfied; you and your affiliates must
not be in material default of the Development
Agreement or any Franchise Agreement; you
must execute a general release in our favor; the
transferee must meet our then-current criteria for
Developers; at our option, transferee must (a)
execute our then-current form of development
agreement to govern the balance of your
Development Schedule, or (b) enter into a form
of assignment and assumption whereby they
assume all liabilities under the Development
Agreement; you must our then-current Transfer
Fee (or appropriate administrative fee); you
and/or transferee must pay all referral fees or
commissions that may be due to any franchise
broker, sales agent, or any other third party.
n. Franchisor’s right of first refusal Section 16(E) Except in certain circumstances (death/disability
SECTION IN
DEVELOPMENT
OTHER
AGREEMENTS
to acquire developer’s business or transfer from individual franchisee to business
entity), you must provide us with a period of 30
days to match any third-party offer to purchase
any ownership interest in the Development
Agreement. If we do not exercise this right, then
you will have 60 days to effectuate the transfer
to the third party that made the offer on those
exact terms – if the transfer does not occur or the
proposed terms of the offer change in any way,
then we will have another 30 days to exercise our
right of first refusal.
o. Franchisor’s option to purchase Not Applicable Not Applicable
developer’s business
p. Death or disability of developer Section 16(F) You will have a period of 90 days to find a
suitable legal representative that we approve to
continue the operation of your Franchised
Business, provided that person completes our
training program and executes either a personal
guaranty or a new Development Agreement.
During this 90-day period, we may step in and

operate the Franchised Business on your behalf
and pay ourselves a reasonable amount to
reimburse our costs associated with this
operation on your behalf. We are not under any
obligation to step in and operate your business
during this period.
q. Non-competition covenants Section 11(B)(1) Neither you, your principals, guarantors, owners
during the term of the franchise or key employees, nor any immediate family
member of you, your principals, guarantors,
owners or key employees, may: (i) own, operate,
or otherwise be involved with, Competing
Business (as defined in the Development
Agreement); (ii) employ or seek to employ any
employees of us, our affiliates or any other
System franchisee/developer or induce such
persons to leave their employment; or (iii) divert,
or attempt to divert, any prospective customer to
a Competing Business.
r. Non-competition covenants after Section 11(B)(2) For a period of two (2) years after the
the franchise is terminated or termination/expiration/transfer of your
expires Development Agreement, neither you, your
principals, guarantors, owners, nor any
immediate family member of you, your
principals, guarantors, owners, may own, operate
SECTION IN
DEVELOPMENT
OTHER
AGREEMENTS
or otherwise be involved with any business that
competes with us and is involved in the licensing
or franchising, or establishing of joint ventures
for the operation, of Competing Businesses.
Section 11(B)(3) For a period of two (2) years after the

termination/expiration/transfer of your Franchise
Agreement, neither you, your principals,
guarantors, owners, nor any immediate family
member of you, your principals, guarantors,
owners, may own, operate or otherwise be
involved with and Competing Business: (i)
within the Development Area; (ii) within a 40-
mile radius of your Development Area or any
other designated territory or designated area
licensed by us to a Studio as of the date of
expiration/termination of the Development
Agreement through the date you attempt to
engage in any competitive activity prohibited by
this Section.
During this two-year period, these parties are

also prohibited from: (i) soliciting business from
customers of your former Studios; (ii) contacting
any of our suppliers/vendors for a competitive
business purpose; or (iii) subject to and as
permitted by applicable law, soliciting any
employees of us, our affiliates or any other
System franchisee or developer to discontinue
their employment.
s. Modification of the Development Section 23(F) Your Development Agreement may not be
Agreement modified, except by a writing signed by both
parties.
t. Integration/ merger/clause Section 23(G) Only the terms of the Development Agreement
(and ancillary agreements) and this Disclosure
Document are binding (subject to state law). Any
representations or promises outside of the
Disclosure Document and this Agreement may
not be enforceable. Nothing in this Agreement or
any related agreement is intended to disclaim the
representations made in this Disclosure
Document.
u. Dispute resolution by arbitration Sections 22(A) – (C) You must first submit all dispute and
or mediation controversies arising under the Development
Agreement to our management and make every
SECTION IN
DEVELOPMENT
OTHER
AGREEMENTS
effort to resolve the dispute internally.
At our option, all claims or disputes arising out

of the Development Agreement must be
submitted to non-binding mediation, which will
take place at our then-current headquarters. If the
matter is mediated, the parties will split the
mediator’s fees and bear all of their other
respective costs of the mediation.
Except for our right to seek injunctive relief in

any court of competent jurisdiction and as
otherwise described above, any claim arising out
of or relating to the Development Agreement or
the relationship of the parties, and any
controversy regarding the establishment of the
fair market value of assets of the Studio will be
resolved in binding arbitration before a single
arbitrator in Orange County, California (subject
to applicable state law).
v. Choice of forum Section 22(A) Any action that is not subject to arbitration must
be brought in state or federal court in Orange
County, California (subject to applicable state
law).
w. Choice of law Section 21(A) The Development Agreement is governed by the
laws of the state of California without reference
to this state’s conflict of laws principles (subject
to state law), except that: (i) any disputes or
actions involving any non-competition
covenants set forth in any agreement with us,
including the interpretation and enforcement
thereof, must be governed by the law of the state
where the Studio is located; (ii) any franchise-
specific or franchise-applicable laws of
California, including those related to pre-sale
disclosure and the franchise relationship
generally, will not apply to this Agreement or
franchise awarded hereunder unless the
awarding of said franchise specifically falls
within the scope of such California laws,
regulations or statutes without reference to and
independent of any reference to this choice of
law provision. (subject to state law)
Applicable state law may require additional disclosures related to the information in this Disclosure Document.
These additional disclosures appear in Exhibit G, entitled State Specific Addenda, to this Disclosure Document.

ITEM 18
PUBLIC FIGURES
We do not currently use any public figure or personality to promote the franchise.
ITEM 19
FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC’s Franchise Rule permits a franchisor to provide information about the actual or potential financial
performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information,
and if the information is included in the disclosure document. Financial performance information that differs from
that included in Item 19 may be given only if (1) a franchisor provides the actual records of an existing outlet you
are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by
providing information about possible performance at a particular location or under particular circumstances.
BACKGROUND
In the initial Chart presented in this Item 19, we disclose the average and median monthly Gross Sales generated
over each calendar month comprising the 2020 calendar year (each, a “Calendar Month”), as well as the first two
Calendar Months of 2021 (the “Measurement Period”), by the applicable subset of franchised Studios disclosed
for each such Calendar Month, namely those franchised Studios that were open and operating for a period of 12
months as of the start of that Calendar Month (each, an “Applicable Subset”).
For each Calendar Month, we disclose the following information amongst the Applicable Subset of franchised
Studios, as reported to us by our System franchisees and our System software: (i) the average monthly Gross Sales
generated amongst that Applicable Subset in that Calendar Month (the “Average Reported”); (ii) the median Gross
Sales reported amongst that Applicable Subset (the “Median Reported”); (iii) the highest Gross Sales and lowest
Gross Sales reported amongst the Applicable Subset for that Calendar Month (the “High Reported” and “Low
Reported”, respectively); and (iv) the number of Studios in the Applicable Subset that met or exceeded the
Average Reported (the “Met or Exceeded Average”). For purposes of this Item 19, we will refer to the franchised
Studios disclosed for a given Calendar Month in Part I of this Item as the “Disclosed Studios” for that Applicable
Month.
In addition to disclosing the monthly Gross Sales information amongst the Applicable Subset of all Disclosed
Studios for each Calendar Month, this Item discloses the same Gross Sales information for each Calendar Month
amongst:
(i) the Applicable Subset of Disclosed Studios that actively provided the Approved Services via in-
Studio operations throughout the Calendar Month at issue without interruption (the “Studios with
Active In-Studio Operations”) in the second Chart; and
(ii) the remaining Disclosed Studios in that same Calendar Month’s Applicable Subset that were forced
to cease or suspend in-Studio operations for one (1) or more days during that Calendar Month (the
“Studios with Interrupted In-Studio Operations”) in the third Chart.
With regards to a given Calendar Month disclosed in the Charts below in this Item, the only Studio results that
are excluded from that Calendar Month’s Applicable Subset are those Studios that were not open for 12 or more
calendar months at the start of that Calendar Month.
Written substantiation for the financial performance representation will be made available to prospective
franchisees upon request.

The Disclosed Studios sold these amounts. Your individual results may differ. There is no assurance that
you’ll sell as much.
[THE REST OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK

THE REMAINDER OF THIS ITEM 19 IS CONTINUED ON THE FOLLOWING PAGE]

I. Average Monthly Gross Sales1 Generated Amongst the Applicable Subset of Disclosed Studios for Each Calendar Month Comprising the
Measurement Period
Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21
Average Monthly
Gross Sales Amongst
All Disclosed Studios $42,653 $48,263 $30,495 $5,858 $6,253 $14,782 $22,686 $26,351 $31,986 $32,009 $32,698 $28,329 $27,604 $32,033
Number of Studios in
Applicable Subset 16 18 21 28 32 36 41 42 46 56 64 64 71 72
Median Reported Gross
Sales $38,893 $43,674 $23,503 $1,783 $4,915 $10,156 $20,245 $26,251 $31,524 $31,556 $30,911 $27,576 $27,895 $31,706
High Reported Monthly
Gross $79,089 $99,623 $74,939 $25,764 $22,492 $43,407 $55,387 $71,706 $78,725 $85,850 $90,918 $58,145 $53,392 $63,430
Low Reported Monthly
Gross Sales $30,043 $30,881 $16,363 ($2,164) ($681) $105 $2,911 ($1,268) $6,979 $1,057 $2,076 $3,315 ($1,023) ($450)
Applicable Subset that
Met or Exceeded
Monthly Average Gross
Sales in this Calendar
Month (Units) 8 9 11 14 16 18 21 21 23 28 32 32 36 36
Met or Exceeded
Monthly Average Gross
Sales in this Calendar
Month (%) 50% 50% 52% 50% 50% 50% 51% 50% 50% 50% 50% 50% 51% 50%

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II. Average Monthly Gross Sales Generated amongst the Applicable Subset of Disclosed Studios with Active In-Studio Operations for Each
Calendar Month Comprising the Measurement Period
Average Monthly
Gross Sales
Amongst Disclosed
Franchised
Businesses with In-
Studio Operations
throughout
Calendar Month $42,653 $48,263 N/A N/A $13,716 $15,645 $24,244 $27,691 $31,986 $32,572 $32,698 $30,321 $31,006 $34,129
Applicable Subset 16 18 N/A N/A 12 34 37 40 46 55 64 58 63 64
Median Reported
Gross Sales $38,893 $43,674 N/A N/A $13,478 $11,284 $20,541 $26,420 $31,524 $31,746 $30,911 $29,624 $31,464 $33,610
High Reported
Monthly Gross $79,089 $99,623 N/A N/A $22,492 $43,407 $55,387 $71,706 $78,725 $85,850 $90,918 $58,145 $53,392 $63,430
Low Reported
Monthly Gross Sales $30,043 $30,881 N/A N/A $4,297 $1,532 $7,955 $1,568 $6,979 $15,940 $2,076 $3,315 $7,863 $7,948
Applicable Subset
that Met or Exceeded
Monthly Average
Gross Sales in this
Calendar Month
(Units) 8 9 N/A N/A 6 17 19 20 23 28 32 29 32 32
Applicable Subset
that Met or Exceeded
Monthly Average
Gross Sales in this
Calendar Month (%) 50% 50% N/A N/A 50% 50% 51% 50% 50% 51% 50% 50% 51% 50%

III. Average Monthly Gross Sales Generated amongst the Applicable Subset of Disclosed Studios with Interrupted In-Studio Operations for
Each Calendar Month Comprising the Measurement Period
Average Monthly
Gross Sales Amongst
Disclosed Franchised
Businesses Not
Providing In-Studio
Operations Over
Calendar Month N/A N/A $30,495 $5,858 $1,775 $110 $8,275 ($457) N/A $1,057 N/A $9,080 $815 $15,263
Applicable Subset N/A N/A 21 28 20 2 4 2 N/A 1 N/A 6 8 8
Median Reported
Gross Sales N/A N/A $23,503 $1,783 $77 $110 $8,882 ($457) N/A $1,057 N/A $9,386 $835 $12,396
High Reported
Monthly Gross N/A N/A $74,939 $25,764 $10,078 $114 $12,425 $355 N/A $1,057 N/A $11,529 $2,226 $27,947
Low Reported Monthly
Gross Sales N/A N/A $16,363 ($2,164) ($681) $105 $2,911 ($1,268) N/A $1,057 N/A $6,309 ($1,023) ($450)
Met or Exceeded
Monthly Average
Gross Sales in this
Calendar Month
(Units) N/A N/A 11 14 10 1 2 1 0 1 N/A 3 4 4
Met or Exceeded
Monthly Average
Gross Sales in this
Calendar Month (%) N/A N/A 52% 50% 50% 50% 50% 50% N/A 100% N/A 50% 50% 50%

Explanatory Notes to Item 19 Charts Above:
1. For each Studio that was accounted for in the Charts above, the term “Gross Sales” means the total revenue
generated by that location over the applicable measurement period noted in the Chart(s) above, including
all revenue generated from the sale and provision of any and all Approved Services at, from, or otherwise
through, that Studio location (subject to the following sentence). The term “Gross Sales” (a) excludes
sales tax, and (b) does not include any amount of revenue the Studios may have generated by providing
the Flexologist Training Program.
2. For each Calendar Month in the Measurement Period, “Average Gross Sales Reported” was calculated by
(a) taking the sum of all Gross Sales generated by the franchised Studios that completed that Operational
Month of operations, and (b) dividing that figure by the number of franchised Studios in that subset.
3. For each Operational Month, the “Median Reported” is determined by (a) taking the middle value reported
amongst the franchised Studios that were open for that Operational Month if the subset has an odd number
of Studios, or (b) taking the average of the two (2) middle reported values from those franchised Studios
if there is an even number of Studios in the applicable subset.
Notes Regarding the Disclosed Studios and Item 19 Generally
1. This Item does not contain any information related to the operating costs and exenses that are incurred
in connection with the establishment and/or operation of a Franchised Business. If you wish to better
understand these costs beyond the initial period of operations disclosed in Item 7 of this Disclosure
Document, we respectfully suggest that you contact one of our existing System franchisees and make
the kind of inquiries you (along with your business advisors) determine appropriate prior to entering
into any franchise or area development agreement with us. Operating costs and expenses vary from
business to business and will include, among other things, the royalty and other fees you are required
to pay to us and/or our Approved Supplier(s) in connection with your Franchised Business.
2. The figures provided in this Item do not account for amortorization, depreciation, interest on debt
services and/or any tax liability. We suggest you speak to you business advisors, as your determine
appropriate, regarding these financial aspects of the Franchised Business.
3. The revenues and expenses of your business will be directly affected by many factors, such as: (a)
your Designated Territory’s geographic location and population demographics; (b) advertising
effectiveness based on market saturation; (c) whether you operate the business personally or hire a
third party to serve as your Designated Manager; (d) your product and service pricing; (e) vendor
prices on materials, supplies and inventory; (f) personnel salaries and benefits (life and health
insurance, etc.); (g) insurance costs; (h) weather conditions; (i) ability to generate customers; (j)
customer loyalty; (k) employment conditions in the market; and (l) the efforts you and your personnel
put into your Franchised Business.
Other than the preceding financial performance representation, we do not make any financial performance
representations. We also do not authorize our employees or representatives to make any such representations either
orally or in writing. If you are purchasing an existing Studio, however, we may provide you with the actual records
of that outlet. If you receive any other financial performance information or projections of your future income,
you should report it to our management by contacting Lou DeFrancisco at Stretch Lab Franchise, LLC, 17877
Von Karman Avenue, Suite 100, Irvine, CA 92614 or via telephone at (949) 326-9765.

ITEM 20
OUTLETS AND FRANCHISEE INFORMATION
TABLE 1
SYSTEMWIDE OUTLET SUMMARY
FOR YEARS 2018 TO 2020
OUTLETS AT THE OUTLETS AT THE

OUTLET TYPE YEAR NET CHANGE
START OF THE YEAR END OF THE YEAR
2018 0 5 +5
FRANCHISED 2019 5 64 +59
2020 64 99 +35
2018 3 4 +1
COMPANY-OWNED 2019 4 0 -4
2020 0 0 0
2018 3 9 +6
TOTAL OUTLETS 2019 9 64 +55
2020 64 99 +35
TABLE 2
TRANSFER OF OUTLETS FROM FRANCHISEES TO NEW OWNERS
(OTHER THAN FRANCHISOR)
FOR THE YEARS 2018 TO 2020
STATE YEAR NUMBER OF TRANSFERS

2018 0
CA 2019 2
2020 1
2018 0
IL 2019 0
2020 1
2018 0
MN 2019 0
2020 2
2018 0
TOTAL OUTLETS 2019 2
2020 4

TABLE 3
STATUS OF SINGLE UNIT FRANCHISE OUTLETS
CEASED
OUTLETS REACQUIRED OUTLETS
OUTLETS TERMI- NON- OPERATIONS-
STATE YEAR AT START BY AT END OF
OPENED NATIONS RENEWALS OTHER
OF YEAR FRANCHISOR THE YEAR
REASONS
2018 0 0 0 0 0 0 0
AZ 2019 0 4 0 0 0 0 4
2020 4 0 0 0 0 0 4
2018 0 2 0 0 0 0 2
CA 2019 2 15 0 0 0 0 17
2020 17 11 0 0 0 0 28
2018 0 0 0 0 0 0 0
CT 2019 0 3 0 0 0 0 3
2020 3 0 0 0 0 0 3
2018 0 0 0 0 0 0 0
CO 2019 0 4 0 0 0 0 4
2020 4 0 0 0 0 0 4
2018 0 0 0 0 0 0 0
FL 2019 0 2 0 0 0 0 2
2020 2 5 0 0 0 0 7
2018 0 0 0 0 0 0 0
GA 2019 0 2 0 0 0 0 2
2020 2 0 0 0 0 0 2
2018 0 1 0 0 0 0 1
ID 2019 1 1 0 0 0 0 2
2020 2 1 0 0 0 0 3
2018 0 1 0 0 0 0 1
IL 2019 1 1 0 0 0 0 2
2020 2 4 0 0 0 0 6
2018 0 0 0 0 0 0 0
KY 2019 0 1 0 0 0 0 1
2020 1 0 0 0 0 0 1
2018 0 0 0 0 0 0 0
MA 2019 0 1 0 0 0 0 1
2020 1 1 0 0 0 0 2
2018 0 0 0 0 0 0 0
MN 2019 0 2 0 0 0 0 2
2020 2 2 0 0 0 0 4
2018 0 0 0 0 0 0 0
NC
2019 0 2 0 0 0 0 2

CEASED
OUTLETS REACQUIRED OUTLETS
OUTLETS TERMI- NON- OPERATIONS-
STATE YEAR AT START BY AT END OF
OPENED NATIONS RENEWALS OTHER
OF YEAR FRANCHISOR THE YEAR
REASONS
2020 2 2 0 0 0 0 4
2018 0 1 0 0 0 0 1
NJ 2019 1 1 0 0 0 0 2
2020 2 1 0 0 0 0 3
2018 0 0 0 0 0 0 0
NY 2019 0 4 0 0 0 0 4
2020 4 0 0 0 0 0 4
2018 0 0 0 0 0 0 0
OH 2019 0 0 0 0 0 0 0
2020 0 2 0 0 0 0 2
2018 0 0 0 0 0 0 0
OR 2019 0 4 0 0 0 0 4
2020 4 0 0 0 0 0 4
2018 0 0 0 0 0 0 0
PA 2019 0 0 0 0 0 0 0
2020 0 1 0 0 0 0 1
2018 0 0 0 0 0 0 0
SC 2019 0 1 0 0 0 0 1
2020 1 0 0 0 0 0 1
2018 0 0 0 0 0 0 0
TX 2019 0 9 0 0 0 0 9
2020 9 4 0 0 0 0 13
2018 0 0 0 0 0 0 0
UT 2019 0 2 0 0 0 0 2
2020 2 0 0 0 0 0 2
2018 0 0 0 0 0 0 0
WA 2019 0 0 0 0 0 0 0
2020 0 1 0 0 0 0 1
2018 0 5 0 0 0 0 5
TOTAL 2019 5 59 0 0 0 0 64
2020 64 35 0 0 0 0 99

TABLE 4
STATUS OF COMPANY-OWNED OUTLETS
STATE YEAR OUTLETS OUTLETS OUTLETS OUTLETS OUTLETS OUTLETS AT

AT OPENED REACQUIRED CLOSED SOLD TO END OF THE
START FROM FRANCHISEE YEAR
OF YEAR FRANCHISEE
CA 2018 3 2 0 0 1 4
2019 4 0 0 0 4 0
2020 0 0 0 0 0 0
TOTAL 2018 3 2 0 0 1 4
2019 4 0 0 0 4 0
2020 0 0 0 0 0 0
TABLE 5
PROJECTED OPENINGS AS OF DECEMBER 31, 2020
UNIT FRANCHISE
PROJECTED NEW PROJECTED NEW
AGREEMENTS
FRANCHISED COMPANY-OWNED
STATE SIGNED BUT
OUTLETS IN THE OUTLETS IN THE
OUTLETS NOT
NEXT FISCAL YEAR NEXT FISCAL YEAR
OPENED
AZ 5 4 0
CA 8 6 0
CO 1 1 0
CT 1 1 0
DC 1 1 0
FL 1 1 0
GA 1 1 0
IL 3 2 0
IN 1 1 0
IA 1 1 0
LA 1 1 0
MA 1 1 0
MT 1 1 0
NM 1 1 0
OH 1 1 0
PA 1 1 0
TX 8 6 0
WA 1 1 0
TOTAL 38 27 0
A list of the names, addresses and telephone numbers of our current franchisees as of the Issuance Date of this
Disclosure Document, as well as a list of the names, addresses and telephone numbers of our franchisees who
have had a franchise terminated, canceled, not renewed or otherwise voluntarily or involuntarily ceased to do
business under the franchise agreement during the most recently completed fiscal year or who have not
communicated with us within 10 weeks of the issuance date of this franchise disclosure document is attached as
Exhibit I. As we just commenced offering franchises as of the Issues Date, we do not currently have any franchisee
or former franchisee information to disclose. If you buy this franchise, your contact information may be disclosed
to other buyers when you leave the franchise system.
In the last three fiscal years, we have required franchisees to enter into confidentiality agreements that restrict
their ability to speak openly about their experience with our franchise system.
There are no trademark-specific franchisee organizations associated with the franchise system being offered in
this Disclosure Document.
If you buy the franchise offered in this disclosure document, your contact information may be disclosed to other
buyers when you leave the franchise system.
ITEM 21
FINANCIAL STATEMENTS
Exhibit C contains our audited financial statements for our fiscal years ending December 31, 2020,
December 31, 2019, and December 31, 2018. Our fiscal year end is December 31.
ITEM 22
CONTRACTS
The following agreements are attached to this Disclosure Document:
Exhibit A Franchise Agreement and Exhibits

Exhibit 1 Authorized Location Addendum
Exhibit 2 Electronic Funds Transfer Agreement
Exhibit 3 Electronic Debit Authorization
Exhibit 4 Guarantee
Exhibit 5 Addendum to Lease
Exhibit D Statement of Prospective Franchisee
Exhibit F Form of General Release
Exhibit G State Specific Addenda
Exhibit I Development Agreement and Exhibits
ITEM 23
RECEIPTS
Exhibit K to this Franchise Disclosure Document contains a detachable document, in duplicate,

acknowledging receipt of this Franchise Disclosure Document by a prospective franchisee. You should sign both
copies of the Receipt. You should retain one signed copy for your records and return the other signed copy to our
President at the following address: Louis DeFrancisco at Stretch Lab Franchise, LLC, 17877 Von Karman Avenue,
Suite 100, Irvine, CA 92614, and at (949) 326-9765.

Exhibit A
To Franchise Disclosure Document
FRANCHISE AGREEMENT AND RELATED EXHIBITS

2021 Franchise Disclosure Document - Exhibits
FRANCHISE AGREEMENT AND RELATED EXHIBITS
© 2021 Stretch Lab Franchise, LLC

2021 Franchise Agreement
TABLE OF CONTENTS
ARTICLE PAGE
1. GRANT OF FRANCHISE; LOCATION............................................................................................. 2

2. ACCEPTANCE BY FRANCHISEE ..................................................................................................... 3
3. TERM AND RENEWAL ......................................................................................................................... 4
4. TRADEMARK STANDARDS ................................................................................................................ 5
5. FEES .............................................................................................................................................................. 7
6. SITE SELECTION AND TRAINING REQUIREMENTS; FRANCHISOR SERVICES ................ 9
7. FACILITY STANDARDS, LEASE AND CONSTRUCTION ...................................................... 12
8. STUDIO IMAGE AND OPERATING STANDARDS .................................................................... 15
9. ADVERTISING AND MARKETING ................................................................................................ 19
10. FINANCIAL REPORTS, AUDITS, COMPUTER SYSTEM AND INSURANCE
REQUIREMENTS ................................................................................................................................... 21
11. RELATIONSHIP OF THE PARTIES; INDEMNIFICATION ................................................... 24
12. CONFIDENTIAL INFORMATION ................................................................................................... 24
13. COVENANTS NOT TO COMPETE .................................................................................................. 26
14. TRANSFER OF INTEREST ................................................................................................................. 27
15. DEFAULT AND TERMINATION OF AGREEMENT ................................................................. 29
16. RESOLUTION OF DISPUTES ............................................................................................................ 33
17. MISCELLANEOUS PROVISIONS .................................................................................................... 37
18. ACKNOWLEDGMENTS ...................................................................................................................... 39
19. ENTIRE AGREEMENT ........................................................................................................................ 40
EXHIBITS
EXHIBIT 1 AUTHORIZED LOCATION ADDENDUM

EXHIBIT 2 ELECTRONIC FUNDS TRANSFER AGREEMENT
EXHIBIT 3 ELECTRONIC DEBIT AUTHORIZATION
EXHIBIT 4 GUARANTEE, INDEMNIFICATION AND ACKNOWLEDGEMENT
EXHIBIT 5 ADDENDUM TO LEASE
© 2021 Stretch Lab Franchise, LLC

STRETCH LAB
FRANCHISE AGREEMENT
In a number of places in this Franchise Agreement, you are asked to initial certain items to show that
they have been fully discussed with you, and read, understood and agreed to by you. Initialing those
areas does not lessen the importance of other areas or mean they are not fully enforceable.
This Stretch Lab Franchise Agreement (this “Agreement”) is entered into as of the ____ day of
______________________, 20___ between Stretch Lab Franchise, LLC, a Delaware limited liability
company, doing business as “Stretch Lab” ("Franchisor") and
_________________________________________, or his/her/their assignee, if a partnership, corporation
or limited liability company is later formed (“Franchisee”), upon the following terms, conditions, covenants
and agreements:
RECITALS
A. Franchisor, by and through its affiliates/principals, owns, has developed and administers a
system and franchise opportunity, including various fitness and exercise techniques and methods, trade
secrets, copyrights, confidential and proprietary information and other intellectual property rights
(collectively, the “System”) for the establishment and operation of stretch fitness studios (each, a “Stretch
Lab Studio”) identified by the “Stretch Lab” trade name and/or other trademarks and service marks that
Franchisor designates now or in the future to be licensed hereunder as part of the System (collectively, the
“Marks”).
B. The System includes the Marks and trade secrets, proprietary methods and information and
procedures for the establishment and operation of Stretch Lab Studios, including, without limitation,
confidential manuals (collectively, the “Manual”), training methods, fitness equipment, furniture and
fixtures, marketing, advertising and sales promotions, cost controls, accounting and reporting procedures,
personnel management, distinctive interior design and display procedures, and color scheme and décor
(collectively, the “Trade Dress”).
C. Franchisor grants to qualified persons who are willing to undertake the required
investment and effort, a franchise to own and operate a Stretch Lab Studio utilizing the System and Marks
to offer and provide: (i) an array of stretching classes and related therapeutic services that Franchisor
authorizes (collectively, the “Approved Services”), which may include providing the proprietary
“flexologist” training program associated with the System (the “Flexologist Training Program”) if approved
by Franchisor and subject to the terms of this Agreement; and (ii) certain merchandise and other products
Franchisor authorizes for sale in conjunction with the Approved Services and Studio operations
(collectively, the “Approved Products”).
D. Franchisee desires to obtain a franchise to use the System and Marks in the development
and operation of a Stretch Lab Studio at the location specified in this Agreement (the “Studio”).
E. Franchisee has independently investigated the business contemplated by this Agreement,

and recognizes that the nature of the business may change over time, that an investment in a Stretch Lab
Studio involves business risks, and that the venture’s success depends primarily upon Franchisee’s business
abilities and efforts.
NOW, THEREFORE, in consideration of the foregoing, the fees and other sums payable by
Franchisee and of the mutual covenants contained in this Agreement, the parties agree as follows:
©2021 Stretch Lab Franchise, LLC A-1

1. GRANT OF FRANCHISE; LOCATION
1.1 Grant. You agree at all times faithfully, honestly and diligently to perform your obligations under
this Agreement and to use your best efforts to promote Stretch Lab and your Studio. Accordingly,
Franchisor grants to Franchisee the non-exclusive right and license to:
A. Establish and operate a single Stretch Lab Studio utilizing only the System and the Stretch
Lab Marks, at a single location that has been authorized by Franchisor (the “Authorized Location”), in
accordance with the provisions and for the term specified in this Agreement;
B. Use only the Marks of Franchisor under the terms of this Agreement to identify and
promote the foregoing Studio governed by this Agreement; and
C. Use the proprietary System methods and know-how, as set forth periodically in
Franchisor’s operations manual and other manuals (collectively, the “Manual” or “Manuals”), training
programs, or that are otherwise communicated to Franchisee.
1.2 Site Approval Process. Franchisor will assist Franchisee in connection with site selection by: (i)
providing Franchisee with its then-current site selection criteria, to the extent such criteria has been reduced
to writing; and (ii) providing Franchisee with access to a local real estate broker that is familiar with
Franchisor’s confidential site evaluation criteria, to the extent Franchisor has established relationships with
such brokers in or around the Designated Market Area (as defined in Section 1.3 below). Franchisor will
use commercially reasonable efforts to approve or reject a proposal for an Authorized Location within 30
days of the date Franchisor receives all reasonably-requested information regarding the proposed site.
Franchisor’s approval of the proposed site shall be deemed to be a binding addendum to this Agreement
upon Franchisor and Franchisee’s execution of Exhibit 1, which is attached hereto and incorporated herein
by reference, and which will set forth the Authorized Location.
A. Franchisor agrees not to unreasonably withhold approval of a site that meets its then-
current site criteria. Franchisee acknowledges that Franchisor’s approval of a proposed site is permission
only and not an assurance or guaranty to Franchisee of the availability, suitability or success of a location,
and cannot create a liability for Franchisor. While Franchisor will provide site selection assistance as
specified in Section 6.1 herein, Franchisee alone is ultimately responsible for selecting and developing an
acceptable location for the Studio. Franchisee agrees to hold Franchisor harmless with respect to the
selection of the Authorized Location by Franchisee.
B. Franchisee must (i) obtain lawful possession of an Authorized Location by lease, purchase
or other method, and (ii) open the Studio to the public for regular, continuous business, within six (6)
months of the date that Franchisor accepts this Agreement. The opening date may be extended an additional
three (3) months in certain instances pursuant to Section 2.2(D) below. Franchisor has the right to terminate
this Agreement if Franchisee fails to select a site for the Studio that meets Franchisor’s approval within the
time period allotted above.
1.3 Authorized Location & Designated Territory. If the Authorized Location has not been identified
at the time this Agreement is signed, Franchisee must identify a site approved by Franchisor within the
following geographic area: _______________________________________________________________
___________________________________________________________________ (“Designated Market
Area”). Once the Authorized Location for the Studio has been secured by Franchisee, Franchisee agrees to
enter into the form of Authorized Location Addendum attached hereto as Exhibit 1 detailing the Authorized
Location. Franchisor agrees that, so long as Franchisee is in good standing, neither it nor its affiliates will

operate or establish, or authorize another Stretch Lab franchisee to operate or establish, a Studio using the
Stretch Lab System or Marks from a physical location within a certain geographical area surrounding the
Authorized Location (“Designated Territory”). The Designated Territory, if any, will be defined in Exhibit
1, hereto. Franchisor will have the right to modify the boundaries of the Designated Territory in the event
(a) Franchisee relocates the Franchised Business, or (b) at the time of any requested renewal or proposed
assignment of the franchise, the population of the Designated Territory is over 50,000, with said
modifications designed to afford Franchisee with a territory that contains a population that is similar to that
contained within the original territory at the time this Agreement is signed.
1.4 Rights Reserved to Franchisor. Notwithstanding anything contained in this Agreement,

Franchisor and its affiliate(s)/parent(s) hereby reserve the exclusive right to: (i) open and operate, and
license third parties the right to open or operate, other Studios utilizing the Marks and System outside the
Designated Territory; (ii) market, offer and sell products and services similar to those offered by the
franchised business and other Studios (such as private label products that Franchisor may develop and the
Flexologist Training Program) through alternate channels of distribution, including without limitation, via
the Internet and other e-commerce channels, catalog sales, direct mail or wholesale, at any location; (iii)
acquire, or be acquired by, or merge with, any company, including a company operating or licensing one
or more businesses offering products or services similar to those offered by a Studio located within or
outside Franchisee’s Designated Territory, and subsequently operate (or license a third party the right to
operate) these locations regardless of location; (iv) open and operate, or license third parties the right to
open or operate, businesses that offer products and services similar to the Franchised Business under marks
other than the Marks at any location; and (v) use, and license others the right to use, the Marks and System
to engage in any other activity not expressly prohibited by this Agreement.
I have read Article 1, understand it, and agree to comply

with each of its Sections.
Your Initials: __________ / __________
2. ACCEPTANCE BY FRANCHISEE
2.1 Acceptance by Franchisee. Franchisee accepts this Agreement and the license granted herein and
agrees to develop and operate the Studio on the terms and conditions specified herein. Franchisee agrees
to follow the System requirements in the operation of its Studio, including, without limitation, its facilities,
staff, advertising, operations, and all other aspects of Franchisor’s business and the System now in effect
and changed periodically. Franchisee (or, if Franchisee is an entity, one of its operating principals) and its
proposed Designated Manager (as defined in Section 8.6 of this Agreement) must attend and complete the
appropriate initial training to Franchisor’s satisfaction, as set forth in Section 6.3 of this Agreement.
2.2 Conditions. The rights being licensed herein are subject, without limitation, to the following
conditions:
A. Franchisee’s business and the Studio shall be identified only by those Marks approved in
writing by Franchisor with at least one exterior sign as designated by Franchisor.
B. Concurrently, with the signing of this Agreement, Franchisee must execute a personal
guaranty in the form attached hereto as Exhibit 4 (“Personal Guaranty”). In the event Franchisee is a legal
entity, all owners, shareholders, partners, joint venturers, and any other person who directly or indirectly
owns a 10% or greater interest in Franchisee entity (each, an “Owner”) must execute the Personal Guaranty.
Any person or entity that at any time after the date of this Agreement becomes an Owner, pursuant to
Section 14 or otherwise, shall, as a condition of becoming an Owner, execute Franchisor’s then-current

form of Personal Guaranty. Failure to comply with this Section or any misrepresentation by Franchisee as
to the parties that are Owners under this Section constitutes a material violation of this Agreement.
C. Franchisee shall submit the lease for the Studio to Franchisor for its written consent before
Franchisee executes the lease for the Authorized Location. The lease must contain the provisions outlined
in Section 7.2 and Exhibit 5 (“Lease Addendum”).
D. Franchisee agrees that it shall open the Studio for regular, continuous business no later than
six (6) months after this Agreement is signed by Franchisor. If, through no fault of Franchisee, the Studio
has not opened after six (6) months, Franchisor may agree in writing to provide Franchisee with an
additional three (3) months to open its Studio if Franchisee (a) has already secured an approved premises
for its Studio, and (b) is otherwise making diligent and continuous efforts to buildout and otherwise prepare
its Franchised Business for opening throughout the six (6) month period following the execution of this
Agreement. Franchisor may, among other things, require Franchisee to pay a fee amounting to $2,500 as a
pre-condition to granting or affording any given extension under this Section.
E. Franchisee agrees at all times to comply with the Manual, standards, operating systems,
and other aspects of the System (collectively, the “System Standards”) prescribed by Franchisor, which are
subject to change at Franchisor’s discretion.

Your Initials: __________ / __________
3. TERM AND RENEWAL
3.1 Term. The term of this Agreement shall be for a period of ten (10) years beginning on the date
this Agreement is accepted by Franchisor, unless sooner terminated under Section 15. The conditions to
obtain a renewal Stretch Lab franchise agreement are those stated below in Section 3.2.
3.2 Renewal. Unless terminated at an earlier date, upon the expiration of the initial term, Franchisee
shall have the right to renew this Agreement for two (2) consecutive additional five (5) year terms, subject
to satisfaction of each of the following conditions:
A. Prior to each such renewal, Franchisee shall execute Franchisor’s standard form of
franchise agreement being offered at the time of each such renewal. The provisions of each such renewal
franchise agreement may differ from and shall supersede this Agreement in all respects, including, without
limitation, changes in royalty and advertising fees, except that Franchisee shall pay the renewal fee specified
in Section 3.2(F), instead of the initial franchise fee. Franchisee’s failure or refusal to execute and return
Franchisor’s then-current standard form Franchise Agreement to Franchisor within thirty (30) days after
receipt by Franchisee shall constitute Franchisee’s election not to renew;
B. Franchisee shall demonstrate that it has the right to remain in possession of the Authorized
Location for the duration of the renewal term, or that it has been able to secure and develop an alternative
site acceptable to Franchisor;
C. In consideration of each such renewal of the franchise, Franchisee shall execute a general
release in the form and substance satisfactory to Franchisor, releasing any and all claims against Franchisor
and its affiliates, officers, directors, employees and agents;

D. Franchisee shall have completed or made arrangements to make, at Franchisee’s expense,
such renovation and modernization of the Studio, including the interior and exterior of the building,
grounds, leasehold improvements, signs, furnishings, fixtures, equipment, surveillance cameras, and decor
as Franchisor reasonably requires so the Studio conforms with the then-current standards and image of
Franchisor;
E. Franchisee, during the term of this Agreement, shall have substantially complied with all
of the provisions of this Agreement and all other agreements with Franchisor, and shall be in compliance
with the Manual and with Franchisor’s policies, standards and specifications on the date of the notice of
renewal and at the expiration of the initial term;
F. Franchisee shall pay to Franchisor a renewal fee equal to $10,000 for a successor franchise;
and
G. Franchisee shall have given Franchisor written notice of renewal no less than 90 days or
more than 180 days before expiration of the initial term.
3.3 Franchisor’s Refusal to Renew Franchise. Franchisor may refuse to renew the franchise if
Franchisee is in default under this Agreement, or any other agreement with Franchisor or an affiliate of
Franchisor, or if Franchisee fails to satisfy any of the foregoing conditions. Subject to the above, Franchisor
will not unreasonably deny renewal of a Franchise.
3.4 Notice of Expiration Required by Law. If applicable law requires that Franchisor give a longer
period of notice to Franchisee than herein provided prior to the expiration of the initial term or any
additional term, Franchisor will give such additional required notice. If Franchisor does not give such
required additional notice, this Agreement shall remain in effect on a month-to-month basis until Franchisee
has received such required notice.

Your Initials: __________ / __________
4. TRADEMARK STANDARDS
4.1 Name and Ownership. Franchisee acknowledges the validity of the Mark “Stretch Lab” and all
other Marks that now or in the future are or will be part of the System and agrees and recognizes that the
Marks are the sole and exclusive property of Franchisor and/or the affiliates of Franchisor. Franchisee
further acknowledges that Franchisee’s right to use the Marks is derived solely from this Agreement and is
limited to the conduct of a Studio pursuant to and in compliance with this Agreement and all applicable
standards, specifications and operating procedures prescribed by Franchisor from time to time. Any
unauthorized use of the Marks by Franchisee shall be a breach of this Agreement and an infringement of
the rights of Franchisor and its affiliates. Franchisee’s use of the Marks inures to the benefit of Franchisor,
which owns all goodwill now and hereafter associated with the Marks. Franchisee agrees not to contest
ownership or registration of the Marks. Franchisor (and/or its affiliates) owns all right, title and interest in
and to the Marks, and Franchisee has and acquires hereby only the qualified license granted in this
Agreement. Franchisor agrees to indemnify Franchisee from any claims, costs or fees associated with any
third-party infringement claim arising out of Franchisee’s authorized use of the Marks in connection with
Studio operations as set forth herein and in the Manuals, subject to the requirement that Franchisor be

immediately notified of any third party challenge to Franchisee’s authorized use of any Mark under this
Agreement, and that Franchisor have the right to control any related litigation.
4.2 Use.
A. Franchisee shall not use any Mark as part of any corporate or business name with
any prefix, suffix or other modifying words, terms, designs or symbols, or in any modified form. Franchisee
shall display and use the Marks only in the manner and form prescribed or authorized by Franchisor and
shall conduct no other business than that prescribed by Franchisor. Franchisee shall not use any other mark,
name, commercial symbol or logotype in connection with the operation of the Studio and shall not market
any product relating to the Studio without Franchisor’s written consent, and if such consent is granted, such
product must be marketed in a manner acceptable to Franchisor. Franchisor may also permit Franchisee to
use from time to time other trademarks, service marks, trade names and commercial symbols as may be
designated by Franchisor in writing.
B. Franchisee agrees to give such notices of trademark and service mark registrations
and copyrights as Franchisor specifies and to obtain such fictitious or assumed name registrations as may
be required under applicable law.
C. Franchisee is prohibited from using the Marks in advertising, promotion or

otherwise, without the appropriate “©” or “®” (copyright and registration marks) or the designations “ TM”
or “SM” (trademark and service mark), where applicable.
4.3 Litigation. Franchisee agrees to notify Franchisor immediately in writing if it becomes aware that
any person who is not a licensee of Franchisor is using or infringing upon any of the Marks. Franchisee
may not communicate with any person other than Franchisor and its counsel in connection with any such
use or infringement. Franchisor will have discretion to determine what steps, if any, are to be taken in any
instance of unauthorized use or infringement of any of its Marks and will have complete control of any
litigation or settlement in connection with any claim of an infringement or unfair competition or
unauthorized use with respect to the Marks. Franchisee will execute any and all instruments and documents
and will assist and cooperate with any suit or other action undertaken by Franchisor with respect to such
unauthorized use or infringement such as by giving testimony or furnishing documents or other evidence.
Franchisor will be responsible for legal expenses incurred by Franchisor in connection with any litigation
or other legal proceeding involving such third party. Franchisor shall not be liable for any legal expenses
of Franchisee, unless (a) pre-approved in writing by Franchisor in its discretion, and (b) the action proceeds
or arises out of Franchisees authorized use of the Marks hereunder.
4.4 Modification, Discontinuance or Substitution. Franchisor reserves the right, if necessary in

Franchisor’s sole judgment, to change the principal Mark(s) of the System on a national or regional basis,
and upon reasonable notice, Franchisee shall at its expense adopt a new principal Mark(s) designated by
Franchisor to identify the Studio. Franchisor shall have no liability or obligation whatsoever with respect
to Franchisee’s change of any Mark.
4.5 Franchisor’s Revenues. Franchisor and its affiliates reserve the right to receive fees or other
consideration in connection with sales promotion and advertising programs associated with the Marks or
from System vendors.

Your Initials: __________ / __________

5. FEES
5.1 Initial Franchise Fee. Franchisee agrees to pay Franchisor an initial franchise fee in the sum of
Sixty Thousand Dollars ($60,000) for a single Studio upon execution of this Agreement (the “Initial
Franchise Fee”) in the form of a cashier’s check or bank wire. The Initial Franchise Fee shall be fully
earned by Franchisor upon payment and is not refundable under any circumstance.
5.2 Royalty Fee. Beginning on the day the Studio starts generating revenue from its business
operations, and continuing during the term of this Agreement, Franchisee agrees to pay Franchisor, weekly,
without setoff, credit or deduction of any nature, a royalty fee equal to seven percent (7%) of the Gross
Sales (as that term is defined in Section 5.3, below) generated by the Studio over the immediately preceding
week (the “Royalty” or “Royalty Fee”).
5.3 Gross Sales. Gross Sales means the total revenue generated by the Studio, including all revenue
generated from the sale and provision of any and all gift cards and other approved products and services at
or through the Studio and all proceeds from any business interruption insurance related to the non-operation
of the Studio, whether such revenues are evidenced by cash, check, credit, charge, account, barter or
exchange. “Gross Sales” does not include (a) any sales tax and equivalent taxes that are collected by
Franchisee for or on behalf of any governmental taxing authority and paid thereto, (b) the value of any
allowance issued or granted to any client of the Studio that is credited in good faith by Franchisee in full or
partial satisfaction of the price of the approved products or services offered in connection with the Studio,
or (c) the remuneration that Franchisee is entitled to receive in connection with any authorized Flexologist
Training Programs that are provided to clients pursuant to Section 8(D)(2) of this Agreement.
5.4 Pre-Sales and Soft Opening Retail Inventory Kit; Fitness Equipment and Other FFE
Package; Required Software.
A. Prior to opening the Studio governed by this Agreement, Franchisee must acquire: (i) an
initial package of furniture, fixtures and equipment that is designed to provide Franchisee with certain items
needed in connection with outfitting, equipping and otherwise building out of the Studio (the “Fitness
Equipment and Other FFE Package”) via a lease-to-own or comparable program with one (1) of
Franchisor’s then-current Approved Suppliers and pay any initial deposit and other amounts due under the
contract with that Approved Supplier prior to opening and as otherwise necessary to comply with the
agreement and ultimately own title to said Package components; and (ii) an opening inventory comprised
of certain branded and other inventory that may be resold at the Studio (the “Pre-Sales and Soft Opening
Retail Inventory Kit”). Over the term of this Agreement, Franchisee will be responsible for (a) maintaining
and/or replacing the items comprising the Fitness Equipment and Other FFE Package, and (b) maintaining
certain levels of inventory with respect to those items comprising the Proprietary Pre-Sale and Soft Opening
Retail Inventory Kit, as set forth more fully in this Agreement.
B. Franchisee further agrees to install at its expense and use the membership accounting, cost
control, point of sale (“POS”) and inventory control systems through the supplier Franchisor designates.
The designated, or approved, supplier(s) for these services will be updated in the Manuals as changes are
made. Over the term of this Agreement, Franchisee will also be required to pay Franchisor’s then-current
designated provider for the software program(s) that Franchisor prescribes for use in connection with the
Studio and the POS (each, a “Software Fee”), with the parties agreeing and acknowledging that such
Software Fees may be modified upon reasonable written notice to Franchisee.
5.5 Fund Contribution. Franchisor has established a brand development fund to promote, market and
otherwise develop the System, Marks and Franchisor’s brand generally (the “Fund”). Franchisee is required
to contribute two percent (2%) of the Gross Sales of its Studio to this Fund (the “Fund Contribution”).

Franchisee’s contribution obligations hereunder will commence once the Studio commences operations.
The Fund Contribution will typically be paid in the same manner and at the same interval that the Royalty
Fee is collected based on the Gross Sales of the Studio over the immediately preceding reporting period.
5.6 Technology Fee. Franchisee must pay Franchisor the System’s then-current technology fee (the
“Technology Fee”) as consideration for certain technology-related services that Franchisor may determine
to pay for all or some portion of as part of the System, which may include: (a) website development and
hosting, (b) establishing a System-wide intranet or other type of website portal for the System (a “Website
Portal”) of any kind, (c) proprietary or customized software licensed by Franchisor or its affiliates to assist
with the day-to-day operations of the Studio, and/or (d) any other technology that Franchisor determines
appropriate, in its discretion, for use in connection with Franchisee’s Franchised Business and determines
to provide as part of the Technology Fee. Franchisor may modify the Technology Fee upon thirty (30) days’
written notice to Franchisee.
5.7 Training-Related Fees. As described more fully in this Agreement, Franchisee and certain of its
personnel will: (i) be required to attend and complete certain initial training before the Studio can open for
operations, as well as certain ongoing training, as described more fully in Section 6 of this Agreement; and
(ii) have the right to request that Franchisor provide certain kinds of training or on-site assistance, subject
to the availability of Franchisor’s training personnel. While certain initial and ongoing training will be
provided by Franchisor without charging any kind of tuition or training fee, Franchisee (or its personnel)
will be responsible for ensuring Franchisor receives its then-current tuition or training fee, as applicable, in
connection with any Flexologist Training Program or other training that Franchisor provides hereunder that
involves such a fee.
5.8 Other Amounts Due in Connection with Franchised Business. Franchisee will also be
responsible for timely payment of any other required fees or amounts necessary to purchase ongoing
marketing materials, inventory, supplies, software and/or other items from Franchisor, its affiliates or other
third-party supplier as described in this Agreement.
5.9 Electronic Transfer; Right to Modify Collection Interval.
A. The Royalty Fee, Fund Contribution and any other fees owed to Franchisor or its affiliates,
will be automatically debited from Franchisee’s point-of-sale operating account administered by the
designated supplier of point-of-sale services on a weekly basis throughout the Term, unless Franchisor
provides reasonable written notice that Franchisor is modifying the collection interval (e.g., notifying
Franchisee that Franchisor will be collecting Royalty Fee, Fund Contribution and other recurring amounts
due on a monthly rather than weekly basis, with such monthly fees based on the Gross Sales of the Studio
over the preceding calendar month).
B. All amounts due to Franchisor for the purchase of products, services or otherwise are due
upon receipt of an invoice from Franchisor. Any payment or report not actually received by Franchisor on
or before the due date is overdue.
C. Franchisee agrees to complete and execute an “Electronic Funds Transfer Agreement”

(attached as Exhibit 2 to this Agreement) and any other form, including, without limitation, an “Electronic
Debit Authorization” (attached as Exhibit 3 to this Agreement) for the purpose of authorizing an electronic
debit, and to submit any information required by Franchisor for such authorization.
D. Franchisee is required to use only the POS system provided by the designated supplier and
will pay the designated provider directly for all fees associated with the use of the designated provider’s
software. Franchisee is not allowed to use an unapproved external terminal to process transactions.

5.10 Interest and Late Charges. Amounts due to Franchisor (except interest on unpaid amounts due)
not paid when due shall bear interest from the date due until paid at the lesser of one and one-half percent
(1.5%) per month, or the highest rate of interest allowed by law. Franchisor may also recover its reasonable
attorneys’ fees, costs and other expenses incurred in collecting amounts owed by Franchisee.

Your Initials: __________ / __________
6. SITE SELECTION AND TRAINING REQUIREMENTS; FRANCHISOR SERVICES
6.1 Site Selection and Lease Negotiations. Although Franchisor will provide the site selection
assistance described in Section 1.2 of this Agreement, Franchisee is solely responsible for locating,
obtaining and evaluating the suitability and prospects of the Studio location, for the review and negotiation
of its lease, and for hiring an attorney or other advisor to review and help negotiate the lease. The Authorized
Location must meet Franchisor’s then-current System standards and specifications, as set forth in the
Manuals or otherwise in writing by Franchisor. Franchisor reserves the right to charge a reasonable fee for
performing any Franchisee-requested on-site evaluation to cover incurred expenses, including, but not
limited to, travel, lodging, meals and wages. Franchisor agrees not to unreasonably withhold approval of a
site that meets its site criteria.
6.2 Unit Development. Franchisor shall consult and advise Franchisee on the proper display of the
Marks, layout and design, procurement of stretching benches, as well as fitness and other equipment (such
as foam rollers, ab mats, blocks, electric massage tools, pillows, straps, exercise balls, etc.), furniture,
fixtures, surveillance cameras with audio, initial inventories, recruiting personnel, and managing
construction or remodeling of the Studio. After Franchisee has executed a lease for the Authorized
Location, Franchisor shall deliver to Franchisee specifications and standards for building, equipment,
furnishings, fixtures, surveillance cameras with audio, layout, design and signs relating to the Authorized
Location and shall provide reasonable consultation in connection with the development of the Studio.
Franchisee’s architect must make any layout, design and specifications provided by Franchisor site-specific.
Franchisee agrees to make no changes, alterations or modifications whatsoever to the selected layout and
design without obtaining prior written consent from Franchisor.
6.3 Training Requirements and Remedies. Franchisee agrees and acknowledges that the following
training obligations and requirements must be strictly complied with and adhered to at all times during the
Term:
A. Initial Training Requirements. Prior to opening the Studio, Franchisee must ensure that: (i)
Franchisee (or, if an entity, its Operating Principal) completes the appropriate model of Franchisor’s initial
training program that is designed for the owner and operator of the Studio (the “Owner/Operator Module”);
(ii) any and all initial instructors that Franchisee wishes to have provide the Approved Services at the Studio
successfully complete the Flexologist Training Program and related testing, described more fully below, as
required for such instructors to become a “Flexologist” that is authorized to provide the stretching classes and
certain other Approved Services at the Studio (teach, an “Authorized Flexologist”); and (iii) if Franchisee has
engaged a Designated Manager as described more fully in Section 8.6 of this Agreement, such Designated
Manager has completed the module of Franchisor’s initial training program designed for this kind of manager
(the “Designated Manager Module”).

1. Owner and Designated Manager Training. The Owner/Operator Module and
Designated Manager Module will typically be provided at one (1) of Franchisor’s corporate training locations
located in California, and Franchisee will be responsible for all costs and expenses associated with the
attending these modules. Franchisor will provide each of the foregoing modules to one (1) person tuition-free,
provided the two (2) individuals attend at the same time prior to the opening of the Studio and subject to the
schedules and availability of its training staff. Otherwise, Franchisor reserves the right to charge its then-
current training fee (“Training Fee”) to any other individuals that wish to attend these modules.
2. Flexologist Training Program for Initial and Subsequent Instructors. In order to

provide the Approved Services at the Studio, an instructor must complete the Flexologist Training Program
and related testing to become an Authorized Flexologist. The Flexologist Training Program will typically be
provided (a) on-site at a Studio that is owned by another franchisee (a “Franchisee Studio”), or (b) one (1) of
our affiliates (a “Corporate Studio”). In the event an instructor completes the Flexologist Training Program at
a Franchisee Studio, then Franchisor reserves the right to have one (1) of its master trainers (each, a “Master
Trainer”) review the instructor’s testing results before approving that individual to serve as an Authorized
Flexologist and provide Approved Services from the Studio. Franchisee, or the instructor at issue, will be
required to (a) pay the then-current fee associated with providing the Flexologist Training Program (the “FTP
Tuition Fee”) for each instructor that attends the same, and (b) cover the related costs and expenses associated
with attending and completing the Flexologist Training Program at a Studio that is authorized to provide the
Flexologist Training Program (as described more fully in Section 8.4(D) of this Agreement). Franchisor
recommends that at least one (1) of the initial instructors at the Studio attend the Flexologist Training Program
around the same time that the Owner/Operator Module is completed by Franchisee. Any and all individuals
that wish to attend the Flexologist Training Program must execute a prescribed form of agreement wherein
that individual agrees to: (i) not disclose or use the confidential or proprietary portions of the Flexologist
Training Program for any competitive purpose during and after that individual’s employment with Franchisee;
and (ii) not to solicit existing or prospective customers of the Franchisee’s Studio during their employ or
engagement with Franchisee and for a period of two (2) years thereafter.
3. Remote Instruction. Franchisor has the right to provide, and require that Franchisee
or other required trainee participate in and complete, portions of the training described in this Section that are
provided remotely via the Internet or similar learning management system that permits the Franchisor to
determine whether Franchisee and/or other required trainee is actively participating in the webinar or other
instruction at issue.
4. Remedies for Non-Compliance. If any of the individuals described in this Section

fail to successfully complete the applicable training required by this Section before the time Franchisee is
required to open the Studio hereunder, Franchisor may terminate this Agreement upon written notice to
Franchisee. In the event Franchisee permits (a) anyone other than an Authorized Flexologist to provide the
Approved Services from the Studio, or (b) the Studio to be open and operating without an Authorized
Flexologist on-site at the Studio, Franchisor may default Franchisee as set forth in Section 15.1 of this
Agreement. Franchisor, as part of its right to inspect and audit the operations of the Franchised Business on
an ongoing basis, may require that Franchisee demonstrate that all required personnel have participated in and
successfully completed the Flexologist Training Program. If Franchisee fails to comply, Franchisor reserves
the right to charge Franchisee its then-current penalty fee (“Penalty Fee”) for each day that Franchisee permits
anyone other than an Authorized Flexologist to provide any Approved Services or related instruction in
connection with the Studio.
B. Discretionary On-Site Assistance. Around the time the Studio is opening, Franchisor may
send one (1) or more representatives to the Studio to (i) provide assistance and recommendations regarding
the opening and initial operations of the Studio, and/or (ii) provide additional or refresher training
associated with the Owner/Operator Module and/or the Flexologist Training Program, all as Franchisor

determines appropriate in its discretion (collectively, the “Discretionary On-Site Assistance”). In the event
Franchisor notifies Franchisee that it will be providing the Discretionary On-Site Assistance, such
assistance typically lasts one (1) to two (2) days and Franchisee must ensure that Franchisee (or its
Operating Principal), all management personnel and Authorized Flexologists are in attendance at the Studio
during those days. In the event this assistance is provided, Franchisee may be required by Franchisor to
cover all costs/expenses that Franchisor incurs in connection with sending its support personnel to provide
this on-site assistance at Franchisee’s Studio.
C. Ongoing/Refresher Training. Franchisor may provide, and require that Franchisee, as well
as any of its management personnel attend, up to five (5) days of additional training each year at a training
facility that Franchisor designates (without charging Franchisee any Training Fee as described in Section 5.7
of this Agreement). Franchisee may also request that Franchisor provide certain additional or refresher training
to Franchisee, either at one (1) of Franchisor’s designated training facilities or on-site at Franchisee’s Studio,
but Franchisor reserves the right to charge Franchisee its then-current Training Fee based in connection with
any training that Franchisor provides at Franchisee’s request. Such training will be provided subject to the
availability and schedules of Franchisor’s training personnel.
D. Remedial Training. If Franchisor determines that Franchisee is operating the Franchised

Business in a manner that is not consistent with the terms of this Agreement or the Manuals, or if Franchisee
is otherwise in material default of this Agreement, Franchisor may also require that Franchisee, its
Designated Manager (if applicable) and/or certain Authorized Flexologists of the Studio attend and
complete up to five (5) additional days of training at (a) Franchisor’s designated training facility, (b) the
Studio, or (c) other location Franchisor designates, that is designed to address the default or other non-
compliance issue (the “Remedial Training”). Franchisor may require Franchisee and its designated trainees
to pay Franchisor its then-current Training Fee in connection with attending Remedial Training.
E. Master Training. In the event Franchisee wishes to have one (1) of the Studio’s Authorized
Flexologists provide the Flexologist Training Program at the Studio to instructors as part of the Approved
Services, as described more fully in Section 8.4(D) of this Agreement, then that Authorized Flexologist
must attend and complete an additional training course provided by Franchisor’s master trainer designed to
provide the Authorized Flexologist with additional instruction necessary for that individual to become a
master trainer that can provide the Flexologist Training Program (each, a “Master Trainer”). Franchisor is
not obligated to approve any Franchisee request to send a given Authorized Flexologist to master training,
and Franchisee must: (i) not be in default of any provision of this Agreement as a condition to Franchisor’s
approval of such a request; and (ii) pay Franchisor its then-current Training Fee in connection with any
master training provided under this Section.
F. Costs and Expenses. Franchisee will be responsible for the costs and expenses associated
with Franchisee and its personnel attending and completing all of the training described in this Section,
including without limitation, any costs related to travel, lodging, meals and (if appropriate)
wages/compensation for personnel.
6.4 Operations Manual. Franchisor will grant Franchisee online access to an electronic version of
the Manual during the term of this Agreement. The Manual is anticipated to codify existing mandatory and
suggested specifications, standards and operating procedures currently prescribed by Franchisor.
Franchisee acknowledges that Franchisor may from time to time revise its Systems as well as the contents
of the Manual, and Franchisee agrees to comply with each new or changed standard and specification upon
notice from Franchisor. The Manual shall remain the sole property of Franchisor and shall be kept
confidential by Franchisee both during the Term of this Agreement and subsequent to the termination,
expiration, or non-renewal of this Agreement. If Franchisee, intentionally or otherwise through its gross
negligence, compromises the secure access to the online version of the Manual (or any hard copy of the

Manual), including, but not limited to, allowing unauthorized users access to the Manual and its confidential
contents, Franchisee will be required to pay Franchisor liquidated damages in the amount of $10,000, to
compensate Franchisor for the breach and related damage to the System.
6.5 Continuing Services. Franchisor shall provide such continuing advisory assistance and
information to Franchisee in the development and operation of the Studio as Franchisor deems advisable in
its discretion. Such assistance may be provided, in Franchisor’s discretion, by Franchisor’s directives,
System bulletins, meetings and seminars, telephone, computer, e-mail, fax, personal visits, newsletters or
manuals.
6.6 Approved Lists. Franchisor shall provide and from time to time, add to, alter or delete, at
Franchisor’s discretion, lists of specifications, approved distributors and suppliers, approved services and
products, including, but not limited to, stretch fitness equipment and gear, and other materials and supplies
used in the operation of the Studio. Franchisor, or an affiliate of Franchisor, may be a designated or
approved supplier of certain equipment, gear, merchandise, apparel and supplies.
6.7 Pricing. Stretch Lab has developed an image that is based in part on affordable prices for stretch
services offered by the System. To promote a consistent consumer experience, and to maximize the value
of the products and services Studios offer, Franchisor may require fixed minimum prices for any products
or services offered by the System and Franchisee. Franchisee is obligated to use the pricing required by
Franchisor, unless Franchisor consents to changes in local pricing offered by Franchisee in order to (i) allow
Franchisee to respond to unique, local, marketing conditions, competition, or expenses; or (ii) comply with
changes or interpretations in state or federal anti-trust laws. Consistent with state or federal law, Franchisor
reserves the right to change or eliminate its pricing program in the future, or to move from a required to
recommended pricing structure.
6.8 Fund. As detailed in Section 9.1 of this Agreement, the Fund is maintained and administered by
Franchisor with, if established, the assistance of the marketing fund committee (“MFC”) to meet the costs
of conducting regional and national advertising and promotional activities (including the cost of advertising
campaigns, test marketing, marketing surveys, public relations activities and marketing materials) which
Franchisor and the MFC deem beneficial to the System.
6.9 Grand Opening Advertising Assistance. Franchisor will, as it deems appropriate in its discretion,
consult and advise Franchisee on the advertising, marketing and promotion for the grand opening of the
Studio.

Your Initials: __________ / _________
7. FACILITY STANDARDS, LEASE AND CONSTRUCTION
7.1 Facility Specifications. Franchisee’s Studio shall meet the following conditions:
The Studio shall be laid out, designed, constructed or improved, equipped and furnished in accordance
with Franchisor’s standards and specifications. Equipment, furnishings, fixtures, surveillance cameras with
audio, I and signs for the Studio shall be purchased from suppliers approved or designated by Franchisor.
Franchisee may remodel or alter the Studio, or change its equipment, furniture or fixtures, only with
Franchisor’s consent. Franchisee must obtain necessary permits, licenses and other legal or architectural

requirements. The Studio shall contain or display only signage that has been specifically approved or
designed by Franchisor.
The Studio and all fitness equipment shall be maintained in accordance with standards and
specifications established by Franchisor or prescribed after inspection of the Studio. Franchisee shall
promptly repair or replace defective or obsolete equipment, signage, fixtures or any other item of the interior
or exterior that is in need of repair, refurbishing or redecorating in accordance with such standards
established (and updated from time to time) by Franchisor or as may be required by Franchisee’s lease.
Franchisee recognizes that the System will evolve. The fitness industry must respond to new fads, new
forms of exercise, new equipment and new training techniques. The Stretch Lab System must change to
meet customer demands. Franchisee further understands that stretch equipment and other equipment wears
out, breaks down, or becomes obsolete. Consequently, from time to time, as Franchisor requires, Franchisee
must modernize and/or replace items of the Trade Dress or Studio equipment as may be necessary for the
Studio to conform to the standards for new Studios. Further, Franchisee will be required to thoroughly
modernize or remodel the Studio when requested by Franchisor, but no more than once every 5 years. This
may include replacing stretch/fitness equipment and gear, and other updates and improvements. Franchisee
acknowledges that this obligation could result in Franchisee making extensive structural changes to, and
significantly remodeling and renovating the Studio, and Franchisee agrees to incur, without limitation, any
capital expenditures required in order to comply with this obligation and Franchisor’s requirements. Within
60 days after receiving written notice from Franchisor, Franchisee shall have plans prepared according to
the standards and specifications that Franchisor prescribes and Franchisee must submit those plans to
Franchisor for its approval. Franchisee agrees to complete all work according to the plans that Franchisor
approves within the time period that Franchisor reasonably specifies and in accordance with this
Agreement. Franchisor, or its Affiliate, will hold themselves, and the Studios they operate (if any) to the
same high standard, and same frequency for replacement and renovation as is expected of Franchisee.
The Studio shall contain signage prominently identifying Franchisee by name as an independently
owned and operated franchisee of Franchisor.
The Studio must have a surveillance camera with audio purchased from a designated approved supplier
installed at the Studio. The camera(s) must be web accessible. The camera(s) will be used by Franchisee
to monitor teacher performance, quality assurance and safety. Franchisor has an absolute right to also
review and monitor the camera(s) for the same purposes as Franchisee, and to ensure compliance with the
Stretch Lab System. Franchisee is responsible for ensuring customer consent and for any failure to obtain
such consent. Franchisee agrees to indemnify Franchisor for any breaches of privacy from Franchisee’s
use of any surveillance camera.
7.2 Lease. Franchisee is solely responsible for purchasing or leasing a suitable site for the Studio.
Franchisee must utilize one of the designated retail real estate attorneys listed in the Manual, or otherwise
communicated to Franchisee, to review and negotiate the lease for the Studio. Franchisee must submit the
lease for the Studio to Franchisor for its written consent before Franchisee executes the lease for the
Authorized Location. Franchisor will not withhold consent arbitrarily; however, any lease must contain
substantially the following provisions: (1) “The leased premises will be used only for the operation of a
Stretch Lab Franchise;” (2) “The employees of Franchisor will have the right to enter the leased premises
to make any modifications necessary to protect the System and proprietary marks thereof;” (3) “Lessee
agrees that Lessor may, upon request of Franchisor disclose to said Franchisor all reports, information or
data in Lessor’s possession with respect to sales made in, upon or from the leased premises;” and (4) a
conditional assignment clause to be contained in a lease rider in a form approved by Franchisor, which shall
provide that Franchisor (or its designee) may, upon termination, expiration, non-renewal or proposed
assignment of this Agreement, at Franchisor’s sole option, take an assignment of Franchisee’s interest

thereunder, without the consent of the Lessor or property owner, without liability for accrued obligations,
payment of additional consideration or increase in rent, and at any time thereafter, reassign the lease to a
new franchisee. Franchisor’s execution of this Agreement is conditioned upon the above-referenced lease
addendum in the form attached hereto, as Exhibit 5 (“Lease Addendum”), which shall be signed by
Franchisee and attached and made part of the lease for the Studio. Franchisee acknowledges that it has
been advised to have any lease reviewed by Franchisee’s own legal counsel.
7.3 Unit Development. Franchisee agrees that after obtaining possession of the Authorized Location,
Franchisee will promptly, at Franchisee’s sole expense:
7.3.1 Obtain any standard plans and/or specifications from Franchisor;
7.3.2 Employ a qualified licensed architect, as required by state or local codes, to prepare
all drawings, designs, plans and specifications for the Studio, and submit same to Franchisor for
review and approval prior to commencing construction;
7.3.3 Complete the construction or remodeling of the Studio in full and strict compliance
with plans and specifications approved by Franchisor, and in compliance with all applicable
ordinances, building codes and permit requirements;
7.3.4 Purchase or lease, in accordance with Franchisor’s standards and specifications,

all fitness equipment, fixtures, inventory, supplies and signs required for the Studio;
7.3.5 Hire and train the initial operating personnel according to Franchisor’s standards
and specifications; and
7.3.6 Complete development of and have the Studio open for business not later than six
(6) months after the date that Franchisor accepts this Agreement.
7.4 Franchisee’s Responsibility. Although Franchisor may provide Franchisee with various standard
or sample plans and specifications with respect to constructing and equipping the Studio, it is Franchisee’s
sole responsibility to construct and equip the Studio in compliance with all applicable federal, state and
local laws and regulations, including, without limitation, all building codes, fire and safety codes,
environmental laws, Occupational Safety and Health Administration laws, health laws, sanitation laws,
Americans with Disabilities Act, and all other requirements that may be prescribed by any federal, state or
local governmental agency. . Franchisee is also solely responsible for ensuring that Franchisee and the
Franchised Business comply with all music licensing laws in connection with any music that Franchisee
and/or any staff at the Studio determines to play at the Studio. Franchisee further acknowledges and agrees
that Franchisee is, and will continue to be at all times during the Term, solely responsible for all employment
decisions and to comply with all state, federal, and local hiring laws and functions of the Studio, including
without limitation, those related to hiring, firing, training, wage and hour requirements, compensation,
promotion, record-keeping, supervision, and discipline of employees, paid or unpaid, full or part-time.

with each of its sub-sections.
Your Initials: __________ / __________

8. STUDIO IMAGE AND OPERATING STANDARDS
8.1 Compliance. Franchisee acknowledges and agrees that every detail regarding the appearance and
operation of the Studio is important to Franchisor, Franchisee, the System and other Stretch Lab franchisees
in order to maintain high and uniform operating standards, to increase demand for the classes sold by all
franchisees, and to protect Franchisor’s reputation and goodwill, and, accordingly, Franchisee agrees to
comply strictly at all times with the requirements of this Agreement and Franchisor’s standards and
specifications (whether contained in the Manual or any other written or oral communication to Franchisee
by Franchisor) relating to the appearance or operation of the Studio. Franchisee acknowledges that other
Studios may operate under different forms of agreement with Franchisor, and that the rights and obligations
of the parties to other agreements may differ from those hereunder.
8.2 Franchisor’s Right to Inspection. To determine whether Franchisee is complying with this
Agreement and Franchisor’s standards and specifications, Franchisor reserves the right to supervise,
determine and approve the standards of appearance, quality and service pertinent to the Studio including,
without limitation, the right at any reasonable time and without prior notice to Franchisee to: (1) inspect
and examine the business premises, fitness equipment, facilities and operation of the Studio in person or by
web accessible surveillance cameras with audio, which are required to be installed in each classroom in the
Studio; (2) interview Franchisee and Franchisee’s employees, including any independent contractors; (3)
interview Franchisee’s members and customers, suppliers and any other person with whom Franchisee does
business; (4) confer with members and staff of government agencies with authority over Franchisee about
matters relevant to the Studio; and (5) use “mystery shoppers,” who may pose as customers and evaluate
Franchisee and Franchisee’s operations.
8.3 Personnel. Franchisee agrees to employ in the operation of the Studio only persons of high
character and ability who maintain and exhibit traits of enthusiasm, cleanliness, neatness, friendliness,
honesty and loyalty, it being recognized by Franchisee that such persons are necessary in order to promote
and maintain customer satisfaction and the goodwill of the System. Franchisee agrees to staff the Studio at
all times with a sufficient number of qualified, competent personnel who have been trained in accordance
with Franchisor’s standards. Franchisee shall be considered the employer of all employees and independent
contractors of the Studio. It is the sole responsibility of Franchisee to hire, discipline, discharge and
establish wages, hours, benefits, employment policies and other terms and conditions of employment for
its employees and independent contractors. Franchisee is responsible for obtaining its own independent
legal advice regarding the employment of employees and independent contractors, and complying with any
and all applicable laws pertaining thereto. Franchisor shall have no responsibility for the terms and
conditions of Franchisee’s relationship with Franchisee’s employees and/or independent contractors.
Franchisee shall engage in no discriminatory employment practices and shall in every way comply with all
applicable laws, rules and regulations of federal, state and local governmental agencies, including, without
limitation, all wage-hour, civil rights, immigration, employee safety and related employment and payroll
related laws. Franchisee shall make all necessary filings with, and pay all taxes and fees due to, the Internal
Revenue Service and all other federal, state and local governmental agencies or entities to which filings and
payments are required. Franchisee acknowledges that nothing in this Section or Agreement shall, or may
be construed to, create any type of employer or joint employer relationship between (a) Franchisee or any
of Franchisee’s personnel, and (b) Franchisor in any matter.
8.4 Products and Services to be Offered for Sale.
A. Approved Services and Approved Products Generally. Franchisee acknowledges that the
presentation of a uniform image to the public and the offering of uniform services and products is an
essential element of a successful franchise system. In order to insure consistency, quality and uniformity
throughout the System, Franchisee agrees (1) to sell or offer for sale only the services or products that have

been expressly approved for sale by Franchisor; (2) to sell or offer for sale all services and products required
by Franchisor; (3) not to deviate from Franchisor’s standards and specifications; and (4) to discontinue
selling and offering for sale any services or products that Franchisor may, in its discretion, disapprove at
any time. Franchisor shall supply Franchisee with a list of suppliers from which Franchisee is required to
purchase fitness equipment, stretch items, products or services for the Studio. Franchisor may change this
list from time to time, and upon notification to Franchisee, Franchisee shall only purchase fitness
equipment, stretch items, products or services from approved suppliers as specified on the changed list.
Franchisor, or an affiliate of Franchisor, may be a designated or approved supplier of certain equipment,
gear, merchandise, apparel and supplies. Franchisee agrees to keep the Studio and fitness equipment in
clean condition, with all equipment well-maintained and operational, and be able at all times during
business hours to provide members with all services and products specified by Franchisor.
B. Required Use of Approved Suppliers. Franchisee agrees that all exercise equipment must
be purchased exclusively from approved suppliers, must be maintained according to manufacturer or
Franchisor specifications, as applicable. Franchisee acknowledges and agrees that Franchisor is (or may at
any time in future become) an approved or designated supplier for certain stretch/fitness equipment, other
equipment, products, logo items, signage and artwork, that Franchisor may derive income from the sale of
such items, and that the price charged by Franchisor may reflect a profit.
C. No Deviation or Supplement with Regards to Approved Services and/or Related

Methodology. Franchisee and any Authorized Instructors must provide all System-associated classes and
other Approved Services in strict accordance with the standards and specifications and methodologies set
forth in the Manual and in other training materials provided by Franchisor. Franchisee agrees not to add
any exercises, stretches, choreography, or positions that are not approved by Franchisor, and Franchisee
agrees not to leave out any exercises, stretches, choreography, or positions that are required by Franchisor.
D. Franchisor Approval of Master Trainer and Provision of Flexologist Training Program as

Part of the Approved Services at the Studio. The parties agree and acknowledge that Franchisee may not
offer or provide the Flexologist Training Program at the Studio or otherwise, unless and until: (i) Franchisor
approves an Authorized Flexologist to attend and complete the master training program described in Section
6.3(E) of this Agreement; (ii) Franchisee or the Authorized Flexologist at issue pays Franchisor the required
Training Fee associated with the training; that Authorized Flexologist completes the foregoing program and
is approved as a Master Trainer; and (iii) Franchisor provides written notice to that System franchisee at
issue that the Master Trainer can provide the Flexologist Training Program at one (1) or more System
Studio(s) (the “FTP Supplemental Service Conditions”). In the event the FTP Supplemental Service
Conditions are satisfied, only the Master Trainer(s) that have satisfied the conditions may provide the
Flexologist Training Program at System Studio(s), subject to the following terms:
1. Franchisee (and any other System franchisee that employs or otherwise supplies
the Master Trainer) must ensure that its Master Trainer provides the Flexologist Training Program in strict
accordance with System standards and specifications, as well as the materials that Franchisor provides for
use in connection with the provision of the Flexologist Training Program (the “FTP Materials”);
2. With regards to each client that enrolls to take the Flexologist Training Program at
the Studio, Franchisee agrees and acknowledges that: (i) Franchisor will receive the full then-current FTP
Training Fee associated with providing the Program to that client from the client directly via online
scheduling/payment or other method Franchisor designates; (ii) unless Franchisor agrees otherwise in a
separate writing, Franchisee may not accept any FTP Training Fee; and (iii) Franchisor will be entitled to
its then-current portion of the FTP Training Fee as consideration for the intellectual property and FTP
Materials associated with the Program before remitting the balance of the FTP Training Fee to the System
franchisee that employs or is otherwise supplying the Master Trainer that is providing the Program; and

3. Any revenue generated by Franchisee in connection with the provision of the
Flexologist Training Program by a Master Trainer that Franchisee employs or otherwise contracts with
directly to provide such Program will not be accounted for in the definition of “Gross Sales” of the Studio
for purposes of calculating the Royalties or Fund Contribution due to Franchisor hereunder, and will be
accounted for separate and apart from all other Gross Sales of the Studio in required financial reporting
under this Agreement.
E. Non-Approved Services, Products or Suppliers. If Franchisee proposes to offer for sale any
other products, classes or services that have not been approved by Franchisor, Franchisee shall first notify
Franchisor in writing and submit sufficient information, specifications and samples concerning such
product, classes and/or supplier and/or service for a determination by the Franchisor whether such product,
classes or supplier of service complies with the Franchisor’s specifications and standards and/or whether
such supplier meets the Franchisor’s approved supplier criteria. Franchisor shall, within ninety (90) days,
notify Franchisee in writing whether or not such proposed product, class and/or supplier or service is
approved, as determined in Franchisor’s discretion. Franchisor reserves the right to charge Franchisee
reasonable costs in connection with Franchisor’s review, evaluation and approval of alternative suppliers.
These charges may include reimbursement for travel, accommodations, meal expenses, and personnel
wages. Franchisor may from time to time prescribe procedures for the submission of requests for approved
products and/or suppliers or services and obligations that approved suppliers must assume (which may be
incorporated in a written agreement to be executed by approved suppliers). Franchisor reserves the right to
revoke its approval of a previously authorized supplier, product, class or service when Franchisor
determines in its discretion that such supplier, product, class or service is not meeting the specifications and
standards established by Franchisor. If Franchisor modifies its list of approved products, classes and/or
suppliers and/or services, Franchisee shall not, after receipt in writing of such modification, reorder any
product or utilize any supplier, product, class or service that is no longer approved.
F. Franchisor Rights. Franchisee acknowledges and agrees that Franchisor may sell products
and services to members located anywhere, even if such products and services are similar to what
Franchisor sells to Franchisee and what Franchisee offers at the Studio. Franchisor may use the internet or
alternative channels of commerce to sell Stretch Lab brand products and services. Franchisee may only
sell the products and services from the Studio’s approved location, and may only use the internet or
alternative channels of commerce to offer or sell the products and services, as permitted by Franchisor, in
order to register members for classes. Nothing in the foregoing shall prohibit Franchisee from obtaining
members over the Internet provided Franchisee’s internet presence and content comply with the
requirements of this Agreement.
G. Advertising Outside Designated Territory. Unless Franchisor agrees otherwise, Franchisee

may not actively solicit potential members or customers, or otherwise promote the Franchised Business
through any targeted advertising/marketing, outside of the Designated Territory. Nothing in this Agreement,
however, shall prohibit Franchisee from servicing members and other customers that contact Franchisee or
the Studio, regardless of where those members/customers reside or work.
H. No Unauthorized Sales of Certain Items. Unless Franchisor directs or agrees otherwise in

writing, Franchisee agrees not to sell vitamins, supplements or other nutritional products or food items,
including bottled water, at the Studio.
I. Penalty Fee. Franchisor reserves the right to charge its then-current per day Penalty Fee
for each day Franchisee offers or sells unauthorized products or services from the Studio, including in
connection with the offer or provision of the Flexologist Training Program in a manner that is not consistent
with this Agreement.

8.5 Compliance with Laws. Franchisee agrees to comply with all federal, state and local laws, rules,
and regulations and shall as soon as practicable, but in any event prior to the opening for business of the
Studio, obtain all municipal and state permits, certificates or licenses necessary to operate the Studio and
shall file and publish, if required by applicable law, a certificate of doing business (whether under a
fictitious name or otherwise). Franchisee acknowledges and agrees that it has the sole responsibility to
investigate and comply with any applicable laws in the state where the Studio is located that are specific to
the operation of a health/fitness studio. For example, some states require that health/fitness facilities have
a staff person available during all hours of operation that is certified in basic cardiopulmonary resuscitation
or other specialized medical training. Some state or local laws may also require that health/fitness facilities
have an automated external defibrillator and/or other first aid equipment on the premises. Franchisee shall
operate and maintain the Studio in strict compliance with all employment laws, building codes, fire and
safety codes, environmental laws, Occupational Safety and Health Administration laws, health and safety
laws, sanitation laws, Americans with Disabilities Act and any other requirements that may be prescribed
by any federal, state or local governmental agency. Franchisee agrees to immediately provide Franchisor
with a copy of any notice received by Franchisee from any state, local or governmental agency pertaining
to compliance with any codes or requirements, or the failure to comply with any codes or requirements, at
the Studio. Franchisee hereby certifies and represents that Franchisee, and any of its affiliates, any of its
partners, members, shareholders or other equity owners, and their respective employees, officers, directors
representatives or agents, are not acting, directly or indirectly, for or on behalf of any person, group, entity
or nation named by any Executive Order or the United States Treasury Department as a terrorist, “Specially
Designated National and Blocked Person,” or other banned or blocked person, entity, nation or transaction
pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign
Assets Control. Franchisee hereby agrees to defend, indemnify and hold harmless Franchisor from and
against any and all claims, damages, losses, risks, liabilities and expenses (including attorneys’ fees and
costs) arising from or related to any breach of the certifications set forth in this paragraph.
8.6 Operational Efforts. Franchisee may appoint a Designated Manager to assist in the direct, day-
to-day, supervision of the operations of the Studio, provided that Designated Manager successfully
completes the Designated Manager Training Program prior to commencing any management
responsibilities at the Studio. Franchisee agrees to keep Franchisor advised, in writing, of any manager and
all teachers involved in the operation of the franchised business and their contact information. Franchisee
agrees to keep the Studio open for the hours stated in the Manual and as deemed appropriate by Franchisor.
If Franchisee does not have a Designated Manager, then Franchisee (or its Operating Principal, as
applicable) must be on-site at the Studio during normal business hours to manage day to day operations.
8.7 Good Standing. Franchisee will be considered in “Good Standing” if Franchisee is not in default
of any obligation to Franchisor or any of Franchisor’s affiliates, whether arising under this Agreement or
any other agreement between Franchisee and Franchisor (or any of Franchisor’s affiliates), the Manual or
other System requirements.
8.8 Performance Standards. Franchisee and Franchisor have a shared interest in the Studio
performing at or above the System Standards. Franchisor would not have entered into this franchise
relationship if Franchisor had anticipated that Franchisee would not meet these Performance Standards.
A. System Standards. Franchisor may choose, in its sole discretion, to evaluate the Studio for
compliance with the System Standards using various methods (including, but not limited to, inspections,
field service visits, surveillance camera monitoring, member comments/surveys, and secret shopper
reports.) Franchisee must meet minimum standards for cleanliness, equipment condition, repair and
function, and customer service. Franchisee’s employees, including any independent contractors, must meet
minimum standards for courteousness and customer service.

B. Minimum Monthly Gross Revenue Quota. Unless waived by Franchisor due to unique
market conditions, Franchisee must meet a certain Minimum Monthly Gross Revenue Quota. If Franchisee
fails to achieve and maintain average monthly gross revenues of $30,000 by the 1st year anniversary of the
opening of the Studio and average monthly gross revenues of $40,000 by the end of the 2nd year anniversary
and each succeeding year thereafter, then Franchisor may institute a corrective training program and/or
require Franchisee to perform additional local marketing. If Franchisee fails to meet the Minimum Monthly
Gross Revenue Quota for 36 consecutive months at any time during the Term of this Agreement, Franchisor,
at its sole discretion, may institute a mandatory corrective training program or terminate this Agreement
upon written notice to Franchisee.
9. ADVERTISING AND MARKETING
9.1 Fund.
A. Franchisee is required to pay the appropriate Fund Contribution to Franchisor as described

in Section 5.5 of this Agreement. In the event Franchisor increases the Fund Contribution from what it is
as of the date this Agreement is signed, Franchisor will provide at least 60 days’ written notice of such
increase in the Fund Contribution.
B. The Fund is administered by Franchisor as it deems appropriate in its discretion. Franchisor

may establish a committee to serve in an advisory capacity only with respect to providing guidance and
advice on Fund-related matters (the “MFC”), but Franchisor is under no obligation to do so. In the event an
MFC is established in connection with the Fund, it will serve in an advisory capacity only, and will have
no management, control or decision-making authority in connection with the Fund. Franchisor will
determine how best to structure and administer the Fund in its discretion, and Franchisor will have the right
to dissolve any MFC it might have previously established upon 30 days’ written notice to Franchisee. The
Fund is maintained and operated by Franchisor, as it deems appropriate in its discretion, to meet the costs
of conducting regional and national advertising, promotional, marketing activities, as well as related
technology and other brand development activities, that are deemed most beneficial to the System.
C. Franchisor has complete control and discretion over how to administer the Fund and Fund
Contributions to determine the advertising, marketing and public relations programs and activities financed
by the Fund, including the creative concepts, materials and endorsements used and the geographic market,
media placement and allocation. Franchisee agrees that the Fund may be used to pay the costs of preparing
and producing associated materials and programs as Franchisor may determine, including the use of social
media; video, audio and written advertising materials employing advertising agencies; sponsorship of
sporting, charitable or similar events; administering regional, national and multi-regional advertising
programs including purchasing direct mail and other media advertising, website development/operation and
to pay Internet, Intranet, URL, (800) or similar number, and other charges, fees and/or expenses, including
employing advertising agencies to assist with marketing efforts; and supporting public relations, market
research and other advertising, promotional and marketing activities. A brief statement regarding the
availability of Stretch Lab franchises and details about the franchise offering may be included in advertising
and other items produced using the Fund.
D. Franchisor may spend in any calendar year more or less than the total Advertising
Contributions to the Fund in that year. Franchisor may cause the Fund to invest any surplus for future use
by the Fund. Franchisor may borrow from Franchisor or other lenders on behalf of the Fund to cover
deficits of the Fund.

E. Franchisor and/or any Franchisor-Related Persons/Entities can provide goods, services,
materials, etc. (including administrative services and/or “in-house advertising agency” services) and be
compensated and/or reimbursed for the same by the Fund, provided that any such compensation must be
reasonable in amount. Franchisor can arrange for goods, services, materials, etc. (including administrative
services) to be provided by independent persons/companies and all related costs, fees, etc. will be paid by
the Fund.
F. The Fund is accounted for separately from Franchisor’s other funds and Franchisor will
not use the Fund for its general operating expenses. All taxes of any kind incurred in connection with or
related to the Fund, its activities, contributions to the Fund and/or any other Fund aspect, whether imposed
on Franchisor, the Fund or any other related party, will be the sole responsibility of the Fund. Franchisor
will not be required to audit the Fund, but will provide an annual accounting of the Fund at the written
request of Franchisee that is made 120 days after the fiscal year at issue. All interest earned on monies
contributed to, or held in, the Fund will be remitted to the Fund and will be subject to the restrictions of the
relevant Franchise Agreement(s).
G. Franchisee agrees and acknowledges that the Fund Contributions are intended to maximize
general public recognition of and the acceptance of the Intellectual Property for the benefit of the System
as a whole. Notwithstanding the foregoing, Franchisor undertakes no obligation, in administering the Fund
Contributions to make expenditures for Franchisee that are equivalent or proportionate to Franchisee’s
contribution, or to insure that any particular Stretch Lab business benefits directly or pro rata from
advertising or promotion conducted with the Fund Contributions.
H. Franchisor maintains the right to terminate the collection and disbursement of the Fund
Contributions and the Fund. Upon termination, Franchisor will disburse the remaining funds for the
purposes authorized under this Agreement.
I. In the event Franchisor or any Affiliate of Franchisor owns and operates a Studio utilizing
the System, such Studio(s) will contribute to the Fund on the same basis that franchised Studios in the
System are required to contribute.
9.2 Grand Opening Advertising; Local Marketing Activities.
A. Franchisee must spend a minimum of Fifteen Thousand Dollars ($15,000) in connection

with the grand opening and initial launch marketing of the Studio around the time the Studio opens, as
reasonably directed by Franchisor (the “Grand Opening Advertising Spend”). Franchisor may also require
that Franchisee expend all or any portion of the Grand Opening Advertising Spend on initial
marketing/advertising and/or public relations materials or services that are purchased from an Approved
Supplier.
B. Franchisee is responsible for local advertising and marketing activities to attract members
to the Studio. Franchisee must expend at least $1,500 per month on approved local advertising and
marketing activities designed to promote the Studio within the Designated Territory. Upon Franchisor’s
written request, Franchisee must provide Franchisor with an accounting of all expenditures made by
Franchisee to comply with this Section, along with any invoices or other documentation to support such
expenditures.
C. Franchisee’s advertising will be in good taste and conform to ethical and legal standards
and our requirements. Franchisor may require Franchisee to submit samples of all advertising and
promotional materials (and any use of the Marks and/or other forms of commercial identification) for any
media, including the Internet, World Wide Web or otherwise. Franchisor retains the right to approve or

disapprove of such advertising, in its sole discretion. Franchisee agrees not to use any materials or programs
disapproved by Franchisor.
D. Franchisor must approve any form of co-branding, or advertising with other brands,
products or services, in writing, in advance.
9.3 Social Media Activities. As used in this Agreement, the term “Social Media” is defined as a
network of services, including, but not limited to, blogs, microblogs, and social networking sites (such as
Facebook®, LinkedIn® and MySpace®), video-sharing and photo-sharing sites (such as YouTube and
Flickr), review sites (such as Yelp® and Urbanspoon®), marketplace sites (such as eBay® and
Craigslist®), Wikis, chat rooms and virtual worlds, that allows participants to communicate online and
form communities around shared interests and experiences. While it can be a very effective tool for
building brand awareness, it can also be devastating to a brand if used improperly. Therefore, Franchisee
must strictly follow the Social Media guidelines, code of conduct, and etiquette as set forth in the Manual.
Any use of Social Media by Franchisee pertaining to the Studio must be in good taste and not linked to
controversial, unethical, immoral, illegal or inappropriate content. Franchisor reserves the right to "occupy"
any Social Media websites/pages and be the sole provider of information regarding the Studio on such
websites/pages (e.g., a system-wide Facebook page). At Franchisor’s request, Franchisee will promptly
modify or remove any online communication pertaining to the Studio that does not comply with this
Agreement or the Manual.
9.4 Franchisee Marketing Group(s) (“Co-Ops”). Franchisor may decide to form one or more
associations and/or sub-associations of Stretch Lab Studios to conduct various marketing-related activities
on a cooperative basis (a “Co-Op”). If one or more Co-Ops (local, regional and/or national) are formed
covering Franchisee’s area, then Franchisee must join and actively participate. Each Studio will be entitled
to one (1) vote, but in order to vote the Studio must be in Good Standing. Franchisee may be required to
contribute such amounts as are determined from time to time by such Co-Ops.

Your Initials: __________ / __________
10. FINANCIAL REPORTS, AUDITS, COMPUTER SYSTEM AND INSURANCE

REQUIREMENTS
10.1 Records and Reports. Franchisee shall maintain and preserve for four (4) years or such period as
may be required by law (whichever is greater) from the date of their preparation such financial information
relating to the Studio as Franchisor may periodically require, including without limitation, Franchisee’s
sales and use tax returns, register tapes and reports, sales reports, purchase records, and full, complete and
accurate books, records and accounts prepared in accordance with generally accepted accounting principles
and in the form and manner prescribed by Franchisor. Franchisee agrees that its financial records shall be
accurate and up-to-date at all times. Franchisee agrees to promptly furnish any and all financial information,
including tax records and returns, relating to the Studio to Franchisor on request.
10.2 Right to Conduct Audit or Review. Franchisor shall have the right, in its sole determination, to
require a review by such representative(s) as Franchisor shall choose, of all information pertaining to the
Studio including, without limitation financial records, books, tax returns, papers, and business management
software programs of Franchisee at any time during normal business hours without prior notice for the
purpose of accurately tracking unit and System-wide sales, sales increases or decreases, effectiveness of
advertising and promotions, and for other reasonable business purposes. Such review will take place at the

Studio or Franchisee’s head office (if different), or both, and Franchisee agrees to provide all information
pertaining to the Studio requested by Franchisor during its review. If the review is done because of a failure
by Franchisee to furnish reports, supporting records or other required information or to furnish the reports
and information on a timely basis, Franchisee shall reimburse Franchisor for all costs of the audit or review
including, without limitation, travel, lodging, wage expense and reasonable accounting and legal expense.
The foregoing remedies shall be in addition to any other remedies Franchisor may have under this
Agreement or applicable law.
10.3 Computer System and Software. Franchisee must acquire a computer for use in the operation of
the Studio. Franchisee agrees to record all of its receipts, expenses, invoices, member lists, class and
employee schedules and other business information promptly in the computer system and use the software
that Franchisor specifies or otherwise approves. Franchisor reserves the right to change the computer
system, and the accounting, business operations, customer service and other software at any time. Data,
including names, addresses, contact information, and credit card or payment information of members of the
Studio will be captured on the required software, and will become the joint property of Franchisee and
Franchisor during the Term of this Agreement. Franchisee will provide Franchisor with any passwords
necessary to access the business information for the Studio that is stored on the required software and
online. Franchisor may use such information to communicate directly to the members of the Studio, and
to provide updates, information, newsletters, and special offers to the members. Franchisee must upgrade
and maintain the computer system and software in the Studio, as required by Franchisor from time to time,
and pay any fees associated with such upgrades. Upon expiration or termination of this Agreement,
Franchisee shall have no further access or rights to the member information and Franchisor shall be the sole
owner of such information.
10.4 Insurance.
A. Prior to opening the Studio for business and throughout the entire term of this Agreement,
Franchisee will keep in force at Franchisee’s own expense and by advance payment of the premium, the
following insurance coverage filings:
(1) Workers’ Compensation and Employer’s Liability Insurance as well as such other
insurance, with statutory limits, as required by law in the jurisdiction where the franchised business is
located. Employers Liability or “Stop Gap” insurance, with limits of not less than $1,000,000 each accident;
(2) Commercial General Liability Insurance, Occurrence form, including a per

location or project aggregate, with the following coverages: owners and contractors protective liability,
broad form property damage, contractual liability, severability of interest clause; personal and advertising
injury; and products/completed operations; medical payments and fire damage liability; insuring Franchisee
and Franchisor against all claims, suits, obligations, liabilities and damages, including attorneys’ fees, based
upon or arising out of actual or alleged personal injuries or property damage resulting from or occurring in
the course of, or on or about or otherwise relating to the Franchised Business including general aggregate
coverage in the following limits:
Required Coverage Minimum Limits of Coverage

General Aggregate $5,000,000
Products/Completed Operations Aggregate $5,000,000
Personal and Advertising Injury $1,000,000
Each Occurrence $1,000,000
Participant Legal Liability $1,000,000
Professional Liability $1,000,000

Employee Benefits Liability (per employee) $1,000,000
Employee Benefits Liability (aggregate) $2,000,000
Damage to Rented Premises (per occurrence) $1,000,000
Medical Expense (any one person) $5,000
(3) “ALL RISK” or special form property coverage of no less than current
replacement cost of the Studio’s equipment, fixtures and leasehold improvements (tenant improvements)
sufficient in the amount to restore the Studio to full operations. Glass coverage no less than a limit of
$25,000 and sign coverage no less than a limit of $10,000 in addition to equipment, fixtures and leasehold
improvements;
(4) Business interruption insurance with coverage for at least twelve (12) months for
actual losses. (For purposes of this Agreement, “Gross Sales” shall include any proceeds received by
Franchisee in connection with a “business interruption” insurance claim);
(5)
Auto Liability (Hired and Non-owned autos) with a $1,000,000 Combined Single
Limit Each Accident for Bodily Injury and Property Damage, if Franchisee utilizes a vehicle in connection
with the operation of the Studio; and
(6) Employment Practices Liability with a limit no less than $1,000,000 per claim and
$1,000,000 aggregate per location. The retention may not exceed $25,000.
B. All insurance policies must be written by an insurance company licensed in the state in
which Franchisee operates its Studio. The insurance company must have at least an “A” Rating
Classification as indicated in A.M. Best’s Key Rating Guide.
C. Franchisor reserves the right, from time to time, in its discretion, to upgrade the insurance
requirements or lower the required amounts as to policy limits, deductibles, scope of coverage, or rating of
carriers in response to current industry standards, market conditions and/or landlord requirements. Within
sixty (60) days of receipt of notice from Franchisor, Franchisee agrees to revise its coverage, as specified
in any notice from Franchisor.
D. Franchisor reserves the right to designate, or require pre-approval of, the provider
of any insurance required in connection with the Studio.
E. Franchisee’s obligation to obtain and maintain insurance shall not be limited by reason of
any insurance that may be maintained by Franchisor nor relieve Franchisee of liability under the indemnity
provisions set forth in this Agreement. All policies and coverage must name Franchisor as an additional
insured, waive any subrogation rights or other rights to assert a claim back against Franchisor and shall
contain a clause requiring notice to Franchisor thirty (30) days in advance of any cancellation or material
change or cancellation to any such policy. Franchisee shall give Franchisor certificates of coverage at least
annually. Failure to obtain or the lapse of any of the required insurance coverage shall be grounds for the
immediate termination of this Agreement pursuant to Section 15.1, and Franchisee agrees that any losses,
claims or causes of action arising after the lapse of or termination of insurance coverage will be the sole
responsibility of Franchisee and that Franchisee will hold Franchisor harmless from all such losses, claims
and/or causes of action. In addition, but not to the exclusion of the foregoing remedy, if Franchisee fails to
procure or maintain the required insurance, Franchisor shall have the right and authority, but not the
obligation, to procure immediately the insurance and Franchisee shall reimburse Franchisor for the cost of
the insurance plus reasonable expenses immediately upon written notice. Franchisee is required to submit
to Franchisor a copy of a Certificate of Insurance, with Franchisor as an additional insured, showing

compliance with the foregoing requirements at least thirty (30) days before Franchisee commences
operation of the Studio. Franchisor shall have a security interest in all insurance proceeds to the extent
Franchisee has any outstanding obligations to Franchisor.

Your Initials: __________ / __________
11. RELATIONSHIP OF THE PARTIES; INDEMNIFICATION
11.1 Independent Contractor. The only relationship between Franchisor and Franchisee created by
this Agreement is that of independent contractor. The business conducted by Franchisee is completely
separate and apart from any business that may be operated by Franchisor and nothing in this Agreement
shall create a fiduciary relationship between them or constitute either party as agent, legal representative,
subsidiary, joint venturer, partner, employee, servant or fiduciary of the other party for any purpose
whatsoever. Franchisee shall hold itself out to the public as an independent contractor operating the
business pursuant to a license from Franchisor, and Franchisee agrees to take such action including
exhibiting a notice to that effect in such content, form and place as Franchisor may specify. It is further
specifically agreed that Franchisee is not an affiliate of Franchisor and that neither party shall have authority
to act for the other in any manner to create any obligations or indebtedness that would be binding upon the
other party. Neither party shall be in any way responsible for any acts and/or omissions of the other, its
agents, servants or employees and no representation to anyone will be made by either party that would
create an implied or apparent agency or other similar relationship by and between the parties.
11.2 Indemnification. Franchisee, as a material part of the consideration to be rendered to Franchisor,

agrees to indemnify, defend and hold Franchisor, as well as Franchisor’s directors, officers,
principals/owners, managers, shareholders, affiliates, subsidiaries, employees, servants, agents, successors
and assignees (collectively, the “Indemnitees”), harmless from and against any and all losses, damage,
claims, demands, liabilities and causes of actions of every kind or character and nature, as well as costs and
expenses incident thereto (including reasonable attorneys’ fees and court costs), that are brought against
any of the Indemnitees (collectively, the “Claims”) that arise out of or are otherwise related to Franchisee’s
(a) breach or attempted breach of, or misrepresentation under, this Agreement or in connection with the
offer/sale of the Studio prior to the execution of this Agreement, (b) ownership, construction, development,
management, or operation of the Studio in any manner and/or (c) gross negligence or intentional
misconduct. Notwithstanding the foregoing, at Franchisor’s option, Franchisor may choose to engage
counsel and defend against any such Claim and may require immediate reimbursement from the Franchisee
of all expenses and fees incurred in connection with such defense

Your Initials: __________ / __________
12. CONFIDENTIAL INFORMATION
12.1 Franchisor’s Confidential Information.
A. Franchisee acknowledges and agrees that all information relating to the System and to the
development and operation of the Studio, including, without limitation, the Manual, Franchisor’s training

program, members and supplier lists, or other information or know-how distinctive to a Stretch Lab
Franchise (all of the preceding information is referred to herein as the “Confidential Information”) are
considered to be proprietary and trade secrets of Franchisor. Franchisee agrees that all Confidential
Information is to be held in the strictest of confidence during and after the term of this Agreement and is
not to be divulged to anyone directly or indirectly at any time, except to Franchisee’s Studio employees,
including any independent contractors, with a need to know the information in order to operate the Studio.
Upon Franchisor’s request, Franchisee shall require the Studio’s employees and any independent
contractors to execute a nondisclosure and non-competition agreement in a form satisfactory to Franchisor.
Franchisee shall not acquire any interest in the Confidential Information other than the right to utilize it in
the Studio and agrees not to copy, duplicate, record or otherwise reproduce any Confidential Information,
in whole or in part, nor otherwise make them available to any unauthorized person, nor use them in any
other business or in any manner not specifically authorized or approved in writing by Franchisor.
Franchisee shall adopt and implement all reasonable procedures to prevent unauthorized use, duplication
or disclosure of Franchisor’s Confidential Information. If Franchisee or Franchisee’s employees or any
independent contractors learn about an unauthorized use of any trade secret or confidential materials,
Franchisee must promptly notify Franchisor. Franchisor is not obligated to take any action, but will respond
to the information as it deems appropriate. If Franchisee at any time conducts, owns, consults with, is
employed by or otherwise assists a similar or competitive business to that franchised hereunder, the doctrine
of “inevitable disclosure” will apply, and it will be presumed that Franchisee is in violation of this covenant;
and in such case, it shall be Franchisee’s burden to prove that Franchisee is not in violation of this covenant.
B. Franchisee agrees that any new concept, process or improvement in the operation or
promotion of the Studio developed by or on behalf of Franchisee that relates to or enhances the Stretch Lab
Operating System, or any aspect of Franchisor’s business, shall be the sole property of Franchisor, and
Franchisee shall promptly notify Franchisor and shall provide Franchisor with all documents and necessary
information and execute all necessary documentsto memorialize said ownership, or, if necessary,
Franchisee’s assignment of such ownership to Franchisor, without compensation. Franchisee
acknowledges that Franchisor may utilize or disclose such information to other Franchisees.
12.2 No Other Interests. Franchisee further acknowledges that Franchisor would be unable to protect
its Confidential Information against unauthorized use or disclosure and would be unable to encourage a
free exchange of ideas and information among Stretch Lab franchisees if its franchisees were permitted to
hold an interest in other fitness or S Studio businesses and otherwise to compete with Franchisor. Therefore,
during the term of this Agreement, Franchisee must comply with the competitive covenant provisions of
Article 13 herein.
12.3 Injunctive Relief. Franchisee expressly agrees that the existence of any claims it may have against
Franchisor, whether or not arising out of this Agreement, shall not constitute a defense to the enforcement
of this Article 12. Franchisee acknowledges and agrees that any failure to comply with the requirements
of this Article 12 will cause Franchisor irreparable injury for which no adequate remedy at law is available,
and Franchisee accordingly agrees that Franchisor shall be entitled to injunctive relief as specified in
Section 16.2 herein to enforce the terms of this Article 12. Franchisee shall pay all costs and expenses,
including, without limitation, reasonable attorneys’ fees, incurred by Franchisor in connection with the
enforcement of this Article 12. The foregoing remedies shall be in addition to any other remedies
Franchisor may have under this Agreement or applicable law.
Your Initials: __________ / __________

13. COVENANTS NOT TO COMPETE
13.1 Non-Competition Covenants of Franchisee.
A. During the Term of this Agreement. Neither Franchisee, its principals, owners, or
guarantors, nor any immediate family of Franchisee, its principals, owners, or guarantors (“Restricted
Parties”), may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any
other person, partnership or corporation own, maintain, engage in, be employed or serve as an officer,
director, or principal of, lend money or extend credit to, lease/sublease space to, or have any interest in or
involvement with any (a) fitness or exercise business, (b) any fitness or exercise marketing or consulting
business, (c) any business offering products of a similar nature to those of the Studio, or (d) in any business
or entity which franchises, licenses or otherwise grants to others the right to operate such aforementioned
businesses described in subparts (a)-(c) of this Section (each, a “Competing Business”). Furthermore, the
Restricted Parties shall not divert, or attempt to divert, any prospective customer to a Competing Business
in any manner.
B. After the Term of this Agreement. For two (2) years after the expiration, termination or non-
renewal (by Franchisor or by Franchisee for any reason) of this Agreement or after Franchisee has assigned
its interest in this Agreement, the Restricted Parties shall not own, maintain, engage in, be employed as an
officer, director, or principal of, lend money to, extend credit to, lease/sublease space to, or have any interest
in or involvement with, any other Competing Business: (i) at the Authorized Location; or (ii) within a ten
(10) mile radius of (a) the Authorized Location, or (b) any other Franchised Studio or Corporate Studio that
is open, under lease or otherwise under development as of the date this Agreement expires or is terminated.
13.2 Non-Solicitation Covenants.
A. During the Term of this Agreement. Franchisee agrees not to employ or seek to employ
any person employed by Franchisor or by any other franchisee of Franchisor, or otherwise directly or
indirectly induce or seek to induce such person to leave his or her employment during the term of this
Agreement, without first obtaining the consent of Franchisor or any other franchisee of Franchisor.
Instructors and sales staff may work at more than one Studio. Franchisee acknowledges that Franchisor
has the right to offer to sell or to sell a Stretch Lab franchise to any employee of Franchisee.
B. After the Term of this Agreement. For two (2) years after the expiration, termination or non-
renewal (by Franchisor or by Franchisee for any reason) of this Agreement or after Franchisee has assigned
its interest in this Agreement, the Restricted Parties shall not (i) solicit business from customers of
Franchisee’s former Studio, (ii) contact any of Franchisor’s suppliers or vendors for any competitive
business purpose, or (iii) subject and to the extent permitted by applicable law where the Studio and/or
employee at issue are located, solicit any of Franchisor’s other employees, or the employees of Franchisor’s
affiliates or any other System franchisee, to discontinue employment.
13.3 Enforcement of Covenants.
A. Franchisee expressly agrees that the existence of any claims it may have against Franchisor,
whether or not arising out of this Agreement, shall not constitute a defense to the enforcement of the
covenants in this Article 13. Franchisee acknowledges and agrees that in view of the nature of the System
and the business of Franchisor, the restrictions contained in this Article 13 are reasonable and necessary to
protect the legitimate interests of the System and Franchisor. Franchisee further acknowledges and agrees
that Franchisee’s violation of the terms of this Article 13 will cause irreparable injury to Franchisor for
which no adequate remedy at law is available, and Franchisee accordingly agrees that Franchisor shall be
entitled to preliminary and permanent injunctive relief and damages, as well as, an equitable accounting of

all earnings, profits, and other benefits arising from such violation, which remedies shall be cumulative and
in addition to any other rights or remedies to which Franchisor shall be entitled. Franchisee agrees to waive
any bond that may be required or imposed in connection with the issuance of any preliminary or provisional
relief. Franchisee shall pay all costs and expenses, including, without limitation, reasonable attorneys’ fees,
incurred by Franchisor in connection with the enforcement of this Article 13. If Franchisee violates any
restriction contained in this Article 13, and it is necessary for Franchisor to seek equitable relief, the
restrictions contained herein shall remain in effect until two (2) years after such relief is granted. If
Franchisee contests the enforcement of Article 13 and enforcement is delayed pending litigation, and if
Franchisor prevails, the period of non-competition shall be extended for an additional period equal to the
period of time that enforcement of this Article 13 is delayed.
B. Franchisee agrees that the provisions of this covenant not to compete are reasonable. If,
however, any court should find this Article 13 or any portion of this Article 13 to be unenforceable and/or
unreasonable, the court is authorized and directed to reduce the scope or duration (or both) of the
provision(s) in issue to the extent necessary to render it enforceable and/or reasonable and to enforce the
provision so revised.
C. Franchisor shall have the right, in Franchisor’s discretion, to reduce the scope of any
covenant not to compete set forth in this Agreement, or any portion thereof, without Franchisee’s consent,
effective immediately upon receipt by Franchisee of written notice thereof, and Franchisee shall comply
with any covenant as so modified.

Your Initials: __________ / __________
14. TRANSFER OF INTEREST
14.1 Franchisor’s Approval Required. All rights and interests of Franchisee arising from this
Agreement are personal to Franchisee and except as otherwise provided in this Article 14, Franchisee shall
not, without Franchisor’s prior written consent, voluntarily or involuntarily, by operation of law or
otherwise, sell, assign, transfer, pledge or encumber its interest in this Agreement, in the license granted
hereby, in the assets of the Studio, any of its rights hereunder, or in the lease for the premises at which the
Studio is located, and any purported sale, assignment, transfer, pledge or encumbrances shall be null and
void. If Franchisee is a corporation, limited liability, partnership, or an individual or group of individuals,
any assignment (or new issuance), directly or indirectly, occurring as a result of a single transaction or a
series of transactions that alters the Percentage of Ownership Interest reflected in Section 17.3 of this
Agreement must promptly be reported to Franchisor and is a “transfer” within the meaning of this Article
14.
14.2 Conditions for Approval of Transfer. Franchisor shall not unreasonably withhold its approval
of a proposed transfer, provided that the prospective transferee, in Franchisor’s reasonable judgment, is of
good moral character and reputation, has no conflicting interests, has a good credit rating and sufficient and
competent business experience, aptitude and financial resources acceptable to Franchisor’s then-current
standards for franchisees; and that the following conditions are met: (1) Franchisee pays Franchisor a
transfer fee in an amount equal to $10,000, except in certain situations where an administrative fee is
applicable as set forth in this Section; (2) Franchisee signs a general release of all claims in favor of
Franchisor and related parties in Franchisor’s prescribed form; (3) the Studio and equipment must be
upgraded, refurbished or repaired if Franchisor, in its sole discretion, decides it is necessary; (4) at
Franchisor’s option, transferee (and, if appropriate, it owners) must (a) execute Franchisor’s then-current

form of franchise agreement that will then govern the balance of the term of this Agreement, or (b) enter
into a form of assignment and consent to transfer whereby transferee (and, if appropriate, its owners) agree
to assume all of Franchisee’s obligations and covenants under this Agreement; and (5) the transferee (a)
completes (or has its Operating Principal complete) the Owner/Operator Module and has its Designated
Manager complete the Designated Manager Training Program, and (b) has at least one (1) Authorized
Flexologist prior to reopening, and/or resuming the provision of Approved Services at, the Studio. Instead
of the traditional transfer fee, Franchisor shall only charge Franchisee an administrative fee at the time of
proposing a transfer amounting to (i) $500 if Franchisee is an individual (or individuals) and Franchisee
wishes to transfer its rights hereunder to an entity that is wholly owned by such individual(s), or (ii) $1,500
if the transfer is from Franchisee hereunder to an immediate family member of Franchisee.
14.3 Permitted Transfers to a Corporation or LLC or Affiliate Company. If Franchisee is an

individual or partnership, and desires to assign and transfer its rights, assets and obligations under this
Agreement to a corporation or limited liability company that is wholly-owned by Franchisee and formed
for the convenience of ownership, it may do so without approval from Franchisor, and without payment of
a transfer fee, so long as the terms and conditions of this Agreement remain unchanged, and the Franchisee
shall own and control all of the equity and voting power of all issued and outstanding stock of the transferee
corporation or all of the equity and voting power of the limited liability company and, if Franchisee is more
than one individual, each individual shall have the same proportionate ownership interest in the corporation
or limited liability company as he or she had in Franchisee prior to the transfer.
14.4 Death or Disability of Franchisee. In the event of the death or disability of Franchisee, if an
individual, or of a stockholder of a corporate Franchisee, or of a partner of a Franchisee which is a
partnership, or a member of a Franchisee which is a limited liability company, the transfer of Franchisee’s
or the deceased stockholder’s, partner’s or member’s interest in this Agreement to his or her heirs, trust,
personal representative or conservators, as applicable, must occur within six (6) months of the death or
disability, but, shall not be deemed a transfer by Franchisee (provided that the responsible management
employees or agents of Franchisee have been satisfactorily trained at Franchisor’s Initial Training) nor
obligate Franchisee to pay any transfer fee. If Franchisor determines (i) there is no imminent transfer to a
qualified successor or (ii) there is no heir or other principal person capable of operating the Studio,
Franchisor shall have the right, but not the obligation, to immediately appoint a manager and commence
operating the Studio on behalf of Franchisee. Franchisee shall be obligated to, and shall pay to Franchisor
all reasonable costs and expenses for such management assistance, including without limitation, the
manager’s salary, room and board, travel expenses and all other related expenses of the Franchisor
appointed manager. Operation of the Studio during any such period shall be for and on behalf of Franchisee,
provided that Franchisor shall only have a duty to utilize reasonable efforts and shall not be liable to
Franchisee or its owners for any debts, loses or obligations incurred by the Studio, or to any creditor of
Franchisee for any supplies, inventory, equipment, furniture, fixtures or services purchased by the Studio
during any period in which it is managed by a Franchisor appointed manager. Franchisor may, in its sole
discretion, extend the six (6) month period of time for completing a transfer contemplated by this Section.
14.5 Relocation. Franchisee may not relocate the Studio from the Authorized Location without
Franchisor’s prior written approval, which Franchisor may provide in its sole discretion. Franchisee agrees
and acknowledges that: (i) it must pay Franchisor a $5,000 relocation fee at the time Franchisee makes any
relocation request; and (ii) Franchisor is not likely to approve any relocation request unless (a) due to
extreme circumstances that are beyond Franchisee’s control, and (b) Franchisee is in full compliance with
this Agreement.
14.6 Transfer by Franchisor. Franchisor shall have the right to transfer or assign all or any part of its
rights or obligations herein to any person or legal entity, directly or indirectly, by merger, assignment,
pledge or other means.

Your Initials: __________ / __________
15. DEFAULT AND TERMINATION OF AGREEMENT
15.1 Termination of Franchise by Franchisor. Franchisor shall have the right to terminate this
Agreement for “good cause” upon delivering notice of termination to Franchisee. For purposes of this
Agreement, “good cause” shall include, without limitation: (i) a material breach of this Agreement or any
other agreement between Franchisee and Franchisor or any of Franchisor’s affiliates, (ii) intentional,
repeated or continuous breach of any provision of this Agreement or any other agreement between
Franchisee and Franchisor or any of Franchisor’s affiliates, and (iii) the breaches (and, if applicable, failure
to cure such breaches) described below in this Section 15.
:
A. Immediate Termination. Franchisee shall be deemed to be in default and Franchisor may

terminate this Agreement and all rights granted hereunder, without affording Franchisee any opportunity to
cure the default, effective immediately upon receipt of notice by Franchisee, and such termination shall be
for good cause where the grounds for termination are:
(1) Franchisee has made any material misrepresentation or omission in applying for
the franchise or in executing or performing under this Agreement or any other agreement between
Franchisee and Franchisor or any of Franchisor’s affiliates;
(2) Franchisee becomes insolvent by reason of Franchisee’s inability to pay debts as

they become due, or makes an assignment for the benefit of creditors or makes an admission of Franchisee’s
inability to pay obligations as they become due;
(3) Franchisee files a petition in bankruptcy, or an involuntary petition in bankruptcy

is filed against Franchisee or a receiver is appointed for Franchisee’s business, or a final judgment remains
unsatisfied or of record for 30 days or longer; or if Franchisee is a corporation, limited liability company or
partnership, Franchisee is dissolved;
(4) Franchisee voluntarily or otherwise abandons the Studio. For purposes of this
Agreement, the term “abandon” means: (i) failure to actively operate the Studio for more than two (2)
business days without Franchisor’s prior written consent; or (ii) any other conduct on the part of Franchisee
or its principals that Franchisor determines indicates a desire or intent to discontinue operating the Studio
in accordance with this Agreement or the Manual;
(5) Franchisee or any of its principal officers, directors, partners or managing members
is convicted of or pleads no contest to a felony or other crime or offense that adversely affect the reputation
of the System or the goodwill associated with the Marks;
(6) Franchisee makes an unauthorized direct or indirect transfer or attempted or

purported transfer of this Agreement, or makes an unauthorized direct or indirect transfer or attempted or
purported transfer of an ownership interest in the Franchise, or fails or refuses to transfer the Franchise or
the interest in the Franchise of a deceased or disabled controlling owner thereof as required;

(7) Franchisee falsifies any financial reports or records required to be provided by
Franchisee to Franchisor under this Agreement;
(8) Franchisee’s: (i) disclosure, utilization, or duplication of any portion of the System,
the Manual or other proprietary or Confidential Information relating to the Studio that is contrary to the
provisions of this Agreement; or (ii) material misuse of the Marks in any manner not expressly authorized
by Franchisor;
(9) Franchisee violates any health or safety law, ordinance or regulation or operates
the Studio in a manner that presents a health or safety hazard to its members or to the public;
(10) Franchisee fails to obtain lawful possession of an acceptable location and to open
for business as a Stretch Lab Studio within six (6) months after this Agreement is accepted by Franchisor,
unless Franchisor agrees otherwise in writing;
(11) Franchisee defaults under the lease agreement or otherwise loses the right to
possess the premises at the location at which the Studio is located;
(12) Franchisee fails to comply with the covenants not to compete as required in Article
13 herein;
(13) Franchisee permits the offer or sale of products and services other than the
Approved Services, including the unauthorized provision of the Flexologist Training Program, at the Studio
in violation of the terms of this Agreement on two (2) or more occasions in any 24-month period, regardless
of whether Franchisee subsequently cured the prior default(s); or
(14) Franchisee, after curing a default pursuant to Section 15.1B herein, commits the
same act of default again within any twelve (12) consecutive month period whether or not such default is
cured after notice thereof is delivered to Franchisee, or if Franchisee received three (3) or more default
notices from Franchisor within any twelve (12) consecutive monthly period whether or not such defaults
were related to the same problem or were cured after notice thereof was delivered to Franchisee.
B. Termination with Notice. In addition to the provisions of Section 15.1A, if Franchisee

shall be in default under the terms of this Agreement and the default shall not be cured or remedied (to
Franchisor’s satisfaction) within thirty (30) days after receipt of written notice from Franchisor (or 10 days’
prior notice in the event of a default that is described in Subsections (6), (7) or (8) below), in addition to all
other remedies available to Franchisor at law or in equity, Franchisor may immediately terminate this
Agreement. If any such default is not cured within the specified cure period, this Agreement shall terminate
without further notice to Franchisee effective immediately upon expiration of the cure period. Franchisee
shall be in default, and each of the following shall constitute good cause for termination under this
Agreement:
(1) Failure, refusal or neglect by Franchisee to obtain Franchisor’s prior written

approval or consent any time such approval or consent is required by this Agreement;
(2) Franchisee’s failure to comply with any provision of this Agreement that does not
otherwise provide for immediate termination, or Franchisee’s bad faith in carrying out the terms of this
Agreement;
(3) Failure by Franchisee to maintain books and financial records for the Studio
suitable for proper financial audit or failure by Franchisee to permit Franchisor to carry out its rights to

conduct an inspection or audit as provided in this Agreement or failure by Franchisee to submit as required
by this Agreement all reports, records and information of the Stretch Lab franchised business;
(4) Franchisee, or if Franchisee has elected not to directly supervise “on-premises” the
day-to-day Studio operations, then Franchisee’s management employee, fails to complete, to Franchisor’s
satisfaction, the initial training program as provided in this Agreement;
(5) Franchisee fails to pay when due any amount owing to Franchisor or its affiliates
under this Agreement or any other agreement, or is unable to obtain adequate financing to cover all costs
of developing, opening and operating the Studio;
(6) Franchisee fails to pay when due any amounts owing to any person or entity in
connection with the construction, leasing, financing, operation or supply of the Studio;
(7) Franchisee closes any bank account without completing all of the following after
such closing: (i) immediately notifying Franchisor in writing, (ii) immediately establishing another bank
account, and (iii) executing and delivering to Franchisor all documents necessary for Franchisor to begin
and continue making withdrawals from such bank account by electronic funds transfer as Exhibit 2 to this
Agreement permits;
(8) Franchisee fails to maintain or suffers cancellation of any insurance coverage

required under this Agreement;
(9) Franchisee allows (a) the Approved Services to be provided by anyone other than
an Authorized Flexologist, or (b) the Flexologist Training Program to be provided by anyone other than a
Master Trainer that has been approved by Franchisor to provide that Program;
(10) Any transfer or attempted transfer by Franchisee or any partner, member or

shareholder in Franchisee of any rights or obligations under this Agreement to any third party without the
prior written consent of Franchisor;
(11) Franchisee offers in conjunction with the operation of the Studio products or
services that have not been approved by Franchisor;
(12) Franchisee fails to abide by the pertinent marketing and advertising requirements
and procedures and participate in marketing programs for the business as established by Franchisor; or
(13) Franchisee fails to comply with the Performance Standards as set forth in the
provisions of this Agreement, as prescribed by Franchisor, or in the Manual, including, but not limited to,
the Minimum Monthly Gross Revenue Quota for a period of 36 consecutive months, System Standards for
cleanliness, customer service, equipment maintenance, and any other System Standards which effect or
enhance the member experience at the Studio.
15.2 Cross-Default. If there are now, or hereafter shall be, other franchise agreements or any other
agreements in effect between Franchisee and Franchisor and/or any of Franchisor’s affiliates, a default by
Franchisee under the terms and conditions of this or any other such agreement, shall at the option of
Franchisor, constitute a default under all such agreements.
15.3 Obligations of Franchisee upon Termination, Expiration or Non-Renewal. Immediately upon

termination, expiration or non-renewal of this Agreement for any reason:

A. All rights, privileges and licenses granted by Franchisor to Franchisee shall immediately
cease and be null and void and of no further force and effect, and all such rights, privileges and licenses
shall immediately revert to Franchisor;
B. Franchisee shall cease to be an authorized Stretch Lab franchise owner, and shall
immediately, at its own expense, remove all signs, obliterate or remove all letterheads, labels or any other
item or form of identification that would in any way link or associate Franchisee, its goods and/or services
with Franchisor, and shall immediately cease to use, in any manner, the Marks, System and any other
copyrighted information or materials or any confidential information Franchisee obtained as a result of the
franchise granted to Franchisee;
C. Franchisee shall immediately terminate all advertising and promotional efforts and any
other act that would in any way indicate that Franchisee is or was ever an authorized Stretch Lab franchisee;
D. Franchisee shall cancel any assumed name of Franchisee or equivalent registration that
contains any Proprietary Mark, and Franchisee shall furnish Franchisor with evidence satisfactory to
Franchisor of compliance with this obligation within five (5) days after termination, expiration or non-
renewal of this Agreement;
E. Franchisee agrees not to use any reproduction, counterfeit, copy, or colorable imitation of
the Marks that is likely to cause confusion, mistake or deception, or that is likely to dilute Franchisor’s
rights in and to the Marks, and further agrees not to use any trade dress or designation of origin or
description or representation that falsely suggests or represents an association or connection with
Franchisor;
F. Franchisee shall pay all sums owing to Franchisor and its approved suppliers for
outstanding amounts owed under the Franchise Agreement and otherwise in connection with the Studio. In
the event of termination for any default of Franchisee, such sums shall include all damages, costs and
expenses, including reasonable legal fees, incurred by Franchisor as a result of the default;
G. Franchisee shall comply with the covenants set forth in Articles 12 and 13 of this
Agreement; and
H. Franchisee shall, at Franchisor’s option, assign to Franchisor any interest that Franchisee
has in any lease for the premises of the Studio;
I. Franchisor shall have the option, exercisable by giving written notice thereof within thirty
(30) days from the date of such termination, expiration or non-renewal to purchase any and all equipment,
furniture, fixtures, signs, sundries and supplies owned by Franchisee and used in the Studio, at the lesser of
(i) Franchisee’s cost less depreciation computed on a reasonable straight line basis (as determined in
accordance with generally accepted accounting principles and consistent with industry standards and
customs) or (ii) fair market value of such assets, less(in either case) any outstanding liabilities of the Studio.
In addition, Franchisor shall have the option to assume Franchisee’s lease for the lease location of the
Studio, or if an assignment is prohibited, a sublease for the full remaining term on the same terms and
conditions as Franchisee’s lease. No value will be attributed to the value of the Marks or the System or to
the assignment of the lease (or sublease) for the premises or the assignment of any other assets used in
conjunction with the Studio, and Franchisor will not be required to pay any separate consideration for any
such assignment or sublease. If the parties cannot agree on fair market value within thirty (30) days of
Franchisor’s notice of intent to purchase, fair market value shall be determined by an experienced,
professional and impartial third party appraiser without regard to goodwill or going concern value,
designated by Franchisor and acceptable to Franchisee, whose determination shall be final and binding on

both parties. The cost of such appraisal shall be borne equally by Franchisor and Franchisee. If the parties
cannot agree upon an appraiser one shall be appointed by the American Arbitration Association, upon
petition of either party. Franchisor shall have the right to withhold from the purchase price funds sufficient
to pay all outstanding debts and liabilities of Franchisee and the Studio and to pay such debts and liabilities
from such funds.
J. Termination, expiration or non-renewal of this Agreement shall not affect, modify or

discharge any claims, rights, causes of action or remedies, which Franchisor may have against Franchisee,
whether under this Agreement or otherwise, for any reason whatsoever, whether such claims or rights arise
before or after termination.
15.4 Franchisor’s Rights and Remedies in Addition to Termination.
A. If Franchisee shall be in default in the performance of any of its obligations or breach any
term or condition of this Agreement, in addition to Franchisor’s right to terminate this Agreement, and
without limiting any other rights or remedies to which Franchisor may be entitled at law or in equity,
Franchisor may, at its election, immediately or at any time thereafter, and without notice to Franchisee cure
such default for the account of and on behalf of Franchisee including, without limitation, entering upon and
taking possession of the Studio and to taking in the name of Franchisee, all other actions necessary to effect
the provisions of this Agreement and any such entry or other action shall not be deemed a trespass or other
illegal act, and Franchisor shall not be liable in any manner to Franchisee for so doing, and Franchisee shall
pay the entire cost thereof to Franchisor on demand, including reasonable compensation to Franchisor for
the management of the Studio.
B. As an alternative to Franchisor’s exercising its rights under Section 15.4A, above, and only
in the event of a premature termination of this Agreement, Franchisee shall pay Franchisor liquidated
damages in an amount equal to the sum of the royalties paid to Franchisor for the twenty four (24) months
prior to the termination of this Agreement; provided, however exercise of this right shall not preclude
Franchisor’s right to seek injunctive relief as outlined in Section 16.5. Franchisee’s payment to Franchisor
would not be a penalty for breaching this Franchise Agreement, but rather a reasonable estimate of the
losses Franchisor would incur in the event of the closure of Franchisee’s franchised business. Should
Franchisor elect to enforce its right to liquidated damages under this Section, Franchisee’s obligation to pay
such damages would be in addition to Franchisee’s obligations to (i) pay all amounts still owed to
Franchisor, and (ii) adhere to Franchisee’s other post-termination obligations. Franchisor’s right to
payment of liquidated damages would be in addition to all other post-termination remedies available to
Franchisor under the law.

Your Initials: __________ / __________
16. RESOLUTION OF DISPUTES
16.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of California without reference to the state’s conflict of laws principles (subject to state law),
except that: (i) any disputes or actions involving any non-competition covenants set forth in this Agreement
or any other Franchise Agreement, including the interpretation and enforcement thereof, must be governed
by the law of the state where the Development Area or Studio, as applicable, is located.; and (ii) any
franchise-specific or franchise-applicable laws of California, including those related to pre-sale disclosure
and the franchise relationship generally, will not apply to this Agreement or franchise awarded hereunder

unless the awarding of said franchise meets all jurisdiction and other requirements to specifically fall within
the scope of such California laws, regulations or statutes without reference to, and independent of, any
reference to this choice of law provision.
16.2 Internal Dispute Resolution. Franchisee must first bring any claim or dispute between Franchisee
and Franchisor to Franchisor’s management and make every effort to resolve the dispute internally.
Franchisee must exhaust this internal dispute resolution procedure before Franchisee may bring
Franchisee’s dispute before a third party. This agreement to first attempt resolution of disputes internally
shall survive termination or expiration of this Agreement.
16.3 Mediation. At Franchisor’s option, all claims or disputes between Franchisee and Franchisor (or
its affiliates) arising out of, or in any way relating to, this Agreement or any other agreement by and between
Franchisee and Franchisor (or its affiliates), or any of the parties’ respective rights and obligations arising
from such agreement, which are not first resolved through the internal dispute resolution procedure set forth
in Section 16.1 above, will be submitted first to mediation to take place at Franchisor’s then-current
corporate headquarters under the auspices of the American Arbitration Association (“AAA”), in accordance
with AAA’s Commercial Mediation Rules then in effect. Before commencing any legal action against
Franchisor or its affiliates with respect to any such claim or dispute, Franchisee must submit a notice to
Franchisor, which specifies, in detail, the precise nature and grounds of such claim or dispute. Franchisor
will have a period of thirty (30) days following receipt of such notice within which to notify Franchisee as
to whether Franchisor or its affiliates elects to exercise its option to submit such claim or dispute to
mediation. Franchisee may not commence any action against Franchisor or its affiliates with respect to any
such claim or dispute in any court unless Franchisor fails to exercise its option to submit such claim or
dispute to mediation, or such mediation proceedings have been terminated either: (i) as the result of a written
declaration of the mediator(s) that further mediation efforts are not worthwhile; or (ii) as a result of a written
declaration by Franchisor. Franchisor’s rights to mediation, as set forth herein, may be specifically enforced
by Franchisor. Each party will bear its own cost of mediation and Franchisor and Franchisee will share
mediator fees equally. This agreement to mediate will survive any termination or expiration of this
Agreement. The parties will not be required to first attempt to mediate a controversy, dispute, or claim
through mediation if such controversy, dispute, or claim concerns an allegation that a party has violated (or
threatens to violate, or poses an imminent risk of violating): (a) any federally protected intellectual property
rights in the Marks, the System, or in any Confidential Information or other confidential information; (b)
any of the restrictive covenants contained in this Agreement; and (c) any of Franchisee’s payment
obligations under this Agreement.
16.4 Mandatory Binding Arbitration. Except as provided in Section 16.5 of this Agreement,
Franchisee and Franchisor agree that any claim, dispute, suit, action, controversy, or proceeding of any type
whatsoever including any claim for equitable relief and/or where either party is acting as a “private attorney
general,” suing pursuant to a statutory claim or otherwise, between or involving Franchisee and Franchisor
on whatever theory and/or facts based, and whether or not arising out of this Agreement, (each a “Claim”)
will be processed in the following manner:
A. Franchisee and Franchisor each expressly waives all rights to any court proceeding, except
as expressly provided in Section 16.5 below;
B. All Claims shall be submitted to and resolved by binding arbitration that will take place at
Franchisor’s headquarters or other location that Franchisor designates in Orange County, California, before
and in accordance with the arbitration rules of the American Arbitration Association. Judgment upon the
award rendered by the arbitrator shall be entered in any Court having jurisdiction thereof.

C. Franchisor and Franchisee agree that any arbitration between Franchisor and Franchisee
shall be of Franchisee’s individual claim and that the claim subject to arbitration shall not be arbitrated on
a class-wide basis.
D. This arbitration provision shall be deemed to be self-executing, and in the event either party
fails to appear at any properly noticed arbitration proceeding, an award may be entered against such party
notwithstanding said failure to appear.
E. In no event shall Franchisor be liable to Franchisee for punitive damages in any action
arising out of or relating to this Agreement, or any breach, termination or cancellation hereof.
F. Any arbitration proceeding involving this Agreement or the Studio generally, including all
demands, other filings and evidence submitted in connection with such proceeding, must be kept strictly
confidential by Franchisee and its representatives, unless Franchisor agrees otherwise in writing.
16.5 Other Proceedings (Right to Injunctive Relief). Franchisee acknowledges and agrees that
irreparable harm could be caused to Franchisor by Franchisee’s violation of certain provisions of this
Agreement and, as such, in addition to any other relief available at law or equity, Franchisor shall be entitled
to obtain in any court of competent jurisdiction, without bond, restraining orders or temporary or permanent
injunctions in order to enforce, among other items, the provisions of this Agreement relating to: (i)
Franchisee’s use of the Marks and Confidential Information (including any proprietary software used in
connection with the Studio); (ii) the in-term covenant not to compete, as well as any other violations of the
restrictive covenants set forth in this Agreement; (iii) Franchisee’s obligations on termination or expiration
of this Agreement; (iv) disputes and controversies based on or arising under the Lanham Act, or otherwise
involving the Marks, as now or hereafter amended; (v) disputes and controversies involving enforcement
of the Franchisor’s rights with respect to confidentiality under this Agreement; and (vi) the prohibition of
any act or omission by Franchisee or its employees that constitutes a violation of applicable law, threatens
Franchisor’s franchise system or threatens other franchisees of Franchisor. Franchisee’s only remedy if
such an injunction is entered will be the dissolution of the injunction, if appropriate, and Franchisee waives
all damage claims if the injunction is wrongfully issued.
16.6 Choice of Forum.
A. Franchisee acknowledges and agrees that this Agreement is entered into in California and
that, except for those actions described in Sections 16.4 and 16.5 above, any action brought by either party
against the other for the purpose of enforcing the terms and provisions of this Agreement (provided such
action is not subject to the arbitration proceeding pursuant to the terms of this Agreement or applicable law)
shall be instituted solely in a state or federal court having subject matter jurisdiction thereof only in
California in the judicial district in which Franchisor has its principal place of business and in no other court
and that Franchisee irrevocably waives any objection Franchisee may have to the exclusive jurisdiction or
the exclusive venue of such court.
B. If Franchisee institutes any arbitration or other legal proceedings in any venue or other
court other than those specified, Franchisee shall assume all of Franchisor’s costs in connection therewith,
including, without limitation, reasonable attorney fees regardless of the outcome of such arbitration or legal
proceedings.
C. Franchisee acknowledges that Franchisor may bring an action in any other court of
competent jurisdiction to seek and obtain injunctive relief as set forth in Section 16.5 above, including to
enforce Franchisee’s non-compete obligations hereunder.

16.7 Waiver of Punitive Damages. Franchisee hereby waives to the fullest extent permitted by law,
any right to or claim for any punitive, exemplary, incidental, indirect, special or consequential damages
(including, without limitation, lost profits) against Franchisor arising out of any cause whatsoever (whether
such cause be based in contract, negligence, strict liability, other tort or otherwise) and agrees that in the
event of a dispute, that Franchisee’s recovery is limited to actual damages. If any other term of this
Agreement is found or determined to be unconscionable or unenforceable for any reason, the foregoing
provisions shall continue in full force and effect, including, without limitation, the waiver of any right to
claim any consequential damages. Nothing in this Section or any other provision of this Agreement shall
be construed to prevent Franchisor from claiming and obtaining expectation or consequential damages,
including lost future royalties for the balance of the term of this Agreement if it is terminated due to
Franchisee’s default, which the parties agree and acknowledge Franchisor may claim under this Agreement.
16.8 WAIVER OF JURY TRIAL. THE PARTIES HEREBY AGREE TO WAIVE TRIAL BY JURY
IN ANY ACTION, PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR EQUITY,
REGARDLESS OF WHICH PARTY BRINGS SUIT. THIS WAIVER SHALL APPLY TO ANY
MATTER WHATSOEVER BETWEEN THE PARTIES HERETO WHICH ARISES OUT OF OR IS
RELATED IN ANY WAY TO THIS AGREEMENT, THE PERFORMANCE OF EITHER PARTY,
AND/OR FRANCHISEE’S PURCHASE FROM FRANCHISOR OF THE FRANCHISE AND/OR ANY
GOODS OR SERVICES.
16.9 WAIVER OF CLASS ACTIONS. THE PARTIES AGREE THAT ALL PROCEEDINGS
ARISING OUT OF OR RELATED TO THIS AGREEMENT, OR THE SALE OF THE FRANCHISED
BUSINESS, WILL BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-WIDE BASIS, AND
THAT ANY PROCEEDING BETWEEN FRANCHISEE, FRANCHISEE’S GUARANTORS AND
FRANCHISOR OR ITS AFFILIATES/OFFICERS/EMPLOYEES MAY NOT BE CONSOLIDATED
WITH ANY OTHER PROCEEDING BETWEEN FRANCHISOR AND ANY OTHER THIRD PARTY.
16.10 Attorneys’ Fees and Costs.
A. If legal action or arbitration is necessary to enforce the terms and conditions of this Agreement,
the prevailing party shall be entitled to recover reasonable compensation for preparation, investigation,
court costs, arbitration costs (if applicable) and reasonable attorneys’ fees, from the non-prevailing party as
fixed by an arbitrator or court of competent jurisdiction.
B. Separate and distinct from the right of a prevailing party to recover expenses, costs and
fees in connection with any legal proceeding or arbitration, the prevailing party shall also be entitled to
receive all expenses, costs and reasonable attorneys’ fees incurred in connection with the enforcement of
any arbitration award or judgment entered. Furthermore, the right to recover post-arbitration award and
post-judgment expenses, costs and attorneys’ fees shall be severable and shall survive any award or
judgment and shall not be deemed merged into such judgment.
C. Apart from the obligations above in this Section 16.10, Franchisee agrees and
acknowledges that it will be responsible for the legal fees and other costs that Franchisor incurs in
connection with certain modifications that Franchisor agrees to make to the Franchise Agreement, including
without limitation, modifications made to address the following situations: (i) relocation; or (ii) any other
amendment to extend a given performance deadline of Franchisee, modify the territory awarded hereunder,
or otherwise modify, amend or supplement this Agreement in any way at the request of Franchisee or as
necessary for Franchisee to avoid this Agreement being in default or subject to termination. Franchisor may
set forth flat fee amounts designed to help defray the costs associated with addressing certain of the
foregoing situations in the context of this Agreement or any other agreement with Franchisor, whether in
the Manuals or otherwise in a writing distributed to System franchisees.

16.11 No Withholding of Payments. Franchisee shall not withhold all or any part of any payment to
Franchisor or any of its affiliates on the grounds of Franchisor’s alleged nonperformance or as an offset
against any amount Franchisor or any of Franchisor’s affiliates allegedly may owe Franchisee under this
Agreement or any related agreements.
16.12 Limitation of Actions. Franchisee further agrees that no cause of action arising out of or under this
Agreement may be maintained by Franchisee against Franchisor unless brought before the expiration of
one (1) year after (a) the act, transaction or occurrence upon which such action is based or (b) the expiration
of one year after the Franchisee becomes aware, or should have become aware after reasonable
investigation, of facts or circumstances reasonably indicating that Franchisee may have a claim against
Franchisor hereunder, whichever occurs sooner. Any claim, action, or other proceeding not brought against
Franchisor or its affiliates within this period shall be barred as a claim, counterclaim, defense, or set-off.
Franchisee hereby waives the right to obtain any remedy based on alleged fraud, misrepresentation, or
deceit by Franchisor, including, without limitation, rescission of this Agreement, in any mediation, judicial,
or other adjudicatory proceeding arising hereunder, except upon a ground expressly provided in this
Agreement, or pursuant to any right expressly granted by any applicable statute expressly regulating the
sale of franchises, or any regulation or rules promulgated thereunder.
16.13 Third Party Beneficiaries. Franchisor’s officers, directors, shareholders, agents and/or employees
are express third-party beneficiaries of the provisions of this Agreement, including the dispute resolution
provisions set forth in this Section 16, each having authority to specifically enforce the right to
mediate/arbitrate claims asserted against such person(s) by Franchisee.

Your Initials: __________ / __________
17. MISCELLANEOUS PROVISIONS
17.1 Severability. Except as provided in Section 13.3 of this Agreement, each article, section,
paragraph, term and provision of this Agreement, or any portion thereof, shall be considered severable and
if, for any reason, any such portion of this Agreement is held by an arbitrator or by a court of competent
jurisdiction to be unenforceable due to any applicable existing or future law or regulation, such portion
shall not impair the operation of or have any effect upon, the remaining portions of this Agreement which
will remain in full force and effect. No right or remedy conferred upon or reserved to Franchisor or
Franchisee by this Agreement is intended to be, nor shall be deemed, exclusive of any other right or remedy
herein or by law or equity provided or permitted, but, each shall be cumulative of every other right or
remedy.
17.2 Waiver and Delay. No failure, refusal or neglect of Franchisor to exercise any right, power,
remedy or option reserved to it under this Agreement, or to insist upon strict compliance by Franchisee with
any obligation, condition, specification, standard or operating procedure in this Agreement, shall constitute
a waiver of any provision of this Agreement and the right of Franchisor to demand exact compliance with
this Agreement, or to declare any subsequent breach or default or nullify the effectiveness of any provision
of this Agreement. Subsequent acceptance by Franchisor of any payment(s) due it under this Agreement
shall not be deemed to be a waiver by Franchisor of any preceding breach by Franchisee of any terms,
covenants or conditions of this Agreement.

17.3 Designation of Responsible Parties. Franchisee represents and warrants to Franchisor that the list
below states: (i) the name, mailing address and equity interest of each person holding any shares or other
form of ownership, or security interest convertible into an equity interest, in Franchisee, showing percentage
of ownership held by each and (ii) the name and mailing address of the individual(s) who will be the
Operating Principal(s) of the Studio. Each Operating Principal named below has the authority to act for
Franchisee in all matters relating to the franchised Studio granted hereunder, including voting
responsibilities. Only those individuals who are party to this Agreement and have an ownership interest in
the franchise entity may be listed as an Operating Principal. Franchisee shall promptly notify Franchisor
of any change in any such information. Any change in the Operating Principal(s), or in ownership
information of Franchisee, is subject to Article 14 and the training requirements of this Agreement:
Franchisee is a  ____________________, organized under the laws of

__________________________, or  Franchisee is an individual or group of individuals, and hereby
represents and warrants that the information stated below is true and accurate as of the date set forth below:
Shareholder, Partner, Member Percentage of

or Individual Name and Address Ownership Interest
_____________________________ ____________
_____________________________ _______
Operating Principal (may also be referred to as the “Designated Operator” in the
FDD):
_____________________________
17.4 Franchisor’s Discretion. Except as otherwise specifically referenced herein, all acts, decisions,
determinations, specifications, prescriptions, authorizations, approvals, consents and similar acts by
Franchisor may be taken or exercised in the sole and absolute discretion of Franchisor, regardless of the
impact upon Franchisee. Franchisee acknowledges and agrees that when Franchisor exercises its discretion
or judgment, its decisions may be for the benefit of Franchisor or the Stretch Lab franchise network and
may not be in the best interest of Franchisee as an individual franchise owner.
17.5 Notices.
A. All notices which the parties hereto may be required or permitted to give under this
Agreement shall be in writing and shall be personally delivered or mailed by certified or registered mail,
return receipt requested, postage paid, or by reliable overnight delivery service, addressed as follows:
If to Franchisor:
17877 Von Karman Ave., Suite 100
Irvine, CA 92614
Attention: Lou DeFrancisco
With a copy to:

William R. Graefe, Esq.
Fisher Zucker, LLC
21 South 21st Street
Philadelphia, PA 19103

If to Franchisee:
____________________________
____________________________
____________________________
B. The addressees herein given for notices may be changed at any time by either party by
written notice given to the other party as herein provided. Notices delivered by certified or registered mail
shall be deemed to have been given three (3) business days after postmark by United States Postal Service,
or the next business day after deposit with reliable overnight delivery service or when delivered by hand.
17.6 No Recourse Against Nonparty Affiliates. All claims, obligations, liabilities, or causes of action
(whether in contract or in tort, in law or in equity, or granted by statute) that may be based upon, in respect
of, arise under, out or by reason of, be connected with, or relate in any manner to this Agreement, or the
negotiation, execution, or performance of this Agreement (including any representation or warranty made
in, in connection with, or as an inducement to this Agreement, but not including separate undertakings such
as guarantees of performance, personal guaranties, or corporate guarantees), may be made only against (and
are those solely of) the entities that are expressly identified as parties in the preamble to this Agreement
(“Contracting Parties”). No Person who is not a Contracting Party, including without limitation any
director, officer, employee, incorporator, member, partner, manager, stockholder, affiliate, agent, attorney,
or representative of, and any financial advisor or lender to, any of the foregoing (“Nonparty Affiliates”),
shall have any liability (whether in contract or in tort, in law or in equity, or granted by statute) for any
claims, causes of action, obligations, or liabilities arising under, out of, in connection with, or related in any
manner to this Agreement or based on, in respect of, or by reason of this Agreement or its negotiation,
execution, performance, or breach; and, to the maximum extent permitted by law, each Contracting Party
hereby waives and releases all such liabilities, claims, causes of action, and obligations against any such
Nonparty Affiliates, unless such liabilities, claims, causes of action, and obligations arise from deliberately
fraudulent acts. Without limiting the foregoing, to the maximum extent permitted by law, (a) each
Contracting Party hereby waives and releases any and all rights, claims, demands or causes of action that
may otherwise be available at law or in equity, or granted by statute, to avoid or disregard the entity form
of a Contracting Party or otherwise impose liability of a Contracting Party on any Nonparty Affiliate,
whether granted by statute or based on theories of equity, agency, control, instrumentality, alter ego,
domination, sham, single business enterprise, piercing the veil, unfairness, undercapitalization, or
otherwise; and (b) each Contracting Party disclaims any reliance upon any Nonparty Affiliates with to the
performance of this Agreement or any representation or warranty made in, in connection with, or as an
inducement to this Agreement. Nothing herein is intended to prevent a Contracting Party from pursuing
any distinct legal rights it may have against a Nonparty Affiliate which arise from a separate document,
such as a guaranty of performance, personal guaranty, corporate guaranty or similar agreement.
Notwithstanding any other provision of this Agreement which limits the right of prospective Third-Party
Beneficiaries, any Nonparty Affiliate may rely on this provision and enforce it against any Contracting
Party or other Person or entity.

Your Initials: __________ / ________
18. ACKNOWLEDGMENTS
18.1 THE SUBMISSION OF THIS AGREEMENT DOES NOT CONSTITUTE AN OFFER AND
THIS AGREEMENT SHALL BECOME EFFECTIVE ONLY UPON THE EXECUTION HEREOF BY

THE FRANCHISOR AND THE FRANCHISEE. THE DATE OF EXECUTION BY THE FRANCHISOR
SHALL BE CONSIDERED TO BE THE DATE OF EXECUTION OF THIS AGREEMENT.
18.2 THIS AGREEMENT SHALL NOT BE BINDING ON THE FRANCHISOR UNLESS AND
UNTIL IT SHALL HAVE BEEN ACCEPTED AND SIGNED BY AN AUTHORIZED OFFICER OF
THE FRANCHISOR.
18.3 FRANCHISEE ACKNOWLEDGES THAT IT RECEIVED A COMPLETE COPY OF THIS

AGREEMENT FOR A PERIOD NOT LESS THAN FOURTEEN (14) CALENDAR DAYS, DURING
WHICH TIME FRANCHISEE CONDUCTED AN INDEPENDENT INVESTIGATION OF THE
BUSINESS LICENSED HEREUNDER TO THE EXTENT OF FRANCHISEE’S DESIRE TO DO SO.
FRANCHISEE RECOGNIZES AND ACKNOWLEDGES THAT THE BUSINESS VENTURE
CONTEMPLATED BY THIS AGREEMENT INVOLVES BUSINESS RISKS, AND THAT ITS
SUCCESS WILL BE LARGELY DEPENDENT UPON THE ABILITY OF THE FRANCHISEE AS AN
INDEPENDENT BUSINESSPERSON. FRANCHISOR EXPRESSLY DISCLAIMS THE MAKING OF,
AND FRANCHISEE ACKNOWLEDGES THAT IT HAS NOT RECEIVED, ANY WARRANTY OR
GUARANTEE, EXPRESS OR IMPLIED, THAT FRANCHISEE WILL BE SUCCESSFUL IN THIS
VENTURE OR THAT THE BUSINESS WILL ATTAIN ANY LEVEL OF SALES VOLUME, PROFITS,
OR SUCCESS. FRANCHISEE ACKNOWLEDGES THAT THIS AGREEMENT, THE FRANCHISE
DISCLOSURE DOCUMENT (“FDD”), AND THE EXHIBITS HERETO CONSTITUTE THE ENTIRE
AGREEMENT OF THE PARTIES. THIS AGREEMENT TERMINATES AND SUPERSEDES ANY
PRIOR AGREEMENT BETWEEN THE PARTIES CONCERNING THE SAME SUBJECT MATTER.
FRANCHISEE REPRESENTS, WARRANTS AND ACKNOWLEDGES THAT IT HAS NOT RELIED
ON ANY INFORMATION NOT SPECIFICALLY DISCLOSED IN THE FDD IN MAKING ITS
DETERMINATION TO ENTER INTO THIS AGREEMENT.
18.4 FRANCHISEE AGREES AND ACKNOWLEDGES THAT FULFILLMENT OF ANY AND

ALL OF FRANCHISOR’S OBLIGATIONS WRITTEN IN THIS AGREEMENT OR BASED ON ANY
ORAL COMMUNICATIONS WHICH MAY BE RULED TO BE BINDING IN A COURT OF LAW
SHALL BE FRANCHISOR’S SOLE RESPONSIBILITY AND NONE OF FRANCHISOR’S AGENTS,
REPRESENTATIVES, NOR ANY INDIVIDUALS ASSOCIATED WITH FRANCHISOR’S
FRANCHISE COMPANY SHALL BE PERSONALLY LIABLE TO FRANCHISEE FOR ANY
REASON. THIS IS AN IMPORTANT PART OF THIS AGREEMENT. FRANCHISEE AGREES THAT
NOTHING THAT FRANCHISEE BELIEVES FRANCHISEE HAS BEEN TOLD BY FRANCHISOR
OR FRANCHISOR’S REPRESENTATIVES SHALL BE BINDING UNLESS IT IS WRITTEN IN THIS
AGREEMENT. THIS IS AN IMPORTANT PART OF THIS AGREEMENT. DO NOT SIGN THIS
AGREEMENT IF THERE IS ANY QUESTION CONCERNING ITS CONTENTS OR ANY
REPRESENTATIONS MADE.

Your Initials: __________ / __________
19. ENTIRE AGREEMENT
This Agreement, the documents referred to herein, and the exhibits hereto, constitute the entire and only
agreement between the parties concerning the granting, awarding and licensing of Franchisee as an
authorized Stretch Lab Franchisee at the Studio location, and supersede all prior and contemporaneous
agreements. There are no representations, inducements, promises, agreements, arrangements, or

undertakings, oral or written, between the parties other than those set forth herein. Except for those
permitted to be made unilaterally by Franchisor hereunder, no amendment, change or variance from this
Agreement shall be binding on either party unless mutually agreed to by the parties and executed by their
authorized officers or agents in writing. This Agreement does not alter agreements between Franchisor and
Franchisee for other locations. Nothing in this Agreement or in any related agreement, however, is intended
to disclaim the representations Franchisor made in the FDD that Franchisor furnished to Franchisee.
IN WITNESS WHEREOF, the parties have executed this Agreement on the dates set forth below to be
effective upon execution by Franchisor.
[THE REST OF THIS PAGE HAS BEEN LEFT INTENTIONALLY BLANK

SIGNATURES ON THE FOLLOWING PAGE]

“FRANCHISOR” “FRANCHISEE”
If Franchisee is an individual:
By:_________________________ Signature:_______________________
Date: __________________________
Title: _______________________
Signature: _______________________
Accepted: ___________________ Date: __________________________
[Signatures continued on next page.]
If Franchisee is a corporation or other entity:
_______________________________
[Name of Franchisee]
By: ____________________________
Title: __________________________
Date: __________________________
By: ____________________________
Title: __________________________
Date: __________________________

EXHIBIT 1 TO
STRETCH LAB FRANCHISE AGREEMENT
AUTHORIZED LOCATION ADDENDUM
This Addendum is made to the Stretch Lab Franchise Agreement (the “Franchise Agreement”) between Stretch
Lab Franchise, LLC (“Franchisor”), and ________________________ (“Franchisee”), dated
__________________, 20__.
1. Preservation of Agreement. Except as specifically set forth in this Addendum, the Franchise Agreement
shall remain in full force and effect in accordance with its terms and conditions. This Addendum is attached to
and upon execution becomes an integral part of the Franchise Agreement.
2. Authorized Location. The parties hereto agree that the Authorized Location referred to in Section 1.3
of the Franchise Agreement shall be the following:
_____.
3. Designated Territory, if any. Pursuant to Section 1.3 of the Franchise Agreement, Franchisee’s
Designated Territory will be defined as follows (if identified on a map, please attach map and reference attachment
below):
This Addendum is agreed to and accepted by the parties this ___ day of _________________, 20__.
FRANCHISOR:
By: ______________________________
Title: _____________________________
FRANCHISEE:
By: ______________________________
Title: _____________________________
By: ______________________________
Title: _____________________________

EXHIBIT 2 TO THE
ELECTRONIC FUNDS TRANSFER AGREEMENT
This Electronic Funds Transfer Agreement (the “Agreement”) is made on this ___day of
___________________________, 20__ by and between Stretch Lab Franchise, LLC. (“Franchisor”), and
_____________________________ or their assignee, if a partnership, corporation or limited liability company is
later formed (“Franchisee").
Whereas, Franchisor and Franchisee are parties to a Stretch Lab Franchise Agreement executed on even
date herewith (the “Franchise Agreement”) and desire to enter into an Addendum to the Franchise Agreement;
Now, therefore in consideration of the mutual promises contained herein and as an inducement to
Franchisor to execute the Franchise Agreement, the parties agree as follows:
A. Franchisee shall pay any and all fees and other charges in connection with this Addendum and the
Franchise Agreement (including, without limitation, the Royalty Fees, contributions to the Fund and any other
payments due to Franchisor by Franchisee, and any applicable late fees and interest charges) by electronic,
computer, wire, automated transfer, ACH debiting, and bank clearing services (collectively "electronic funds
transfers" or “EFT”‘), and Franchisee shall undertake all action necessary to accomplish such transfers.
B. Upon execution and delivery of this Agreement, Franchisee shall execute and deliver two (2) originals of
the “Electronic Debit Authorization” attached as Exhibit 3 to the Franchise Agreement, which authorizes
Franchisee’s bank or other financial institution to accept debit originations, electronic debit entries, or other EFT,
and electronically deposit fees and contributions owing Franchisor directly to Franchisor’s bank account(s). Upon
Franchisor’s request, Franchisee shall deliver to Franchisor all additional information that Franchisor deems
necessary (including, without limitation, financial institution of origin and relevant accounts and ABA/transit
numbers for any new bank accounts that Franchisee opens after the date of this Addendum) in connection with
such EFT.
C. By executing this Addendum, Franchisee authorizes Franchisor to withdraw funds at such days and times
as Franchisor shall determine via EFT from Franchisee’s bank account for all fees and other charges in connection
with the Franchise Agreement and this Addendum, as described in the first sentence of this paragraph. Franchisee
authorizes weekly ACH debits via EFT based on an amount equal to the total weekly amount due Franchisor, as
set forth in Section 5 of the Franchise Agreement.
D. Franchisee is responsible for paying all service charges and other fees imposed or otherwise resulting
from action by Franchisee’s bank in connection with EFT by Franchisor, including, without limitation, any and
all service charges and other fees arising in connection with any EFT by Franchisor not being honored or processed
by Franchisee’s bank for any reason and a Fifty Dollar ($50) charge by Franchisor for processing the EFT. Upon
written notice by Franchisor to Franchisee, Franchisee may be required to pay any amount(s) due under the
Franchise Agreement and/or this Addendum directly to Franchisor by check or other non-electronic means in lieu
of EFT at Franchisor’s discretion. It shall be a non-curable event of default under Article 15 of the Franchise
Agreement if Franchisee closes any bank account without completing all of the following forthwith after such
closing: (1) immediately notifying Franchisor thereof in writing, (2) immediately establishing another bank
account, and (3) executing and delivering to Franchisor all documents necessary for Franchisor to begin and
continue making withdrawals from such bank account by EFT as this Addendum permits.

E. Except as specifically set forth in this Addendum, the Franchise Agreement shall remain in full force and
effect in accordance with its terms and conditions. This Addendum is attached to and upon execution becomes an
integral part of the Franchise Agreement.
F. Wherefore, the parties have set forth their hand and seal on the day and date first above written.
FRANCHISOR:
By: ______________________________
Title: _____________________________
FRANCHISEE:
By: ______________________________
Title: _____________________________
By: ______________________________
Title: _____________________________

EXHIBIT 3 TO THE
ELECTRONIC DEBIT AUTHORIZATION

[SAMPLE – MAY OBTAIN INFORMATION IN DIFFERENT MANNER]
FRANCHISOR: Stretch Lab Franchise, LLC
FRANCHISOR ID NUMBER: ___________________________
The undersigned hereby authorizes Stretch Lab Franchise, LLC (the “Franchisor”), to initiate debit entries to the
undersigned’s checking account indicated below and the depository named below (the “Depository”), to debit the
same to such account.
Depository Name: ________________________________________

Branch: ________________________________________
City State and Zip Code: ________________________________________
________________________________________
Transit/ABA No.: ________________________________________
Account Number: ________________________________________
This authority is to remain in full force and effect until the underlying obligations under the Franchise Agreement
have been satisfied in full or released in writing by Franchisor.
This authorization further confirms my understanding of Exhibit 2 to the Franchise Agreement signed by me/us
in which I/we expressly agree that this authorization shall apply to any and all Depositories and bank accounts
with which I/we open accounts during the term of the Franchisee Agreement and any renewals. Without limiting
the generality of the forgoing, I/we understand that if I/we close any bank account, I/we are obligated immediately
to: (i) notify Franchisor thereof in writing, (ii) establish another bank account, and (iii) execute and deliver to
Franchisor all documents necessary for Franchisor to begin and continue making withdrawals from such bank
account/depository by ACH debiting or other electronic means. I/we specifically agree and declare that this
Authorization shall be the only written authorization needed from me/us in order to initiate debit entries/ACH
debit originations to my/our bank account(s) established with any Depository in the future.
DATE: _________________________________________________
ID NUMBER: _________________________________________________
PRINT NAME(S): SIGNATURE(S):
_____________________________ __________________________
___________________________ _________________________

EXHIBIT 4 TO THE
GUARANTEE, INDEMNIFICATION AND ACKNOWLEDGEMENT
For value received, and in consideration for, and as an inducement to Stretch Lab Franchise, LLC (the
"Franchisor") to execute the Stretch Lab Franchise Agreement (the "Franchise Agreement"), of even date
herewith, by and between Franchisor and ______________________ or his assignee, if a partnership, corporation
or limited liability company is later formed (the "Franchisee"), _____________________________ (the
“Guarantor(s)”), jointly and severally, hereby unconditionally guarantee to Franchisor and its successors and
assigns the full and timely performance by Franchisee of each obligation undertaken by Franchisee under the
terms of the Franchise Agreement, including all of Franchisee’s monetary obligations arising under or by virtue
of the Franchise Agreement.
Upon demand by Franchisor, Guarantor(s) will immediately make each payment required of Franchisee under the
Franchise Agreement. Guarantor(s) hereby waive any right to require Franchisor to: (a) proceed against
Franchisee for any payment required under the Franchise Agreement; (b) proceed against or exhaust any security
from Franchisee; or (c) pursue or exhaust any remedy, including any legal or equitable relief, against Franchisee.
Without affecting the obligations of Guarantor(s) under this Guarantee, Indemnification and Acknowledgment,
Franchisor may, without notice to Guarantor(s), extend, modify, or release any indebtedness or obligation of
Franchisee, or settle, adjust or compromise any claims against Franchisee.
Guarantor(s) waive notice of amendment of the Franchise Agreement and notice of demand for payment
by Franchisee, and agree to be bound by any and all such amendments and changes to the Franchise
Agreement.
Guarantor(s) hereby agree to defend, indemnify and hold Franchisor harmless against any and all losses, damages,
liabilities, costs, and expenses (including, without limitation, reasonable attorneys’ fees, reasonable costs of
investigations, court costs, and arbitration fees and expenses) resulting from, consisting of, or arising out of or in
connection with any failure by Franchisee to perform any obligation of Franchisee under the Franchise Agreement,
any amendment, or any other agreement executed by Franchisee referred to therein.
Guarantor(s) hereby acknowledge and agree to be individually bound by all obligations and covenants of
Franchisee contained in the Franchise Agreement, including those related to non-competition and confidentiality.
This Guarantee shall terminate upon the expiration or termination of the Franchise Agreement, except that all
obligations and liabilities of Guarantor(s) that arise from events that occurred on or before the effective date of
such termination shall remain in full force and effect until satisfied or discharged by Guarantor(s), and all
covenants that by their terms continue in force after termination or expiration of the Franchise Agreement shall
remain in force according to their terms. Upon the death of an individual Guarantor, the estate of such Guarantor
will be bound by this Guarantee, but only for defaults and obligations existing at the time of death, and the
obligations of the other Guarantor(s) will continue in full force and effect.
The validity of this Guarantee and the obligations of Guarantor(s) hereunder shall in no way be terminated,
restricted, diminished, affected or impaired by reason of any action that Franchisor might take or be forced to take
against Franchisee, or by reason of any waiver or failure to enforce any of the rights or remedies reserved to
Franchisor in the Franchise Agreement or otherwise.
The use of the singular herein shall include the plural. Each term used in this Guarantee, unless otherwise defined
herein, shall have the same meaning as when used in the Franchise Agreement.

This Guarantee is to be performed in Orange County, California and shall be governed by and construed in
accordance with the laws of the State of California. Notwithstanding the foregoing, the undersigned specifically
agree and acknowledge that any claims, causes of action or disputes arising out of or related to Franchisee’s or
any of Guarantor’s covenants not to compete (set forth in the Franchise Agreement and now incorporated by
reference as if fully set forth in this Guaranty), including the interpretation, validity and enforcement thereof, shall
be governed by the laws where the Studio` is located. Guarantor(s) specifically agree that the provision of the
Franchise Agreement related to dispute resolution (internal dispute resolution, non-binding mediation and
arbitration), injunctive relief, waivers, attorneys’ fees and other enforcement of the Franchise Agreement shall
apply equally with respect to all claims or causes of action arising out of or related to this Guaranty in any manner
(including the interpretation thereof). Franchisor and Guarantor(s) agree that any dispute under this Guarantee
shall be resolved by arbitration as set forth in the Franchise Agreement (subject to the exceptions described
therein).
In connection therewith, each of the undersigned hereby appoints the Secretary of State for the State of California
as his agent for service of process to receive summons issued by the court in connection with any such litigation.
Franchisor and Guarantor(s) agree that any dispute under this Guarantee shall be resolved by arbitration pursuant
to Article 16 of the Franchise Agreement (except as otherwise provided in Article 16 of the Franchise Agreement).
IN WITNESS WHEREOF, each of the undersigned has signed this Guarantee as of the date of the Franchise
Agreement.
GUARANTOR(S)
[INSERT NAME]
By: _____________________
[Name], Individually
[INSERT NAME]
By: _____________________
[Name], Individually

EXHIBIT 5 TO THE
ADDENDUM TO LEASE
This Addendum to Lease (this "Addendum") modifies and supplements that certain lease dated
_________________________ and entered into by Tenant and Landlord concerning the Location at
__________________________________________________________(the "Lease").
Landlord and Tenant, intending that Stretch Lab Franchise, LLC, a Delaware limited liability company,
("Franchisor") (and its successors and assigns) be a third-party beneficiary of this Addendum, agree as follows:
(1) Tenant may display the trademarks, service marks and other commercial symbols owned by
Franchisor and used to identify the service and/or products offered at the Studio, including the name "Stretch
Lab," the Studio design and image developed and owned by Franchisor, as it currently exists and as it may be
revised and further developed by Franchisor from time to time, and certain associated logos in accordance with
the specifications required by the Stretch Lab Manual, subject only to the provisions of applicable law and in
accordance with provisions in the Lease no less favorable than those applied to other tenants of Landlord;
(2) Tenant shall not, and the Landlord shall not permit the tenant to, sublease or assign all or any part
of the Lease or the Premises, or extend the term or renew the Lease, without Franchisor’s prior written consent;
(3) Landlord shall concurrently provide Franchisor with a copy of any written default notice sent to
Tenant and thereupon grant Franchisor the right (but not the obligation) to cure any deficiency or default under
the Lease, should Tenant fail to do so, within five (5) days after the expiration of the period in which Tenant may
cure the default;
(4) The Premises shall be used only for the operation of a Stretch Lab Studio;
(5) Tenant may, without Landlord’s consent (but subject to providing Landlord with written notice
thereof), at any time assign this Lease or sublease the whole or any part of the Premises to Franchisor or any
successor, subsidiary or affiliate of Franchisor;
(6) In the event of an assignment of the Lease to Franchisor as described in (6) above, Franchisor
may further assign this Lease, subject to Landlord’s consent, such consent not to be unreasonably withheld based
on the remaining obligations of assignee under the Lease, to a duly authorized franchisee of Franchisor, and
thereupon Franchisor shall be released from all further liability under the Lease;
(7) Until changed by Franchisor, notice to Franchisor shall be sent as follows:

Irvine, CA 92614
Attn: Lou DeFrancisco
(8) None of the provisions in this Addendum or any rights granted Franchisor hereunder, may be
amended absent Franchisor’s prior written consent.

AGREED:
TENANT LANDLORD
By: _______________________________ By: ________________________________
Its: _______________________________ Its: ________________________________
Date: _____________________________ Date: _______________________________

Exhibit B
LIST OF STATE AGENTS FOR SERVICE OF PROCESS

AND STATE ADMINISTRATORS

2021 Franchise Disclosure Document – Exhibits
LIST OF STATE ADMINISTRATORS AND AGENTS FOR SERVICE OF PROCESS
CALIFORNIA ILLINOIS
Commissioner of Financial Protection and Innovation Franchise Bureau
One Sansome Street Illinois Attorney General
Suite 600 500 South Second Street
San Francisco, CA 94104 Springfield, Illinois 62706
Tel: (415) 972-8559 (217) 782-4465
Fax: (415) 972-8590
Toll Free: (866) 275-2677 INDIANA
(for service of process)
CONNECTICUT Indiana Secretary of State
Department of Banking 201 State House
Securities and Business Investments Division Indianapolis, Indiana 46204
260 Constitution Plaza
Hartford, Connecticut 06103-1800 (state agency)
Tel: (860) 240-8230 Securities Commissioner
Indiana Secretary of State
FLORIDA Securities Division, Franchise Section
Tom Kenny, Regulatory Consultant 302 West Washington Street,
Department of Agriculture & Consumer Services Room E-111
Division of Consumer Services Indianapolis, Indiana 46204
P.O. Box 6700 Tel: (317) 232-6681
Tallahassee, Florida 32314
Tel: (850) 488-2221 NORTH DAKOTA
Fax: (850) 410-3804 (for service of process)
North Dakota Securities Commissioner
HAWAII North Dakota Securities Department
(for service of process) 600 East Boulevard, 5th Floor
Commissioner of Securities of the State of Hawaii Bismarck, North Dakota 58505-0510
Department of Commerce and Consumer Affairs
Business Registration Division (state agency)
Securities Compliance Branch North Dakota Securities Department
335 Merchant Street, Room 203 600 East Boulevard, 5th Floor
Honolulu, Hawaii 96813 Bismarck, North Dakota 58505-0510
Tel: (701) 328-2910
(state agency)
Department of Commerce &Consumer Affairs OREGON
King Kalakaua Building Director, Department of Consumer &
335 Merchant Street, Rm 203 Business Services
Honolulu, Hawaii 96813 Division of Finance & Corporate
Tel: (808)586-2722 Securities
Fax: (808) 587-7559 Labor and Industries Building
Salem, Oregon 97310
MICHIGAN Tel: (503) 378-4140
(for service of process) Fax: (503) 947-7862
Michigan Department of Consumer and Industry Services Email: [email protected]
Bureau of Commercial Services
Corporations Division
PO Box 30054
Lansing, Michigan 48909
Tel: (517) 241-6470

MICHIGAN RHODE ISLAND
(state agency) Director
Department of the Attorney General Securities Division
Consumer Protection Division Department of Business Regulation,
Antitrust and Franchise Section Building 69, First Floor
670 Law Building John O. Pastore Center
Lansing, MI 48913 1511 Pontiac Avenue,
Tel: (517) 373-7117 Cranston, Rhode Island 02920
Tel: (401) 462 9582
MINNESOTA
Commissioner of Commerce SOUTH DAKOTA
85 Seventh Place East, Suite 280 Division of Insurance
St. Paul, MN 55101-2198 Securities Regulation
Tel: (651) 539-1600 124 S. Euclid, Suite 104
Pierre, South Dakota 57501
NEBRASKA (605) 773-3563
Gene Schenkelberg, Securities Analyst
Department of Banking & Finance
1200 N. Street, Suite 311 WASHINGTON
P.O. Box 95006 (state agency)
Lincoln, Nebraska 68509 Administrator
Tel: (402) 417-3445 Department of Financial Institutions
Securities Division
NEW YORK 150 Israel Road S. W.
(for service of process) Tumwater, Washington 98501
Attention: New York Secretary of State Tel: (360) 902-8760
New York Department of State Fax: (360) 902-0524
One Commerce Plaza,
99 Washington Avenue, 6th Floor WISCONSIN
Albany, NY 12231-0001 Commissioner of Securities
(518) 473-2492 Department of Financial Institutions
P.O. Box 1768
TEXAS Madison, Wisconsin 53701-1768
Statutory Document Section Tel: (608) 266-2801
Secretary of State
1719 Brazos
Austin, Texas 78701
Attn: Dorothy Wilson
Tel: (512) 475-1769
UTAH
Director, Division of Consumer Protection
Utah Dept. of Commerce
160 East Three Hundred South
SM Box 146704
Salt Lake City, Utah 84114-6704
Tel: (801) 530-6601
Fax: (801) 530-6001

VIRGINIA
Clerk of the State Corporation Commission
1300 East Main Street, 1st Floor
Richmond, Virginia 23219
(state agency)
Director
State Corporation Commission
Division of Securities and Retail Franchising
1300 East Main Street, 9th Floor
Richmond, Virginia 23219
Tel: (804) 371-9051
WASHINGTON
Administrator
Department of Financial Institutions
Securities Division
150 Israel Road SW
Tumwater, Washington 98501

Exhibit C
FINANCIAL STATEMENTS

Stretch Lab
Franchise, LLC
Financial Statements as of and for the Years Ended December 31, 2020 and 2019 and
Independent Auditors’ Report
Table of Contents
Independent Auditors’ Report 1

Balance Sheets 3
Statements of Operations 4
Statements of Changes to Member’s Deficit 5
Statements of Cash Flows 6
Notes to Financial Statements 7
i

INDEPENDENT AUDITORS’ REPORT
To the Board of Directors and Member of Stretch Lab Franchise, LLC:
We have audited the accompanying financial statements of Stretch Lab Franchise, LLC (the “Company”),
which comprise the balance sheets as of December 31, 2020 and 2019, and the related statements of
operations, changes to member’s deficit, and cash flows for the years then ended, and the related notes
to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the
Company’s preparation and fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control. Accordingly, we express no such opinion. An
audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Stretch Lab Franchise, LLC as of December 31, 2020 and 2019, and the results of its
operations and its cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Emphasis of Matter
As discussed in Note 1 to the financial statements, the Company has extensive transactions and
relationships with its Member, Xponential Fitness LLC, and its related affiliates. Accordingly, the
accompanying financial statements may not be indicative of the results of operations that would have
been achieved if the Company had operated without such affiliations. Our opinion is not modified with
respect to this matter.
April 10, 2021
‐ 2 ‐
Balance Sheets
December 31,
2020 2019
Assets
Current Assets:
Cash, cash equivalents and restricted cash $ 624,137 $ 398,248
Accounts receivable, net 171,166 590,621
Inventories 424,240 371,946
Prepaid expenses and other current assets 42,972 247,023
Note receivable from franchisee 35,816 —
Deferred costs, current portion 458,917 305,546
Related party receivable (Note 6) 132,717 65,369
Total current assets 1,889,965 1,978,753
Property and equipment, net 6,397 18,786
Goodwill 356,000 356,000
Intangible assets, net 441,710 470,148
Deferred costs, net of current portion 6,035,120 5,865,145
Note receivable from franchisee, net of current portion 91,188 —
Other assets 150,000 50,000
Total assets $ 8,970,380 $ 8,738,832
Liabilities and Member’s Deficit
Current Liabilities
Accounts payable $ 778,754 $ 1,070,251
Accrued expenses 2,462,975 3,316,886
Deferred revenue, current portion 1,663,779 1,159,213
Other current liabilities 282,970 264,920
Related party payable (Note 6) 403,735 2,329,738
Total current liabilities 5,592,213 8,141,008
Deferred revenue, net of current portion 10,002,321 9,315,409
Contingent consideration from acquisition — 1,684,779
Total liabilities 15,594,534 19,141,196
Commitments and contingencies (Note 7)
Member’s deficit (6,624,154 ) (10,402,364 )
Total liabilities and member’s deficit $ 8,970,380 $ 8,738,832
See accompanying notes to financial statements.
3
Statements of Operations
Year Ended December 31,

2020 2019
Revenue:
Franchise revenue $ 2,999,290 $ 2,406,004
Equipment revenue 2,425,170 3,763,238
Merchandise revenue 954,731 1,124,416
Franchise marketing fund revenue 489,848 290,486
Other service revenue 417,141 276,976
Total revenue, net 7,286,180 7,861,120
Operating costs and expenses:
Costs of product revenue 2,162,113 2,927,435
Costs of franchise and service revenue 779,201 525,085
Selling, general and administrative expenses 3,183,558 5,222,545
Depreciation and amortization 81,164 65,489
Marketing fund expense 489,848 290,486
Change in fair value of contingent consideration from acquisition — 3,519,511
Total operating costs and expenses 6,695,884 12,550,551
Operating income (loss) 590,296 (4,689,431 )
Interest expense 294,721 412,725
Loss before income taxes 295,575 (5,102,156 )
Income taxes 17,365 1,810
Net income (loss) $ 278,210 $ (5,103,966 )
4
Statements of Changes to Member’s Deficit
Total
Member Accumulated Member’s
Contribution Deficit Deficit
Balance at January 1, 2019 $ 685,000 $ (5,983,398 ) $ (5,298,398 )
Net loss — (5,103,966 ) (5,103,966 )
Balance at December 31, 2019 685,000 (11,087,364 ) (10,402,364 )
Member contribution (Note 6) 3,500,000 — 3,500,000
Net income — 278,210 278,210
Balance at December 31, 2020 $ 4,185,000 $ (10,809,154 ) $ (6,624,154 )
5
Statements of Cash Flows

2020 2019
Net income (loss) $ 278,210 $ (5,103,966 )
Adjustments to reconcile net income (loss) to net cash provided by operating
activities:
Change in fair value of contingent consideration from acquisition — 3,519,511
Bad debt expense 127,504 —
Non-cash interest expense 294,564 394,530
Changes in assets and liabilities:
Accounts receivable 291,951 (529,506 )
Inventories (52,294 ) (233,510 )
Prepaid expenses and other current assets 19,051 (22,947 )
Notes receivable — 205,744
Deferred costs (323,346 ) (2,814,651 )
Other assets (100,000 ) (50,000 )
Accounts payable (291,497 ) 694,173
Accrued expenses (83,254 ) 193,388
Accrued related-party interest — (10,644 )
Other current liabilities 18,050 (127,725 )
Deferred revenue 1,191,478 4,393,688
Net cash provided by operating activities 1,451,581 573,574
Cash flows from investing activities:
Proceeds from sale of company-owned studios 57,996 332,000
Purchase of company-owned studios — (532,000 )
Purchases of property and equipment — (6,362 )
Purchases of intangible assets (40,337 ) (25,328 )
Net cash provided by (used in) investing activities 17,659 (231,690 )
Cash flows from financing activities:
Payment of contingent consideration (2,750,000 ) (1,155,500 )
Payments on loans from related party — (275,548 )
Receipts from member, net 1,540,737 483,490
Advances to affiliates, net (34,088 ) (116,600 )
Net cash used in financing activities (1,243,351 ) (1,064,158 )
Increase (decrease) in cash, cash equivalents and restricted cash 225,889 (722,274 )
Cash, cash equivalents and restricted cash, beginning of year 398,248 1,120,522
Cash, cash equivalents and restricted cash, end of year $ 624,137 $ 398,248
Supplemental cash flow information:
Interest paid $ 156 $ 28,839
Income taxes paid $ 17,365 $ 1,810
Noncash investing activity:
Receivable recorded for sale of company-owned studios $ — $ 200,000
6
Notes to Financial Statements
Note 1 – Nature of Business and Operations

Stretch Lab Franchise, LLC (the “Company”), a Delaware limited liability company (LLC), was formed on
October 3, 2017. The sole member of the Company is Xponential Fitness LLC, a Delaware LLC (the “Member”),
with a portfolio of eight boutique fitness brands, including the Company. The Company was formed for the purpose
of holding the net assets related to the franchise operations of the “Stretch Lab” concept, including the franchise
operations.
The Company sells franchises under the name “Stretch Lab.” The Stretch Lab concept is an exercise facility where
club members have access to open spaces and classes that concentrate on stretching. As of December 31, 2020, the
Company has sold the rights to develop 291 franchise studios, of which 99 were operating.
The Company’s operating agreement designates one class of membership interest, of which the Member owns one
hundred percent of the interest.
Basis of presentation – The Company's financial statements have been prepared in accordance with accounting
principles generally accepted in the United States (“US GAAP”).
The accompanying financial statements are prepared in accordance with generally accepted accounting principles
applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the
normal course of business. The Company has extensive transactions and relationships with its Member and its related
affiliates. Accordingly, the accompanying financial statements may not be indicative of the results of operations that
would have been achieved if the Company had operated without such affiliations. The Member is responsible for
managing and overseeing the day-to-day operations of the Company. The Member allocates expenses to the Company
based on shared services and sweeps cash from and to the Company as needed. The Company relies on resources from
the Member to support operations and the Member has committed to continue to provide financial support to the
Company for the Company’s franchising operations for at least the next twelve months from the date of issuance of
the Company’s financial statements.
Use of estimates – The preparation of the financial statements in conformity with US GAAP requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities as of the date of the financial statements. Actual results could differ from these
estimates under different assumptions or conditions.
Note 2 – Summary of Significant Accounting Policies

Cash, cash equivalents and restricted cash – The Company considers all highly liquid investments with an
original maturity of 90 days or less to be cash equivalents.
The Company has marketing fund restricted cash, which can only be used for activities that promote the Company’s
brand. There was no restricted cash at December 31, 2020 or 2019.
Concentration of credit risk – Financial instruments which potentially subject the Company to concentrations of
credit risk consist primarily of cash and accounts receivable. The Company maintains its cash with high-credit
quality financial institutions. At December 31, 2020 and 2019, the Company has cash and cash equivalents that total
approximately $374,000 and $277,000, respectively, on deposit with high-credit quality financial institutions that
exceed federally insured limits. The Company has not experienced any loss as a result of these or previous similar
deposits. In addition, the Company closely monitors the extension of credit to its franchisees while maintaining
allowances for potential credit losses.
Accounts receivable and allowance for doubtful accounts – Accounts receivable primarily consist of amounts
due from franchisees and vendors. These receivables primarily relate to royalties, advertising contributions,
equipment and product sales, training, vendor commissions and other miscellaneous charges. Receivables are
unsecured; however, the franchise agreements provide the Company the right to withdraw funds from the
7
franchisee’s bank account or to terminate the franchise for nonpayment. On a periodic basis, the Company evaluates
its accounts receivable balance and establishes an allowance for doubtful accounts, based on a number of factors,
including evidence of the customer’s ability to comply with credit terms, economic conditions and historical
receivables. Account balances are written off against the allowance after all means of collection have been
exhausted and the potential for recovery is considered remote. At December 31, 2020 and 2019, the allowance for
doubtful accounts was $75,000 and $0, respectively.
Inventories – Inventories are comprised of finished goods including equipment and branded merchandise primarily
held for sale to franchisees. Cost is determined using the first-in-first-out method. Management analyzes obsolete,
slow-moving and excess merchandise to determine adjustments that may be required to reduce the carrying value of
such inventory to the lower of cost or net realizable value. Write-down of obsolete or slow-moving and excess
inventory charges are included in costs of product revenue in the statements of operations.
Property and equipment, net – Property and equipment are carried at cost less accumulated depreciation.
Depreciation is recognized on a straight-line method based on the estimated useful life of the assets.
The cost and accumulated depreciation of assets sold or retired are removed from the accounts and any gain or loss
is included in the results of operations during the period of sale or disposal. Costs for repairs and maintenance are
expensed as incurred. Repair and maintenance costs for the years ended December 31, 2020 and 2019 were
insignificant.
Goodwill and intangible assets – Intangible assets consist of goodwill and identifiable intangible assets.
Goodwill – The Company tests for impairment of goodwill annually or sooner whenever events or circumstances
indicate that goodwill might be impaired. The annual impairment test is performed as of the first day of the
Company’s fourth quarter. The annual goodwill test begins with a qualitative assessment, where qualitative factors
and their impact on critical inputs are assessed to determine whether it is more likely than not that the fair value of a
reporting unit is less than its carrying value. If the Company determines that a reporting unit has an indication of
impairment based on the qualitative assessment, it is required to perform a quantitative assessment. The Company
generally determines the estimated fair value using a discounted cash flow approach, giving consideration to the
market valuation approach. If the carrying value exceeds the estimate of fair value a write-down is recorded. The
Company calculates impairment as the excess of the carrying value of goodwill over the estimated fair value. Based
on the test results, no impairment was recorded for the years ended December 31, 2020 or 2019.
Definite-lived intangible assets – Intangible assets consisting of trademarks, franchise agreements and web design
and domain are amortized using the straight-line method over the estimated remaining economic lives. Deferred
video production costs are amortized on an accelerated basis. Amortization expense related to intangible assets is
included in depreciation and amortization expense. The recoverability of the carrying values of all intangible assets
with finite lives is evaluated when events or changes in circumstances indicate an asset’s value may be impaired.
Impairment testing is based on a review of forecasted undiscounted operating cash flows. If such analysis indicates
that the carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value,
which is determined based on discounted future cash flows, through a charge to the statement of operations. No
definite-lived intangible asset impairment was recorded for the years ended December 31, 2020 or 2019.
Revenue recognition –The Company’s contracts with customers consist of franchise agreements with franchisees.
The Company also enters into agreements to sell merchandise and equipment, training and on-demand video
services. The Company’s revenues primarily consist of franchise license revenues, other franchise related revenues
including equipment and merchandise sales and training revenue. In addition, the Company earns on-demand
revenue and other revenue.
8
Each of the Company’s primary sources of revenue and their respective revenue policies are discussed further
below.
Franchise revenue -
The Company enters into franchise agreements for each franchised studio. The Company’s performance obligation
under the franchise license is granting certain rights to access the Company’s intellectual property; all other services
the Company provides under the franchise agreement are highly interrelated, not distinct within the contract, and
therefore accounted for as a single performance obligation, which is satisfied over the term of each franchise
agreement. Those services include initial development, operational training, preopening support and access to the
Company’s technology throughout the franchise term. Fees generated related to the franchise license include
development fees, royalty fees, marketing fees, technology fees and transfer fees, which are discussed further below.
Variable fees are not estimated at contract inception, and are recognized as revenue when invoiced, which occurs
monthly. The Company has concluded that its agreements do not contain any financing components.
Franchise development fee revenue – The Company’s franchise agreements typically operate under ten-year terms
with the option to renew for up to two additional five-year successor terms. The Company determined the renewal
options are neither qualitatively nor quantitatively material and do not represent a material right. Initial franchise
fees are non-refundable and are typically collected upon signing of the franchise agreement. Initial franchise fees are
recorded as deferred revenue when received and are recognized on a straight-line basis over the franchise life, which
the Company has determined to be ten years, as the Company fulfills its promise to grant the franchisee the rights to
access and benefit from the Company’s intellectual property and to support and maintain the intellectual property.
The Company may enter into an area development agreement with certain franchisees. Area development
agreements are for a territory in which a developer has agreed to develop and operate a certain number of franchise
locations over a stipulated period of time. The related territory is unavailable to any other party and is no longer
marketed to future franchisees by the Company. Depending on the number of studios purchased under franchise
agreements or area development agreements, the initial franchise fee ranges from $60,000 (single studio) to
$350,000 (ten studios) and is paid to the Company when a franchisee signs the area development agreement. Area
development fees are initially recorded as deferred revenue. The development fees are allocated to the number of
studios purchased under the development agreement. The revenue is recognized on a straight-line basis over the
franchise life for each studio under the development agreement. Development fees and franchise fees are generally
recognized as revenue upon the termination of the development agreement with the franchisee.
Franchise royalty fee revenue – Royalty revenue represents royalties earned from each of the franchised studios in
accordance with the franchise disclosure document and the franchise agreement for use of the brands’ names,
processes and procedures. The royalty rate in the franchise agreement is typically 7% of the gross sales of each
location operated by each franchisee. Royalties are billed on a monthly basis. The royalties are entirely related to the
Company’s performance obligation under the franchise agreement and are billed and recognized as franchisee sales
occur.
Technology fees – The Company may provide access to third-party or other proprietary technology solutions to the
franchisees for a fee. The technology solution may include various software licenses for statistical tracking,
scheduling, allowing club members to record their personal workout statistics, music and technology support. The
Company bills and recognizes the technology fee as earned each month as the technology solution service is
performed.
Transfer fees – Transfer fees are paid to the Company when one franchisee transfers a franchise agreement to a
different franchisee. Transfer fees are recognized as revenue on a straight-line basis over the term of the new or
assumed franchise agreement, unless the original franchise agreement for an existing studio is terminated, in which
case the transfer fee is recognized immediately.
Training revenue – The Company provides coach training services either through direct training of the coaches who
are hired by franchisees or by providing the materials and curriculum directly to the franchisees who utilize the
materials to train their hired coaches. Direct training fees are recognized over time as training is provided. Training
fees for materials and curriculum are recognized at the point in time of delivery of the materials.
9
Franchise marketing fund revenue– Franchisees are required to pay marketing fees of 2% of their gross sales. The
marketing fees are collected by the Company on a monthly basis and are to be used for the advertising, marketing,
market research, product development, public relations programs and materials deemed appropriate to benefit
brands. The Company’s promise to provide the marketing services funded through the marketing fund is considered
a component of the Company’s performance obligation to grant the franchise license. The Company bills and
recognizes marketing fund fees as revenue each month as gross sales occur.
Equipment and merchandise revenue -

The following revenues are generated as a result of transactions with or related to the Company’s franchisees.
Equipment revenue – The Company sells authorized equipment to franchisees to be used in the franchised studios.
Certain franchisees may prepay for equipment, and in that circumstance, the revenue is deferred until delivery.
Equipment revenue is recognized when control of the equipment is transferred to the franchisee, which is at the
point in time delivery and installation of the equipment at the studio is complete.
Merchandise revenue –The Company sells branded and non-branded merchandise to franchisees for retail sales to
customers at studios. For branded merchandise sales, the performance obligation is satisfied at the point in time of
shipment of the ordered branded merchandise to the franchisee. For such branded merchandise sales, the Company
is the principal in the transaction as it controls the merchandise prior to it being delivered to the franchisee. The
Company records branded merchandise revenue and related costs upon shipment on a gross basis. Customers have
the right to return and/or receive credit for defective merchandise. Returns and credit for defective merchandise were
not significant for the years ended December 31, 2020 and 2019.
For certain non-branded merchandise sales, the Company earns a commission to facilitate the transaction between
the franchisee and the supplier. For such non-branded merchandise sales, the Company is the agent in the
transaction, facilitating the transaction between the franchisee and the supplier, as the Company does not obtain
control of the non-branded merchandise during the order fulfillment process. The Company records non-branded
merchandise commissions revenue at the time of shipment.
Other revenue -
On-demand revenue – The Company grants a subscriber access to an online hosted platform, which contains a library
of web-based classes that is continually updated, through monthly subscription packages. Revenue is recognized over
time on a straight-line basis over the subscription period.
Additionally, the Company earns commission income from certain of its franchisees’ use of certain preferred
vendors. In these arrangements, the Company is the agent as it is not primarily responsible for fulfilling the orders.
Commissions are earned and recognized at the point in time the vendor ships the product to franchisees.
Sales taxes, value added taxes and other taxes that are collected in connection with revenue transactions are withheld
and remitted to the respective taxing authorities. As such, these taxes are excluded from revenue. The Company
elected to account for shipping and handling as activities to fulfill the promise to transfer the good. Therefore,
shipping and handling fees that are billed to franchisees are recognized in revenue and the associated shipping and
handling costs are recognized in cost of product sold as soon as control of the goods transfers to the franchisee.
Credit Losses – The Company’s accounts and notes receivable are recorded at net realizable value, which includes
an appropriate allowance for estimated credit losses. The estimate of credit losses is based upon historical bad debts,
current receivable balances, age of receivable balances, the customer’s financial condition and current economic
trends, all of which are subject to change. Actual uncollected amounts have historically been consistent with the
Company’s expectations. The Company’s payment terms on its receivables from franchisees are generally 30 days.
Shipping and handling fees – Shipping and handling fees billed to customers are recorded in merchandise and
equipment revenues. The costs associated with shipping goods to customers are included in costs of product revenue
in the accompanying statements of operations.
10
Costs of franchise and service revenue – Costs of franchise and service revenue consists of commissions related to
the signing of franchise agreements, travel and personnel expenses related to the on-site training provided to the
franchisees, and expenses related to the purchase of the technology packages and the related monthly fees. Costs of
franchise and service revenue excludes depreciation and amortization.
Costs of product revenue – Costs of product revenue consists of cost of equipment and merchandise and related
freight charges. Costs of product revenue excludes depreciation and amortization.
Advertising costs – Advertising costs are expensed as incurred. Advertising costs are included in selling, general
and administrative expense. For the years ended December 31, 2020 and 2019, the Company had approximately
$380,000 and $542,000, respectively, of advertising costs, including amounts spent in excess of marketing fund
revenue.
Selling, general and administrative expenses – The Company’s selling, general and administrative (“SG&A”)
expenses consist of sales and marketing expenses, employee-related expenses and Member-allocated SG&A
expenses based on shared services primarily consisting of payroll, professional and legal fees, occupancy expenses,
management fees, travel expenses, and convention expenses. Allocations are generally divided evenly across all
franchisors owned by the Member.
Marketing fund expenses – Marketing fund expenses are recognized as incurred, and any marketing fund
expenditures in excess of marketing fund revenue are reclassified as SG&A expenses in the accompanying
statements of operations.
Income taxes – As a single member LLC, the Company is considered a disregarded entity and the results of its
operations are filed with the Member’s federal and state income tax returns. As such, the Company itself is typically
not subject to an income tax liability as the taxable income or loss of the Company is passed through to the Member.
Therefore, no liability for federal income taxes has been included in the financial statements. The Company
accounts for uncertain tax positions in accordance with Accounting Standards Codification (“ASC”) 740. ASC
Topic 740 prescribes a recognition threshold and measurement process for accounting for uncertain tax positions
and also provides guidance on various related matters such as derecognition, interest, penalties, and required
disclosures. The Company does not have any uncertain tax positions. However, the Company is required to pay an
annual gross receipts fee and tax for its operations in California.
Comprehensive income – The Company does not have any components of other comprehensive income recorded
within its financial statements and therefore does not separately present a statement of comprehensive income in its
financial statements.
Recently adopted accounting pronouncements – On January 1, 2020, the Company adopted Accounting
Standards Update (“ASU”) No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).” This ASU simplifies the
subsequent measurement of goodwill. The Financial Accounting Standards Board (“FASB”) eliminated the Step 2
analysis from the goodwill impairment test which is meant to reduce the cost and complexity of evaluating goodwill
for impairment. The adoption of this new standard did not have a material impact on the Company’s financial
statements or disclosures.
Recently issued accounting pronouncements –

Accounting for leases – In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This new
topic, which supersedes Topic 840, “Leases,” applies to all entities that enter into a contract that is or contains a
lease, with some specified scope exemptions. This new standard requires lessees to evaluate whether a lease is a
finance lease using criteria similar to those a lessee uses under current accounting guidance to determine whether it
has a capital lease. Leases that do not meet the criteria for classification as finance leases by a lessee are to be
classified as operating leases.
Under the new standard, for each lease classified as an operating lease, lessees are required to recognize on the
balance sheet: (i) a right-of-use (“ROU”) asset representing the right to use the underlying asset for the lease term
11
and (ii) a lease liability for the obligation to make lease payments over the lease term. Lessees can make an
accounting policy election, by class of underlying asset, to not recognize ROU assets and lease liabilities for leases
with a lease term of 12 months or less as long as the leases do not include options to purchase the underlying assets
that the lessee is reasonably certain to exercise. This standard also requires an entity to disclose key information
(both qualitative and quantitative) about the entity’s leasing arrangements. Upon adoption, entities are required to
recognize and measure leases at the beginning of the earliest period presented using a modified retrospective
approach, which includes a number of optional practical expedients that entities may elect to apply. Management is
currently evaluating the impact of this new guidance on its financial statements.
In June 2020, the FASB issued ASU No. 2020-05, “Revenue from Contracts with Customers (Topic 606) and
Leases (Topic 842)”, which defers the effective date of ASU No. 2016-02 to fiscal years beginning after December
15, 2021, and interim periods within fiscal years beginning after December 15, 2022.
Fair value measurements – ASC 820, Fair Value Measurements and Disclosures, applies to all financial assets and
financial liabilities that are measured and reported on a fair value basis and requires disclosure that establishes a
framework for measuring fair value and expands disclosure about fair value measurements. ASC 820 establishes a
valuation hierarchy for disclosures of the inputs to valuations used to measure fair value.
This hierarchy prioritizes the inputs into three broad levels as follows:
Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be
accessed at the measurement date.
Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for
identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are
observable for the asset or liability (i.e., interest rates and yield curves), and inputs that are derived principally
from or corroborated by observable market data by correlation or other means (market corroborated inputs).
Level 3 – Unobservable inputs that reflect assumptions about what market participants would use in pricing
the asset or liability. These inputs would be based on the best information available, including the Company’s
own data.
The Company’s financial instruments include cash, restricted cash, accounts receivable, notes receivable, accounts
payable and accrued expenses. The carrying amounts of these financial instruments are categorized within Level 1
of the fair value hierarchy due to the short-term nature of these balances and approximate their fair value due to their
short maturities.
Note 3 – Contract Liabilities and Costs from Contracts with Customers

Contract Liabilities – Contract liabilities consist of deferred revenue resulting from franchise fees and
development fees paid by franchisees, which are recognized over time on a straight-line basis over the franchise
agreement term. Also included in the deferred revenue balance are nonrefundable prepayments for merchandise and
equipment, as well as revenues for training for which the associated products or services have not yet been provided
to the customer. The Company classifies these contract liabilities as either current deferred revenue or non-current
deferred revenue in the balance sheet based on the anticipated timing of delivery. The following table reflects the
change in contract liabilities for the years ended December 31, 2020 and 2019:
12
Franchise
Development Equipment and
Fees Other Total
Balance at January 1, 2019 $ 4,888,044 $ 1,192,890 $ 6,080,934
Revenue recognized that was included in deferred revenue at the
beginning of the year (256,657 ) (1,192,890 ) (1,449,547 )
Increase, excluding amounts recognized as revenue during the year 5,145,950 697,285 5,843,235
Balance at December 31, 2019 9,777,337 697,285 10,474,622
beginning of the year (739,413 ) (697,285 ) (1,436,698 )
Balance at December 31, 2020 $ 10,701,096 $ 965,004 $ 11,666,100
The following table illustrates estimated revenue expected to be recognized in the future related to performance
obligations that were unsatisfied (or partially unsatisfied) as of December 31, 2020. The expected future recognition
period for deferred franchise development fees related to unopened studios is based on management’s best estimate
of the beginning of the franchise license term for those studios. The Company elected to not disclose sales and
usage-based royalties, marketing fees and any other variable consideration recognized on an “as invoiced” basis.
Franchise
Development Equipment
Contract liabilities to be recognized in revenue in Fees and Other Total
2021 $ 698,776 $ 965,004 $ 1,663,780
2022 787,510 - 787,510
2023 943,312 - 943,312
2024 1,053,690 - 1,053,690
2025 1,094,690 - 1,094,690
Thereafter 6,123,118 - 6,123,118
$ 10,701,096 $ 965,004 $ 11,666,100
The following table reflects the components of deferred revenue:
December 31,
2020 2019
Franchise and area development fees $ 10,701,096 $ 9,777,337
Equipment and other 965,004 697,285
Total deferred revenue 11,666,100 10,474,622
Non-current portion of deferred revenue 10,002,321 9,315,409
Current portion of deferred revenue $ 1,663,779 $ 1,159,213
Contract Costs – Contract costs consist of deferred commissions resulting from franchise and area development
sales by third-party and affiliate brokers or sales personnel. The total commission is deferred at the point of a
franchise sale. The commissions are evenly split among the number of studios purchased under the development
agreement and begin to be amortized when a subsequent franchise agreement is executed. The commissions are
recognized on a straight-line basis over the initial ten-year franchise agreement term to align with the recognition of
the franchise agreement or area development fees. The Company classifies these deferred contract costs as either
current deferred costs or non-current deferred costs in the balance sheet. The associated expense is classified within
costs of franchise and service revenue in the statements of operations. At December 31, 2020 and 2019, there were
approximately $424,000 and $284,000 of current deferred costs and approximately $6,035,000 and $5,865,000 in
non-current deferred costs, respectively. The Company recognized approximately $459,000 and $280,000 in
franchise sales commissions expense for the years ended December 31, 2020 and 2019, respectively. During the
years ended December 31, 2020 and 2019, the Company recorded $0 and $1,555,000, respectively, of deferred
13
commission costs paid to affiliates of the Member, which are being recognized over the initial ten-year franchise
agreement term.
Note 4 – Property and Equipment

Property and equipment consisted of the following:
Estimated December 31,

Useful Life 2020 2019
Computers 3 years $ 26,983 $ 26,983
Less: accumulated depreciation (20,586 ) (8,197 )
Total property and equipment, net $ 6,397 $ 18,786
Depreciation expense for the years ended December 31, 2020 and 2019 was approximately $12,000 and $5,000,
respectively.
Note 5 – Goodwill and Intangible Assets

Goodwill represents the excess of cost over the fair value of identifiable net assets acquired related to the original
purchase of the “Stretch Lab” concept. Goodwill is not amortized but is tested annually for impairment or more
frequently if indicators of potential impairment exist. As of December 31, 2020, and 2019, there was no change in
previously reported goodwill and no impairment has been identified.
Definite-lived intangible assets consisted of the following:
December 31, 2020 December 31, 2019

Amortization
Period Gross Accumulated Net Gross Accumulated Net
(Years) Amount Amortization Amount Amount Amortization Amount
Trademarks 10 $ 323,328 $ (96,388 ) $ 226,940 $ 323,328 $ (64,055 ) $ 259,273
Franchise agreements 10 200,000 (61,667 ) 138,333 200,000 (41,667 ) 158,333
Web design and domain 10 65,000 (18,958 ) 46,042 65,000 (12,458 ) 52,542
Deferred video production
costs 3 40,337 (9,942 ) 30,395 — — —
Total $ 628,665 $ (186,955 ) $ 441,710 $ 588,328 $ (118,180 ) $ 470,148
Amortization expense for the years ended December 31, 2020 and 2019 was approximately $69,000 and $60,000,
respectively.
The anticipated amortization expense related to intangible assets is as follows:
Year ending December 31,

2021 $ 73,956
2022 68,682
2023 64,256
2024 58,833
2025 58,833
Thereafter 117,150
Total $ 441,710
Note 6 – Related Party Transactions

Significant related party transactions consist of allocations of expenses from the Member, borrowings from, and
14
excess cash transfers to the Member and other related parties under common control of the Member or the
Member’s parent. In addition, the Member has a credit facility that requires collateral. All obligations under the
Member’s credit facility are secured by substantially all of the tangible and intangible assets of the Company.
Related party balances are as follows:
December 31,
2020 2019
Related party receivables:
Row House Franchise, LLC $ 117,366 $ 57,575
Xponential Fitness Brands International, LLC 7,794 7,794
Stride Franchise, LLC 3,966 —
CycleBar Holdco, LLC 3,591 —
Total related party receivables $ 132,717 $ 65,369
Related party payables:
Member $ 77,785 $ 2,037,049
Club Pilates Franchise, LLC 269,095 259,774
AKT Franchise, LLC 11,032 14,474
Yoga Six Franchise, LLC 22,797 16,000
PB Franchising, LLC 23,026 2,441
Total related party payables $ 403,735 $ 2,329,738
During the year ended December 31, 2020, the Member made a non-cash contribution of $3,500,000 to the
Company in satisfaction of a portion of the Company’s payable to the Member.
The Chief Executive Officer of the Company is the sole owner of Intensive Capital Inc. (“ICI”). ICI provides
unsecured loans to the Company, which loans the funds to the franchisees to purchase a franchise territory or to
setup a studio. At December 31, 2018, the Company had recorded notes receivable of approximately $206,000 and
notes payable of approximately $286,000 related to these loans. During the year ended December 31, 2019, the
notes receivable were collected from the franchisees and the notes payable were repaid to ICI. There are no notes
receivable or payable related to ICI outstanding at December 31, 2020 or 2019. Each of the loans accrued interest at
15% per annum, with interest accruing beginning 30 days after issuance. During the year ended December 31, 2019,
the Company recorded interest expense to ICI of approximately $13,000. ICI also provides loans directly to
franchisees. During the years ended December 31, 2020 and 2019, the Company made interest payments on these
loans to ICI on behalf of the franchisees of approximately $0 and $17,000, respectively, which is included in SG&A
expense in the accompanying statements of operations.
Note 7 – Contingencies and Litigation

Litigation – The Company is subject to normal and routine litigation brought by former or current employees,
customers, franchisees, vendors, landlords or others. The Company intends to defend itself in any such matters. The
Company believes that the ultimate determination of liability in connection with legal claims pending against it, if
any, will not have a material adverse effect on its business, the annual results of operations, liquidity or financial
position; however, it is possible that the Company’s business, results of operations, liquidity, or financial condition
could be materially affected in a particular future reporting period by the unfavorable resolution of one or more
matters or contingencies during such period.
15
Contingent Consideration – In connection with the 2017 acquisition, the Company agreed to pay to the seller 20%
of operational or change of control distributions, until the date there is a change in control of the Company or a
liquidation. The Company determined the estimated fair value using a discounted cash flow approach, giving
consideration to the market valuation approach, which is a Level 3 measurement. Inputs used in the methodology
primarily included sales forecasts, projected future cash flows and discount rate commensurate with the risk
involved.
In September 2019, the Company entered into a settlement agreement with the Stretch Lab sellers to resolve
disputes related to the acquisition and related agreements and to settle all amounts due under the contingent
consideration. Under the terms of the settlement, the Company took ownership of four Stretch Lab studios owned by
the sellers, with a fair value of $532,000, and will make payments to the sellers aggregating $6,500,000. In
connection with the settlement, during the year ended December 31, 2019, the Company recorded additional
expense of approximately $3,520,000 in change in fair value of contingent consideration representing the liability
discounted at a rate of 8.5%, net of the previously recorded contingent consideration. At December 31, 2020, the
liability was $1,979,000 recorded as accrued expenses on the accompanying balances sheets. At December 31, 2019,
the liability was $2,750,000 recorded as accrued expenses and $1,685,000 as contingent consideration from
acquisitions, respectively, on the accompanying balance sheets. The Company made an initial payment of
$1,000,000 in September 2019, and the first quarterly payment of $687,500 in December 2019. Quarterly payments
of $687,500 will continue through September 2021. The Company recognized the studio assets acquired and related
liability under the settlement in September 2019. The studio assets were sold in September 2019 to third-party
franchisees. On the sale date, the Company recorded a $200,000 receivable from the buyers. On December 31, 2020,
the $127,004 balance of the receivable was converted to a note receivable, bearing interest at 10% per annum,
payable in monthly installments beginning July 2021 through December 2022.
Note 8 – Subsequent Events

The Company has evaluated subsequent events through April 10, 2021, which is the date its financial statements
were available to be issued.
16
Stretch Lab
Franchise, LLC
Financial Statements as of and for the Years Ended December 31, 2019 and 2018 and
Independent Auditors’ Report
Table of Contents
Independent Auditors’ Report 1

Balance Sheets 3
Statements of Operations 4
Statements of Changes to Member’s Deficit 5
Statements of Cash Flows 6
Notes to Financial Statements 7
i
INDEPENDENT AUDITORS’ REPORT
To the Board of Directors and Member of

Stretch Lab Franchise, LLC:
We have audited the accompanying financial statements of Stretch Lab Franchise, LLC (the
“Company”), which comprise the balance sheets as of December 31, 2019 and 2018, and
the related statements of operations, changes to member’s deficit, and cash flows for the
years then ended, and the related notes to the financial statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial
statements in accordance with accounting principles generally accepted in the United States
of America; this includes the design, implementation, and maintenance of internal control
relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our

audits. We conducted our audits in accordance with auditing standards generally accepted in
the United States of America. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Company’s internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide
a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of Stretch Lab Franchise, LLC as of December 31, 2019 and
2018, and the results of its operations and its cash flows for the years then ended in
accordance with accounting principles generally accepted in the United States of America.
Emphasis of Matters
As discussed in Note 7 to the financial statements, subsequent to December 31, 2019,

substantially all of the franchisees’ studios have temporarily closed in response to the
COVID-19 pandemic and the closures could have an unfavorable impact on the Company’s
results of operations, financial position and cash flows in 2020.
As discussed in Note 2 to the financial statements, in 2019, the Company adopted

Accounting Standard Codification No. 606, “Revenue from Contracts with Customers”
(ASC 606), using the full retrospective transition method.
As discussed in Note 1 to the financial statements, the Company has extensive transactions
and relationships with its Member, Xponential Fitness LLC, and its related affiliates.
Accordingly, the accompanying financial statements may not be indicative of the results of
operations that would have been achieved if the Company had operated without such
affiliations.
Our opinion is not modified with respect to these matters.
April 27, 2020
2
Balance Sheets
December 31,
2019 2018
Assets
Current Assets:
Cash, cash equivalents and restricted cash $ 398,248 $ 1,120,522
Accounts receivable 590,621 61,115
Inventories 371,946 138,436
Prepaid expenses and other current assets 247,023 24,076
Notes receivable (Note 5) — 205,744
Deferred commission costs, current portion 305,546 128,240
Related party receivable (Note 5) 65,369 5,578
Total current assets 1,978,753 1,683,711
Property and equipment, net 18,786 17,858
Goodwill 356,000 356,000
Intangible assets, net 470,148 504,875
Deferred commission costs, net of current portion 5,865,145 3,227,800
Other assets 50,000 —
Total assets $ 8,738,832 $ 5,790,244
Liabilities and Member’s Deficit
Current Liabilities
Accounts payable $ 1,070,251 $ 376,078
Accrued expenses 3,316,886 373,498
Deferred revenue, current portion 1,159,213 1,374,445
Notes payable (Note 5) — 286,192
Other current liabilities 264,920 392,645
Related party payable (Note 5) 2,329,738 1,903,057
Total current liabilities 8,141,008 4,705,915
Deferred revenue, net of current portion 9,315,409 4,706,489
Contingent consideration from acquisition 1,684,779 1,676,238
Total liabilities 19,141,196 11,088,642
Commitments and contingencies (Note 6) — —
Member’s deficit (10,402,364) (5,298,398)
Total liabilities and member’s deficit $ 8,738,832 $ 5,790,244
3
Statements of Operations

2019 2018
Revenue:
Franchise revenue $ 2,406,004 $ 214,796
Equipment revenue 3,763,238 304,204
Merchandise revenue 1,124,416 146,261
Franchise marketing fund revenue 290,486 8,574
Other service revenue 276,976 214,537
Total revenue, net 7,861,120 888,372
Operating costs and expenses:
Costs of product revenue 2,927,435 290,834
Costs of franchise and service revenue 525,085 78,843
Selling, general and administrative expenses 5,222,545 4,543,813
Marketing fund expense 290,486 8,574
Change in fair value of contingent consideration from acquisition 3,519,511 1,505,238
Acquisition and transaction expenses — 27,191
Total operating costs and expenses 12,550,551 6,515,714
Operating loss (4,689,431) (5,627,342)
Interest expense (412,725) (10,644)
Loss before income taxes (5,102,156) (5,637,986)
Income taxes 1,810 —
Net loss $ (5,103,966) $ (5,637,986)
4
Statements of Changes to Member’s Deficit
Total
Member Accumulated Member’s
Contribution Deficit Equity (Deficit)
Balance at January 1, 2018 $ 685,000 $ (345,412) $ 339,588
Net loss — (5,637,986) (5,637,986)
Balance at December 31, 2018 685,000 (5,983,398) (5,298,398)
Net loss — (5,103,966) (5,103,966)
Balance at December 31, 2019 $ 685,000 $ (11,087,364) $ (10,402,364)
5
Statements of Cash Flows

2019 2018
Net loss $ (5,103,966) $ (5,637,986)
Adjustments to reconcile net loss to net cash provided by (used in) operating
activities:
Change in fair value of contingent consideration from acquisition 3,519,511 1,505,238
Non-cash interest expense 394,530 10,644
Changes in assets and liabilities:
Accounts receivable (529,506) (61,115)
Inventories (233,510) (138,436)
Prepaid expenses and other current assets (22,947) (12,326)
Notes receivable 205,744 (205,744)
Deferred costs (2,814,651) (3,356,040)
Other assets (50,000) 32,500
Accounts payable 694,173 357,256
Accrued expenses 193,388 373,498
Accrued related-party interest (10,644) —
Other current liabilities (127,725) 392,645
Deferred revenue 4,393,688 6,080,934
Net cash provided by (used in) operating activities 573,574 (597,711)
Cash flows from investing activities:
Proceeds from sale of company-owned studios 332,000 —
Purchase of company-owned studios (532,000) —
Purchases of property and equipment (6,362) (20,621)
Purchases of web design and domain (25,328) (65,000)
Net cash provided by (used in) investing activities (231,690) (85,621)
Cash flows from financing activities:
Payment of contingent consideration (1,155,500) —
Loans received from related party — 275,548
Payments on loans from related party (275,548) —
Receipts from member, net 483,490 1,205,993
Receipts from (advances to) affiliates, net (116,600) 7,313
Net cash provided by (used in) financing activities (1,064,158) 1,488,854
Increase (decrease) in cash, cash equivalents and restricted cash (722,274) 805,522
Cash, cash equivalents and restricted cash, beginning of year 1,120,522 315,000
Cash, cash equivalents and restricted cash, end of year $ 398,248 $ 1,120,522
Supplemental cash flow information:
Interest paid $ 28,839 $ —
Noncash investing activity:
Receivable recorded for sale of company-owned studios $ 200,000 $ —
6
Note 1 – Nature of Business and Operations

Stretch Lab Franchise, LLC (the “Company”), a Delaware limited liability company (LLC), was formed on
October 3, 2017. The sole member of the Company is Xponential Fitness LLC, a Delaware LLC (the “Member”),
with a portfolio of eight boutique fitness brands, including the Company. The Company was formed for the purpose
of holding the net assets related to the franchise operations of the “Stretch Lab” concept, including the franchise
operations.
The Company sells franchises under the name “Stretch Lab.” The Stretch Lab concept is an exercise facility where
club members have access to open spaces and classes that concentrate on stretching. As of December 31, 2019, the
Company has sold the rights to develop 260 franchise studios, of which 64 were operating.
The Member is responsible for managing and overseeing the day-to-day operations of the Company. The Member
allocates expenses to the Company based on shared services. Net loss and all items of the Company’s income, gain,
loss, deduction, or credit are allocated to the Member. The Company relies on resources from the Member to support
operations and the Member has committed to continue to provide financial support to the Company for the
Company’s franchising operations as necessary.
The Company’s operating agreement designates one class of membership interest, of which the Member owns one
hundred percent of the interest.
Basis of presentation – The Company's financial statements have been prepared in accordance with accounting
principles generally accepted in the United States (“US GAAP”).
The Company has numerous transactions with its Member and affiliates. Accordingly, the financial statements may
not necessarily be indicative of the conditions that would have existed or the results of operations that would have
occurred if the Company had operated without such affiliations. The significant related party transactions consist of
allocations of expenses from the Member, borrowings from, and excess cash transfers to the Member and other
related parties under common control of the Member or the Member’s parent.
The financial statements have been prepared on a going concern basis. The Company relies on resources from the
Member to support its operations. The Member has committed to continue to provide financial support to the
Company for the Company’s franchising operations as necessary. Based on management’s projections, the Member
may not meet the leverage ratio covenant requirement of its financing facility during the period twelve months from
the issuance date of these financial statements, which would represent an event raising substantial doubt regarding
the Company’s ability to continue as a going concern. However, the Member plans to amend its debt financial
covenant or obtain an equity contribution sufficient to cure any anticipated covenant violation. The Member has
obtained a commitment from an investor to provide an equity contribution up to $10 million, which is allowed for in
the debt agreement. The Member and the Company believe that these actions alleviate this matter to allow the
Member to provide the financial support to the Company as necessary in order for the Company to continue as a
going concern through twelve months from the issuance date of these financial statements.
Use of estimates – The preparation of the financial statements in conformity with US GAAP requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities as of the date of the financial statements. Actual results could differ from these
estimates under different assumptions or conditions.
Note 2 – Summary of Significant Accounting Policies

Cash, cash equivalents and restricted cash – The Company considers all highly liquid investments with an
original maturity of 90 days or less to be cash equivalents.
The Company has marketing fund restricted cash, which can only be used for activities that promote the Company’s
brand. There was no restricted cash at December 31, 2019 or 2018.
7
Concentration of credit risk – Financial instruments which potentially subject the Company to concentrations of
credit risk consist primarily of cash and accounts receivable. The Company maintains its cash with high-credit
quality financial institutions. At December 31, 2019 and 2018, the Company has cash and cash equivalents that total
approximately $277,000 and $582,000, respectively, on deposit with high-credit quality financial institutions that
exceed federally insured limits. The Company has not experienced any loss as a result of these or previous similar
deposits. In addition, the Company closely monitors the extension of credit to its franchisees while maintaining
allowances for potential credit losses.
Accounts receivable and allowance for doubtful accounts – Accounts receivable primarily consist of amounts
due from franchisees and vendors. These receivables primarily relate to royalties, advertising contributions,
equipment and product sales, training, vendor commissions and other miscellaneous charges. Receivables are
unsecured; however, the franchise agreements provide the Company the right to withdraw funds from the
franchisee’s bank account or to terminate the franchise for nonpayment. On a periodic basis, the Company evaluates
its accounts receivable balance and establishes an allowance for doubtful accounts, based on a number of factors,
including evidence of the customer’s ability to comply with credit terms, economic conditions and historical
receivables. Account balances are written off against the allowance after all means of collection have been
exhausted and the potential for recovery is considered remote. At December 31, 2019 and 2018, there was no
allowance for doubtful accounts.
Inventories – Inventories are comprised of finished goods including equipment and branded merchandise primarily
held for sale to franchisees. Cost is determined using the first-in-first-out method. Management analyzes obsolete,
slow-moving and excess merchandise to determine adjustments that may be required to reduce the carrying value of
such inventory to the lower of cost or net realizable value. Write-down of obsolete or slow-moving and excess
inventory charges are included in costs of product revenue in the statements of operations.
Property and equipment, net – Property and equipment are carried at cost less accumulated depreciation.
Depreciation is recognized on a straight-line method based on the estimated useful life of the assets.
The cost and accumulated depreciation of assets sold or retired are removed from the accounts and any gain or loss
is included in the results of operations during the period of sale or disposal. Costs for repairs and maintenance are
expensed as incurred. Repair and maintenance costs for the years ended December 31, 2019 and 2018 were
insignificant.
Goodwill and intangible assets – Intangible assets consist of goodwill and identifiable intangible assets, which
consist of trademarks and franchise agreements.
Goodwill – The Company tests for impairment of goodwill annually or sooner whenever events or circumstances
indicate that goodwill might be impaired. The annual impairment test is performed as of the first day of the
Company’s fourth quarter. The impairment test is a two‐step process, whereby in the first step, the Company
compares the estimated fair value with the carrying amount, including goodwill. The Company generally determines
the estimated fair value using a discounted cash flow approach, giving consideration to the market valuation
approach. If the carrying amount exceeds the fair value, the Company performs the second step of the impairment
test to determine the amount of impairment, if any. Based on the test results, no impairment was recorded for the
years ended December 31, 2019 or 2018.
Definite-lived intangible assets – Intangible assets consisting of trademarks and franchise agreements are amortized
using the straight-line method over ten years. Amortization expense related to intangible assets is included in
depreciation and amortization expense. The recoverability of the carrying values of all intangible assets with finite
lives is evaluated when events or changes in circumstances indicate an asset’s value may be impaired. Impairment
testing is based on a review of forecasted undiscounted operating cash flows. If such analysis indicates that the
carrying value of these assets is not recoverable, the carrying value of such assets is reduced to fair value, which is
determined based on discounted future cash flows, through a charge to the statement of operations. No definite-lived
intangible asset impairment was recorded for the years ended December 31, 2019 or 2018.
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Recently adopted accounting pronouncements –

Revenue recognition – In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting
Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (ASC 606). This new standard
provides a single comprehensive model for entities to use in accounting for revenue arising from contracts with
customers and supersedes the revenue recognition requirements in ASC Topic 605, “Revenue Recognition,” and
most industry-specific guidance. The core principle of the new guidance is that an entity should recognize revenue
to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to
which an entity expects to be entitled in exchange for those goods or services, which could potentially result in
changes in the amount and timing of revenue recognition for certain transactions.
The Company adopted ASC 606 on January 1, 2019 using the full retrospective transition method. The financial
statements reflect the application of ASC 606 beginning on January 1, 2018. The new pronouncement changed the
way initial fees from franchisees for new franchise agreements are recognized. Under the previous revenue
recognition guidance, initial franchise fees were recognized as revenue when a new studio opened. In accordance
with the new guidance, the initial franchise services are not distinct from the continuing rights and services offered
during the term of the franchise agreement and are therefore considered a single performance obligation together
with the continuing rights and services. As such, initial fees received are recognized over the franchise term and any
unamortized portion is recorded as deferred revenue in the Company’s balance sheet. Similarly, the new
pronouncement changed the way commissions paid for new franchise openings are recognized. Under previous
guidance, commission expense was recognized when a new studio opens. In accordance with the new guidance, the
commissions paid are recognized over the franchise term and any unamortized portion will be recorded as deferred
costs in the Company’s balance sheet. ASC 606 did not impact the Company’s revenue recognition for other types
of revenue.
As a result of the adoption of ASC 606 using the full retrospective transition method, the following adjustments
were made to the Company’s previously issued 2018 financial statements:
• Accounts receivable decreased $35,000;

• Deferred costs, current portion decreased $1,909,277;
• Deferred costs, net of current portion increased $1,971,017;
• Deferred revenue, current portion decreased $2,577,279;
• Deferred revenue, net of current portion increased $2,683,989;
• Franchise revenue decreased $141,710;
• Costs of service revenue decreased $61,740;
• Net loss increased $79,970.
Revenue recognition –The Company’s contracts with customers consist of franchise agreements with franchisees.
The Company also enters into agreements to sell merchandise and equipment, training, on-demand video services
and membership to Company-owned studios. The Company’s revenues primarily consist of franchise license
revenues, other franchise related revenues including equipment and merchandise sales and training revenue. In
addition, the Company earns service revenue and other revenue.
Each of the Company’s primary sources of revenue and their respective revenue policies are discussed further
below.
Franchise revenue -
The Company enters into franchise agreements for each franchised studio. The Company’s performance obligation
under the franchise license is granting certain rights to access the Company’s intellectual property; all other services
the Company provides under the franchise agreement are highly interrelated, not distinct within the contract, and
therefore accounted for as a single performance obligation, which is satisfied over the term of each franchise
agreement. Those services include initial development, operational training, preopening support and access to the
Company’s technology throughout the franchise term. Fees generated related to the franchise license include
development fees, royalty fees, marketing fees, technology fees and transfer fees, which are discussed further below.
Variable fees are not estimated at contract inception, and are recognized as revenue when invoiced, which occurs
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monthly. The Company has concluded that its agreements do not contain any financing components.
Franchise development fee revenue – The Company’s franchise agreements typically operate under ten-year terms
with the option to renew for up to two additional five-year successor terms. The Company determined the renewal
options are neither qualitatively nor quantitatively material and do not represent a material right. Initial franchise
fees are non-refundable and are typically collected upon signing of the franchise agreement. Initial franchise fees are
recorded as deferred revenue when received and are recognized on a straight-line basis over the franchise life, which
the Company has determined to be ten years, as the Company fulfills its promise to grant the franchisee the rights to
access and benefit from the Company’s intellectual property and to support and maintain the intellectual property.
The Company may enter into an area development agreement with certain franchisees. Area development
agreements are for a territory in which a developer has agreed to develop and operate a certain number of franchise
locations over a stipulated period of time. The related territory is unavailable to any other party and is no longer
marketed to future franchisees by the Company. Depending on the number of studios purchased under franchise
agreements or area development agreements, the initial franchise fee ranges from $60,000 (single studio) to
$350,000 (ten studios) and is paid to the Company when a franchisee signs the area development agreement. Area
development fees are initially recorded as deferred revenue. The development fees are allocated to the number of
studios purchased under the development agreement. The revenue is recognized on a straight-line basis over the
franchise life for each studio under the development agreement.
Franchise royalty fee revenue – Royalty revenue represents royalties earned from each of the franchised studios in
accordance with the franchise disclosure document and the franchise agreement for use of the brands’ names,
processes and procedures. The royalty rate in the franchise agreement is typically 7% of the gross sales of each
location operated by each franchisee. Royalties are billed on a monthly basis. The royalties are entirely related to the
Company’s performance obligation under the franchise agreement and are billed and recognized as franchisee sales
occur.
Technology fees – The Company may provide access to third-party or other proprietary technology solutions to the
franchisees for a fee. The technology solution may include various software licenses for statistical tracking,
scheduling, allowing club members to record their personal workout statistics, music and technology support. The
Company bills and recognizes the technology fee as earned each month as the technology solution service is
performed.
Training revenue – The Company provides coach training services either through direct training of the coaches who
are hired by franchisees or by providing the materials and curriculum directly to the franchisees who utilize the
materials to train their hired coaches. Direct training fees are recognized over time as training is provided. Training
fees for materials and curriculum are recognized at the point in time of delivery of the materials.
Franchise marketing fund revenue– Franchisees are required to pay marketing fees of 2% of their gross sales. The
marketing fees are collected by the Company on a monthly basis and are to be used for the advertising, marketing,
market research, product development, public relations programs and materials deemed appropriate to benefit
brands. The Company’s promise to provide the marketing services funded through the marketing fund is considered
a component of the Company’s performance obligation to grant the franchise license. The Company bills and
recognizes marketing fund fees as revenue each month as gross sales occur.
Equipment and merchandise revenue -

The following revenues are generated as a result of transactions with or related to the Company’s franchisees.
Equipment revenue – The Company sells authorized equipment to franchisees to be used in the franchised studios.
Certain franchisees may prepay for equipment, and in that circumstance, the revenue is deferred until delivery.
Equipment revenue is recognized when control of the equipment is transferred to the franchisee, which is at the
point in time delivery and installation of the equipment at the studio is complete.
Merchandise revenue –The Company sells branded and non-branded merchandise to franchisees for retail sales to
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customers at studios. For branded merchandise sales, the performance obligation is satisfied at the point in time of
shipment of the ordered branded merchandise to the franchisee. For such branded merchandise sales, the Company
is the principal in the transaction as it controls the merchandise prior to it being delivered to the franchisee. The
Company records branded merchandise revenue and related costs upon shipment on a gross basis. Customers have
the right to return and/or receive credit for defective merchandise. Returns and credit for defective merchandise were
not significant for the years ended December 31, 2019 and 2018.
For certain non-branded merchandise sales, the Company earns a commission to facilitate the transaction between
the franchisee and the supplier. For such non-branded merchandise sales, the Company is the agent in the
transaction, facilitating the transaction between the franchisee and the supplier, as the Company does not obtain
control of the non-branded merchandise during the order fulfillment process. The Company records non-branded
merchandise commissions revenue at the time of shipment.
Other revenue -
Service revenue – For Company-owned studios, the Company’s distinct performance obligation is to provide the
fitness classes to the customer. The Company-owned studios sell memberships by individual class and by class
packages. Revenue from the sale of classes and class packages for a specified number of classes are recognized over
time as the customer attends and utilizes the classes. Revenues from the sale of class packages for an unlimited
number of classes are recognized over time on a straight-line basis over the duration of the contract period.
Additionally, the Company earns commission income from certain of its franchisees’ use of certain preferred
vendors. In these arrangements, the Company is the agent as it is not primarily responsible for fulfilling the orders.
Commissions are earned and recognized at the point in time the vendor ships the product to franchisees.
Sales taxes, value added taxes and other taxes that are collected in connection with revenue transactions are withheld
and remitted to the respective taxing authorities. As such, these taxes are excluded from revenue. The Company
elected to account for shipping and handling as activities to fulfill the promise to transfer the good. Therefore,
shipping and handling fees that are billed to franchisees are recognized in revenue and the associated shipping and
handling costs are recognized in cost of goods sold as soon as control of the goods transfers to the franchisee.
Credit Losses – The Company’s accounts and notes receivable are recorded at net realizable value, which includes
an appropriate allowance for estimated credit losses. The estimate of credit losses is based upon historical bad debts,
current receivable balances, age of receivable balances, the customer’s financial condition and current economic
trends, all of which are subject to change. Actual uncollected amounts have historically been consistent with the
Company’s expectations. The Company’s payment terms on its receivables from franchisees are generally 30 days.
Contract Balances -
Contract Liabilities – Contract liabilities consist of deferred revenue resulting from franchise fees and development
fees paid by franchisees, which are recognized over time on a straight-line basis over the franchise agreement term.
Also included in the deferred revenue balance are nonrefundable prepayments for merchandise and equipment, as
well as revenues for training and service revenue for which the associated products or services have not yet been
provided to the customer. The Company classifies these contract liabilities as either current deferred revenue or non-
current deferred revenue in the balance sheet based on the anticipated timing of delivery. The following table
reflects the change in contract liabilities for the years ended December 31, 2019 and 2018:
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Franchise
Development Equipment and
Fees Other Total
Balance at January 1, 2018 $ — $ — $ —
beginning of the year — — —
Increase, excluding amounts recognized as revenue during the year 4,888,044 1,192,890 6,080,934
Balance at December 31, 2018 4,888,044 1,192,890 6,080,934
beginning of the year (256,657) (1,192,890) (1,449,547)
Balance at December 31, 2019 $ 9,777,337 $ 697,285 $ 10,474,622
The following table illustrates estimated revenue expected to be recognized in the future related to performance
obligations that were unsatisfied (or partially unsatisfied) as of December 31, 2019. The expected future recognition
period for deferred franchise development fees related to unopened studios is based on management’s best estimate
of the beginning of the franchise license term for those studios. The Company elected to not disclose sales and
usage-based royalties, marketing fees and any other variable consideration recognized on an “as invoiced” basis.
Franchise
Development Equipment
Contract liabilities to be recognized in revenue in Fees and Other Total
2020 $ 461,928 $697,285 $ 1,159,213
2021 924,077 - 924,077
2022 993,014 - 993,014
2023 1,012,556 - 1,012,556
2024 1,019,889 - 1,019,889
Thereafter 5,365,873 - 5,365,873
$9,777,337 $697,285 $10,474,622
The following table reflects the components of deferred revenue:
December 31,
2019 2018
Franchise and area development fees $ 9,777,337 $ 4,888,044
Equipment and other 697,285 1,192,891
Total deferred revenue 10,474,622 6,080,935
Non-current portion of deferred revenue 9,315,409 4,706,489
Current portion of deferred revenue $ 1,159,213 $ 1,374,446
Contract Costs – Contract costs consist of deferred commissions resulting from franchise and area development
sales by third-party and affiliate brokers. The total commission charged by the broker is deferred at the point of a
franchise sale. The commissions are evenly split among the number of studios purchased under the development
agreement and begin to be amortized when a subsequent franchise agreement is executed. The commissions are
recognized on a straight-line basis over the initial ten-year franchise agreement term to align with the recognition of
the franchise agreement or area development fees. The Company classifies these deferred contract costs as either
current deferred costs or non-current deferred costs in the balance sheet. The associated expense is classified within
costs of franchise and service revenue in the statements of operations. At December 31, 2019 and 2018, there were
approximately $284,000 and $128,000 of current deferred costs and approximately $5,865,000 and $3,228,000 in
non-current deferred costs, respectively. The Company recognized approximately $280,000 and $53,000 in
franchise sales commissions expense for the years ended December 31, 2019 and 2018, respectively. During the
years ended December 31, 2019 and 2018 the Company recorded $1,555,000 and $2,271,000, respectively, of
deferred commission costs paid to affiliates of the Member, which are being recognized over the initial ten-year
franchise agreement term.
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Shipping and Handling Fees – Shipping and handling fees billed to customers are recorded in merchandise and
equipment revenues. The costs associated with shipping goods to customers are included in costs of product revenue
in the accompanying statements of operations.
Costs of franchise and service revenue – Costs of franchise and service revenue consists of commissions related to
the signing of franchise agreements, travel and personnel expenses related to the on-site training provided to the
franchisees, and expenses related to the purchase of the technology packages and the related monthly fees. Costs of
franchise and service revenue excludes depreciation and amortization.
Costs of product revenue – Costs of product revenue consists of cost of equipment and merchandise and related
freight charges. Costs of product revenue excludes depreciation and amortization.
Advertising costs – Advertising costs are expensed as incurred. Advertising costs are included in selling, general
and administrative expense. For the years ended December 31, 2019 and 2018, the Company had approximately
$542,000 and $701,000, respectively, of advertising costs, including amounts spent in excess of marketing fund
revenue.
Selling, general and administrative expenses – The Company’s selling, general and administrative (“SG&A”)
expenses consist of sales and marketing expenses, employee-related expenses and Member-allocated SG&A
expenses based on shared services primarily consisting of payroll, professional and legal fees, occupancy expenses,
management fees, travel expenses, and convention expenses. Allocations are generally divided evenly across all
franchisors owned by the Member, however in 2018, convention expenses were allocated based on the relative size
of the franchisors owned by the Member. Total allocations of convention expenses were approximately $581,000
and $508,000 for the years ended December 31, 2019 and 2018, respectively. Total allocations of convention
revenues were approximately $250,000 and $129,000 for the years ended December 31, 2019 and 2018,
respectively.
Marketing fund expenses – Marketing fund expenses are recognized as incurred, and any marketing fund
expenditures in excess of marketing fund revenue are reclassified as SG&A expenses in the accompanying
statements of operations.
Income taxes – As a single member LLC, the Company is considered a disregarded entity and the results of its
operations are filed with the Member’s federal and state income tax returns. As such, the Company itself is typically
not subject to an income tax liability as the taxable income or loss of the Company is passed through to the Member.
Therefore, no liability for federal income taxes has been included in the financial statements. The Company
accounts for uncertain tax positions in accordance with Accounting Standards Codification (“ASC”) 740. ASC
Topic 740 prescribes a recognition threshold and measurement process for accounting for uncertain tax positions
and also provides guidance on various related matters such as derecognition, interest, penalties, and required
disclosures. The Company does not have any uncertain tax positions. However, the Company is required to pay an
annual gross receipts fee and tax for its operations in California.
Comprehensive income – The Company does not have any components of other comprehensive income recorded
within its financial statements and, therefore does not separately present a statement of comprehensive income in its
financial statements.
Recently issued accounting pronouncements –

Accounting for leases – In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842).” This new
topic, which supersedes Topic 840, “Leases,” applies to all entities that enter into a contract that is or contains a
lease, with some specified scope exemptions. This new standard requires lessees to evaluate whether a lease is a
finance lease using criteria similar to those a lessee uses under current accounting guidance to determine whether it
has a capital lease. Leases that do not meet the criteria for classification as finance leases by a lessee are to be
classified as operating leases.
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Under the new standard, for each lease classified as an operating lease, lessees are required to recognize on the
balance sheet: (i) a right-of-use (“ROU”) asset representing the right to use the underlying asset for the lease term
and (ii) a lease liability for the obligation to make lease payments over the lease term. Lessees can make an
accounting policy election, by class of underlying asset, to not recognize ROU assets and lease liabilities for leases
with a lease term of 12 months or less as long as the leases do not include options to purchase the underlying assets
that the lessee is reasonably certain to exercise. This standard also requires an entity to disclose key information
(both qualitative and quantitative) about the entity’s leasing arrangements. Upon adoption, entities are required to
recognize and measure leases at the beginning of the earliest period presented using a modified retrospective
approach, which includes a number of optional practical expedients that entities may elect to apply. Management is
currently evaluating the impact of this new guidance on its financial statements.
In November 2019, the FASB issued ASU No. 2019-10, “Financial Instruments – Credit Losses (Topic 326),
Derivatives and Hedging (Topic 815), and Leases (Topic 842)”, which defers the effective date of ASU No. 2016-02
to fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December
15, 2021.
Goodwill – In January 2017, the FASB issued ASU No. 2017-04, “Intangibles – Goodwill and Other (Topic 350).”
This ASU simplifies the subsequent measurement of goodwill. FASB eliminated the Step 2 analysis from the
goodwill impairment test which is meant to reduce the cost and complexity of evaluating goodwill for impairment.
The Company has yet to determine if this ASU will be material to its financial statements.
In November 2019, the FASB issued ASU No. 2019-10, “Financial Instruments – Credit Losses (Topic 326),
Derivatives and Hedging (Topic 815), and Leases (Topic 842)”, which defers the effective date of ASU No. 2017-04
to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.
Fair value measurements – ASC 820, Fair Value Measurements and Disclosures, applies to all financial assets and
financial liabilities that are measured and reported on a fair value basis and requires disclosure that establishes a
framework for measuring fair value and expands disclosure about fair value measurements. ASC 820 establishes a
valuation hierarchy for disclosures of the inputs to valuations used to measure fair value.
This hierarchy prioritizes the inputs into three broad levels as follows:
Level 1 – Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be
accessed at the measurement date.
Level 2 – Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for
identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are
observable for the asset or liability (i.e., interest rates and yield curves), and inputs that are derived principally
from or corroborated by observable market data by correlation or other means (market corroborated inputs).
Level 3 – Unobservable inputs that reflect assumptions about what market participants would use in pricing
the asset or liability. These inputs would be based on the best information available, including the Company’s
own data.
The Company’s financial instruments include cash, restricted cash, accounts receivable, notes receivable, accounts
payable, accrued expenses and notes payable. The carrying amounts of these financial instruments are categorized
within Level 1 of the fair value hierarchy due to the short-term nature of these balances and approximate their fair
value due to their short maturities.
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Note 3 – Property and Equipment
Property and equipment consisted of the following:
Estimated December 31,

Useful
Life 2019 2018
Computers 3 years $ 26,983 $ 20,621
Less: accumulated depreciation (8,197) (2,763)
Total property and equipment, net $ 18,786 $ 17,858
Depreciation expense for the years ended December 31, 2019 and 2018 was approximately $5,000 and $3,000,
respectively.
Note 4 – Goodwill and Intangible Assets

Goodwill represents the excess of cost over the fair value of identifiable net assets acquired related to the original
purchase of the “Stretch Lab” concept. Goodwill is not amortized but is tested annually for impairment or more
frequently if indicators of potential impairment exist. As of December 31, 2019, and 2018, there was no change in
previously reported goodwill and no impairment has been identified.
Definite-lived intangible assets consisted of the following:
December 31, 2019 December 31, 2018

Amortization Gross Accumulated Net Gross Accumulated Net
Period Amount Amortization Amount Amount Amortization Amount
Trademarks 10 years $ 323,328 $ (64,055) $ 259,273 $ 300,000 $ (32,500) $ 267,500
Franchise agreements 10 years 200,000 (41,667) 158,333 200,000 (21,667) 178,333
Web design and domain 10 years 65,000 (12,458) 52,542 65,000 (5,958) 59,042
Total $ 588,328 $ (118,180) $ 470,148 $ 565,000 $ (60,125) $ 504,875
Amortization expense for the years ended December 31, 2019 and 2018 was approximately $60,000 and $58,000,
respectively.
The estimated amortization expense of intangible assets is as follows:
Year ending December 31,

2020 $ 58,833
2021 58,833
2022 58,833
2023 58,833
2024 58,833
Thereafter 175,983
Total $ 470,148
Note 5 – Related Party Transactions

Significant related party transactions consist of allocations of expenses from the Member, borrowings from, and
excess cash transfers to the Member and other related parties under common control of the Member or the
Member’s parent. In addition, the Member has a credit facility that requires collateral. All obligations under the
Member’s credit facility are secured by substantially all of the tangible and intangible assets of the Company.
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Related party balances are as follows:
December 31,
2019 2018
Related party receivables:
Row House Franchise, LLC $ 57,575 $ 5,578
Xponential Fitness Brands International, LLC 7,794 —
Total related party receivables $ 65,369 $ 5,578
Related party payables:
Member $ 2,037,049 $ 1,553,559
Club Pilates Franchise, LLC 259,774 349,498
AKT Franchise, LLC 14,474 —
Yoga Six Franchise, LLC 16,000 —
PB Franchising, LLC 2,441 —
Total related party payables $ 2,329,738 $ 1,903,057
The Chief Executive Officer of the Company is the sole owner of Intensive Capital Inc. (“ICI”). ICI provides
unsecured loans to the Company, which loans the funds to the franchisees to purchase a franchise territory or to
setup a studio. At December 31, 2018, the Company had recorded notes receivable of approximately $206,000 and
notes payable of approximately $286,000 related to these loans. During the year ended December 31, 2019, the
notes receivable were collected from the franchisees and the notes payable were repaid to ICI. There are no notes
receivable or payable outstanding at December 31, 2019. Each of the loans accrued interest at 15% per annum, with
interest accruing beginning 30 days after issuance. During the years ended December 31, 2019 and 2018, the
Company recorded interest expense to ICI of approximately $13,000 and $11,000, respectively. ICI also provides
loans directly to franchisees. During the years ended December 31, 2019 and 2018, the Company made interest
payments on these loans to ICI on behalf of the franchisees of approximately $17,000 and $0, respectively, which is
included in SG&A expense in the accompanying statements of operations.
Note 6 – Contingencies and Litigation

The Company is subject to normal and routine litigation brought by former or current employees, customers,
franchisees, vendors, landlords or others. The Company intends to defend itself in any such matters. The Company
believes that the ultimate determination of liability in connection with legal claims pending against it, if any, will not
have a material adverse effect on its business, the annual results of operations, liquidity or financial position;
however, it is possible that the Company’s business, results of operations, liquidity, or financial condition could be
materially affected in a particular future reporting period by the unfavorable resolution of one or more matters or
contingencies during such period.
In connection with the 2017 acquisition, the Company agreed to pay to the seller 20% of operational or change of
control distributions, until the date there is a change in control of the Company or a liquidation. As of the purchase
date and December 31, 2017, the Company determined the fair value of the contingent consideration was
approximately $171,000. As of December 31, 2018, the Company recorded contingent consideration of $1,676,000
which represents the fair value of the contingent consideration discounted at a rate of 8.5% based on the projected
payment date.
The Company recorded approximately $1,515,000 of additional contingent consideration, of which $10,000 and
$1,505,000 was recorded as interest expense and change in fair value of contingent consideration from acquisitions,
respectively, for the year ended December 31, 2018. The Company determined the estimated fair value using a
discounted cash flow approach, giving consideration to the market valuation approach, which is a Level 3
measurement. Inputs used in the methodology primarily included sales forecasts, projected future cash flows and
discount rate commensurate with the risk involved.
In September 2019, the Company entered into a settlement agreement with the Stretch Lab sellers to resolve
disputes related to the acquisition and related agreements and to settle all amounts due under the contingent
consideration. Under the terms of the settlement, the Company took ownership of four Stretch Lab studios owned by
the sellers, with a fair value of $532,000, and will make payments to the sellers aggregating $6,500,000. In
16
connection with the settlement, during the year ended December 31, 2019, the Company recorded additional
expense of approximately $3,520,000 in change in fair value of contingent consideration representing the liability
discounted at a rate of 8.5%, net of the previously recorded contingent consideration. At December 31, 2019, the
liability was $2,750,000 recorded as accrued expenses and $1,685,000 as contingent consideration from
acquisitions, respectively, on the accompanying balance sheets. The Company made an initial payment of
$1,000,000 in September 2019, and the first quarterly payment of $687,500 in December 2019. Quarterly payments
of $687,500 will continue through September 2021. The Company recognized the studio assets acquired and related
liability under the settlement in September 2019. The studio assets were sold in September 2019 to third-party
franchisees.
Note 7 – Subsequent Events

The Company has evaluated subsequent events through April 27, 2020, which is the date its financial statements were
available to be issued.
On March 11, 2020, the World Health Organization declared a novel strain of coronavirus disease (“COVID-19”) a
pandemic. In response to the pandemic, several states have required non-essential businesses to temporarily shut
down. As of April 27, 2020, substantially all of the franchisee’s studios have temporarily closed. The Company is
providing video on demand and livestream options to its franchisees and their members at no charge during the
temporary closures. The date at which the studios can reopen has not been specified by the applicable states. As of
April 27, 2020, franchisees continue to collect membership fees from their active members and the Company has
continued to collect the related royalties from the franchisees. Certain franchisee members have elected to freeze
their memberships until the studios reopen or cancel their memberships, which could result in decreased revenue for
franchisees and the Company.
The extent of COVID-19’s effect on the Company’s operational and financial performance will depend on future
developments, including the duration, spread and intensity of the pandemic, all of which are uncertain and difficult
to predict. Management is monitoring the potential effects of the health care related and economic conditions of
COVID-19 on the Company including any decrease or slowdown in sales and openings of franchise studios,
additional temporary closures of existing franchisee studios and financial distress for franchisees which could result
in lower franchise fee and royalty revenues, decreased equipment and merchandise sales and declines in related cash
flows. If the impact results in longer term closures of studios or lower cash flows, the Company may recognize
material asset impairments or charges for uncollectible accounts receivable in future periods.
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted to
provide financial aid to families and businesses impacted by the COVID-19 pandemic. The Company plans to
participate in the CARES Act and any other programs for which it is eligible. The Member continues to provide all
administrative and similar support functions to the Company, has available credit facilities and existing cash and has
committed to fund the Company’s operations as may be necessary through at least April 30, 2021. Management
currently estimates that the Company’s cash flows, and support from the Member if required, would provide
sufficient cash flows for at least twelve months after the issuance date of the Company’s financial statements.
17
Exhibit D
STATEMENT OF PROSPECTIVE FRANCHISEE

STRETCH LAB
STATEMENT OF PROSPECTIVE FRANCHISEE
[Note: Dates and Answers Must Be Completed

in the Prospective Franchisee's Own Handwriting.]
Since the Prospective Franchisee (also called "me," "our," "us," "we" and/or "I" in this document) and
Stretch Lab (also called the "Franchisor” or “STRETCH LAB”) both have an interest in making sure that no
misunderstandings exist between them, and to verify that no violations of law might have occurred, and
understanding that the Franchisor is relying on the statements I/we make in this document, I/we assure the
Franchisor as follows:
A. The following dates and information are true and correct:
1. _____________, 20___ The date on which I/we received a Uniform Franchise Disclosure
Document about a Franchise.
Initials _____________
2. _____________, 20___ The date when I/we received a fully completed copy (other than
signatures) of the Franchise Agreement, Development Agreement
Initials _____________ (if appropriate) and all other documents I/we later signed.
3. _____________, 20___ The earliest date on which I/we signed the Franchise Agreement,
Development Agreement or any other binding document (not
Initials _____________ including any Letter or other Acknowledgment of Receipt.)
4. _____________, 20___ The earliest date on which I/we delivered cash, check or other
consideration to the Franchisor, or any other person or company.
Initials _____________
B. Representations and Other Matters:
1. No oral, written, visual or other promises, agreements, commitments, representations, understandings,

"side deals," options, rights-of-first-refusal or otherwise of any type (collectively, the “representations”),
including, but not limited to, any which expanded upon or were inconsistent with the Disclosure Document, the
Franchise Agreement, or any other written documents, have been made to or with me/us with respect to any matter
(including, but not limited to, advertising, marketing, site location and/or development, operational, marketing or
administrative assistance, exclusive rights or exclusive or protected territory or otherwise) nor have I/we relied in
any way on any such representations, except as expressly set forth in the Franchise Agreement, or a written
Addendum thereto signed by the Prospective Franchisee and the Franchisor, except as follows:
__________________________________________________________________.
(If none, the Prospective Franchisee should write NONE in his/her/their own handwriting.)
Prospective Franchisee's Initials: ______________________________________
2. No oral, written, visual or other claim, guarantee or representation (including, but not limited to, charts,
tables, spreadsheets or mathematical calculations to demonstrate actual or possible results based on a combination
of variables, such as multiples of price and quantity to reflect gross sales, or otherwise), which stated or suggested
any specific level or range of actual or potential sales, costs, income, expenses, profits, cash flow, tax effects or
otherwise (or from which such items might be ascertained), from franchised or non-franchised units, was made to

me/us by Franchisor, its affiliates or agents/representatives, nor have I/we relied in any way on any such, except
for information (if any) expressly set forth in Item 19 of the Franchisor's Disclosure Document (or an exhibit
referred to therein), except as follows:
Prospective Franchisee's Initials: __________________________________
3. No contingency, prerequisite, reservation or otherwise exists with respect to any matter (including, but
not limited to, the Prospective Franchisee obtaining any financing, the Prospective Franchisee's selection,
purchase, lease or otherwise of a location, any operational matters or otherwise) or the Prospective Franchisee
fully performing any of the Prospective Franchisee's obligations, nor is the Prospective Franchisee relying on the
Franchisor or any other entity to provide or arrange financing of any type, nor have I/we relied in any way on
such, except as expressly set forth in the Franchise Agreement, Development Agreement (if and as appropriate)
or a written Addendum thereto signed by the Prospective Franchisee and the Franchisor, except as follows:
__________________________________________________________________.
(If none, the Prospective Franchisee should write NONE in his/her/their own handwriting.)
4. The individuals signing for the "Prospective Franchisee" constitute all of the executive officers, partners,
shareholders, investors and/or principals of the Prospective Franchisee and each of such individuals has received
the Uniform Franchise Disclosure Document and all exhibits and carefully read, discussed, understands and agrees
to the Franchise Agreement, Development Agreement (if and as appropriate), each written Addendum and any
Personal Guarantees.
5. I/we have had an opportunity to consult with an independent professional advisor, such as an attorney or
accountant, prior to signing any binding documents or paying any sums, and the Franchisor has strongly
recommended that I/we obtain such independent professional advice. I/we have also been strongly advised by the
Franchisor to discuss my/our proposed purchase of, or investment in, a STRETCH LAB Studio Franchise with
existing Franchisees prior to signing any binding documents or paying any sums and I/we have been supplied with
a list of existing STRETCH LAB Studio Franchisees.
6. I confirm that, as advised, I’ve spoken with past and/or existing STRETCH LAB Studio Franchisees, and
that I made the decision as to which, and how many, STRETCH LAB Studio Franchisees to speak with.
7. I/we understand that: entry into any business venture necessarily involves some unavoidable risk of loss
or failure, the purchase of a STRETCH LAB Franchise (or any other) is a speculative investment, an investment
beyond that outlined in the Disclosure Document may be required to succeed, there exists no guaranty against
possible loss or failure in this or any other business and the most important factors in the success of any STRETCH
LAB Franchise, including the one to be operated by me/us, are my/our personal business, marketing, sales,
management, judgment and other skills.
Prospective Franchisee's Initials: _____________________________________

If there are any matters inconsistent with the statements in this document, or if anyone has suggested that
I sign this document without all of its statements being true, correct and complete, I/we will (a) immediately
inform the President of Stretch Lab Franchise, LLC, and (b) make a written statement regarding such next to my
signature below so that the Franchisor may address and resolve any such issue(s) at this time and before either
party goes forward.
I/we understand and agree that the Franchisor does not furnish or endorse, or authorize its salespersons or
others to furnish or endorse, any oral, written or other information concerning actual or potential sales, costs,
income, expenses, profits, cash flow, tax effects or otherwise (or from which such items might be ascertained),
from franchised or non-franchised units, that such information (if any) not expressly set forth in Item 19 of the
Franchisor's Disclosure Document (or an exhibit referred to therein) is not reliable and that I/we have not relied
on it, that no such results can be assured or estimated and that actual results will vary from unit to unit, franchise
to franchise, and may vary significantly.
I/we understand and agree to all of the foregoing and represent and warrant that all of the above statements
are true, correct and complete.
Date: ___________________________
PROSPECTIVE FRANCHISEE (Individual) PROSPECTIVE FRANCHISEE (Corp., LLC or

Partnership) [Must be accompanied by appropriate
______________________________ personal guarantee(s)]
Signature
_______________________________________
______________________________ Legal Name of Entity
Printed Name
a ______________________
______________________________ State of incorporation, formation, etc.
Signature
By: ____________________________________
______________________________ Name
Printed Name
____________________________________
Signature
Title:________________________________

Exhibit E
TABLE OF CONTENTS OF THE OPERATIONS MANUAL

StretchLab Franchise, LLC
Operations Brand Standards Manual
TABLE OF CONTENTS
CHAPTER 1: GENERAL INFORMATION ............................................................................................. 1
SECTION 1.1 – THE PURPOSE OF THE MANUAL............................................................................................ 2
SECTION 1.2 – HOW TO USE THIS MANUAL ................................................................................................. 3
SECTION 1.3 – THE STRETCHLAB STORY ..................................................................................................... 5
SECTION 1.4 – STRETCHLAB 10 COMMANDMENTS ...................................................................................... 7
CHAPTER 2: THE FRANCHISE RELATIONSHIP ............................................................................... 1

SECTION 2.1 – THE FRANCHISEE / FRANCHISOR RELATIONSHIP .................................................................. 2
SECTION 2.2 – OUR RESPONSIBILITIES ........................................................................................................ 4
SECTION 2.3 – YOUR OBLIGATIONS ............................................................................................................ 6
SECTION 2.4 – ESTABLISHING YOUR BUSINESS ENTITY............................................................................. 17
SECTION 2.5 – TRANSFER YOUR FRANCHISE AGREEMENT ........................................................................ 20
CHAPTER 3: FRANCHISE REQUIREMENTS ...................................................................................... 1
SECTION 3.1 – THE FRANCHISEE / FRANCHISOR RELATIONSHIP .................................................................. 2
CHAPTER 4: OPERATIONAL STANDARDS ........................................................................................ 1
SECTION 4.1 – THE IMPORTANCE OF STANDARDS ....................................................................................... 2
SECTION 4.2 – THE STANDARDS .................................................................................................................. 4
CHAPTER 5: PERSONNEL ....................................................................................................................... 1
SECTION 5.1 – OVERVIEW AND DISCLAIMER ............................................................................................... 2
SECTION 5.2 – LAWS AND REQUIREMENTS .................................................................................................. 3
SECTION 5.3 – JOB DESCRIPTIONS ............................................................................................................... 4
SECTION 5.4 – LEAD SOURCES FOR HIRING ................................................................................................. 9
SECTION 5.5 – STRETCHLAB SUPPORT CALLS ........................................................................................... 10
CHAPTER 6: STUDIO OPERATIONS BEST PRACTICES.................................................................. 1
SECTION 6.1 – OVERVIEW ........................................................................................................................... 2
SECTION 6.2 – STRETCHLAB SERVICES ....................................................................................................... 3
SECTION 6.3 – FREE TRIAL .......................................................................................................................... 5
SECTION 6.4 – ATTIRE & RETAIL ................................................................................................................ 6
SECTION 6.5 – THE CLIENT ......................................................................................................................... 7
SECTION 6.6 – RETAIL ............................................................................................................................... 10
SECTION 6.7 – DAILY ACTIVITIES ............................................................................................................. 11
SECTION 6.8 – CLUB READY ..................................................................................................................... 12
CHAPTER 7: SALES................................................................................................................................... 1
SECTION 7.1 – THE CLIENT ......................................................................................................................... 2
SECTION 7.2 – COMPETITION....................................................................................................................... 3
SECTION 7.3 – MEMBERSHIP RATES ............................................................................................................ 5
SECTION 7.4 – 1:1 STRETCH ........................................................................................................................ 6
SECTION 7.5 – PRE-SALE ............................................................................................................................. 7
SECTION 7.6 – OBJECTIONS ......................................................................................................................... 8
SECTION 7.7 – SIGN THEM UP ...................................................................................................................... 9
SECTION 7.8 – TURNOVER ......................................................................................................................... 10
SECTION 7.9 – SALES MANAGEMENT BEST PRACTICES ............................................................................. 11
SECTION 7.10 – SALES TOOLS ................................................................................................................... 12
SECTION 7.11 – SALES TIME LINE ............................................................................................................. 13
CHAPTER 8: CRISIS MANAGEMENT ................................................................................................... 1
SECTION 8.1 – DEFINING A CRISIS ............................................................................................................... 2
SECTION 8.2 – CRISIS COMMUNICATION ..................................................................................................... 3
CHAPTER 9: STUDIO ADMINISTRATION ........................................................................................... 1
SECTION 9.1 – KEY PERFORMANCE INDICATORS AND PROFITABILITY ........................................................ 2
SECTION 9.2 – MANAGING THE NUMBERS ................................................................................................... 4
SECTION 9.3 – INVENTORY CONTROL.......................................................................................................... 6
SECTION 9.4 – RISK MANAGEMENT ............................................................................................................ 7
SECTION 9.5 – DATA SECURITY................................................................................................................. 11
TOTAL PAGES: APPROXIMATELY 82
Exhibit F
SAMPLE RELEASE AGREEMENT

GENERAL RELEASE OF ALL CLAIMS
_______________________ (FRANCHISEE”) and ______________________, an individual

(“GUARANTOR”) enter into this General Release on __________________, with reference to the following
facts:
1. On ______________________, Stretch Lab Franchise, LLC, a Delaware limited liability

company (“FRANCHISOR”), and FRANCHISEE entered into a Franchise Agreement (the “Franchise
Agreement”) to operate a STRETCH LAB Franchised Business located at
_________________________________ (the “Premises”). GUARANTOR guaranteed FRANCHISEE’s
performance under the Franchise Agreement pursuant to a Guarantee and Assumption of Obligations (the
“Guarantee”). In consideration of FRANCHISOR’S processing and approval of
_____________________________________________________, the Franchise Agreement provides that
FRANCHISEE must sign this General Release as a condition to such ___________. All capitalized terms not
otherwise defined in this General Release shall have the same meaning as in the Franchise Agreement and/or the
Guarantee.
2. For valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
FRANCHISEE and GUARANTOR hereby release and forever discharge FRANCHISOR, its parents and
subsidiaries and the directors, officers, employees, attorneys and agents of said corporations, and each of them,
from any and all claims, obligations, liabilities, demands, costs, expenses, damages, actions and causes of action,
of whatever nature, character or description, known or unknown (collectively “Damages”), which arose on or
before the date of this General Release, including any Damages with respect to the Franchise Agreement, the
Franchised Business, the Premises and the Guarantee. FRANCHISEE waives any right or benefit which
FRANCHISEE or GUARANTOR may have under Section 1542 of the California Civil Code or any equivalent law
or statute of any other state. Section 1542 of the California Civil Code reads as follows:
"Section 1542. Certain claims not affected by general release. A general release does not extend to
claims which the creditor does not know or suspect to exist in his favor at the time of executing this
release, which if know by him must have materially affected his settlement with the debtor."
3. This General Release sets forth the entire agreement and understanding of the parties regarding
the subject matter of this General Release and any agreement, representation or understanding, express or implied,
heretofore made by any party or exchanged between the parties are hereby waived and canceled.
4. This Agreement shall be binding upon each of the parties to this General Release and their
respective heirs, executors, administrators, personal representatives, successors and assigns.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the day and year set
forth above.
FRANCHISEE:
By:
Print Name:
Title:
GUARANTOR:
, an individual
Exhibit G
STATE SPECIFIC ADDENDA
ADDITIONAL STATE DISCLOSURES
If the franchise is located in or if franchisee is a resident of any of the following states, then the designated
provisions in the Franchise Disclosure Document (“Disclosure Document”) and Franchise Agreement will be
amended as follows:
CALIFORNIA
ADDENDUM TO DISCLOSURE DOCUMENT
California Corporations Code, Section 31125 requires the franchisor to give the franchisee a disclosure
document, approved by the Department of Financial Protection and Innovation, prior to a solicitation of a proposed
material modification of an existing franchise.
Our website has not been reviewed or approved by the California Department of Financial Protection and
Innovation. Any complaints concerning the content of this website may be directed to the California Department
of Financial Protection and Innovation at www.dfpi.ca.gov.
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED
AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE
DISCLOSURE DOCUMENT.
1. The following language is added to the end of Item 3 of the Disclosure Document:
Neither Stretch Lab Franchise, LLC, nor any person identified in Item 2, or an affiliate or
franchise broker offering franchises under our principal trademark is subject to any currently
effective order of any national securities association or national securities exchange, as defined in
the Securities and Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such
person from membership in such association or exchange.
2. The following paragraphs are added at the end of Item 17 of the Disclosure Document:
The Franchise Agreement requires franchisee to execute a general release of claims upon
renewal or transfer of the Franchise Agreement. California Corporations Code Section 31512
provides that any condition, stipulation or provision purporting to bind any person acquiring any
franchise to waive compliance with any provision of that law or any rule or order thereunder is void.
California Business and Professions Code Sections 20000 through 20043 provide rights to
franchisees concerning termination or non-renewal of a franchise. If the Franchise Agreement
contains a provision that is inconsistent with the law, the law will control.
The Franchise Agreement provides for termination upon bankruptcy. This provision may
not be enforceable under federal bankruptcy law (11 U.S.C.A. Sec. 101 et seq.).
The Franchise Agreement contains a covenant not to compete which extends beyond the
termination of the franchise. This provision may not be enforceable under California law but we
will enforce it to the extent enforceable.
The Franchise Agreement requires application of the laws of the state where the business
is located. This provision may not be enforceable under California law, but we will enforce it to the
extent enforceable.
The Franchise Agreement requires binding arbitration. The arbitration will occur in Orange
County, California, with the costs being borne by the non-prevailing party. The prevailing party
shall be entitled to recover reasonable compensation for expenses, costs and fees in connection with
arbitration, including reasonable attorney’s fees. Prospective franchisees are encouraged to consult
private legal counsel to determine the applicability of California and federal laws (such as Business
and Professions Code Section 20040.5 Code of Civil Procedure Section 1281, and the Federal
Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the
State of California.
3. The following language is added to the end of Item 19 of the Disclosure Document:
The earnings claim set forth in certain portions of Item 19 of the Disclosure Document
only describes Gross Sales (as defined therein) and therefor does not include costs of sales,
operating expenses, or other costs or expenses that must be deducted from gross revenue or gross
sales figures to obtain net income or profit.
4. The following language is added to the end of Item 5 of this Disclosure Document:
Please be advised that Franchisor has obtained a surety bond in the amount of $960,000
to demonstrate Franchisor’s financial capability to fulfill its pre-opening obligations to
franchisees that are subject to the jurisdiction of the California Franchise Investment Law under
the Franchise Agreement.
HAWAII
These franchises will be/ have been filed under the Franchise Investment Law of the State of Hawaii. Filing
does not constitute approval, recommendation or endorsement by the Director of Commerce and Consumer Affairs
or a finding by the Director of Commerce and Consumer Affairs that the information provided herein is true,
complete, and not misleading.
The Franchise Investment Law makes it unlawful to offer or sell any franchise in this state without first
providing to the prospective franchisee, or subfranchisor, at least seven days prior to the execution by the prospective
franchisee of any binding franchise or other agreement, or at least seven days prior to the payment of any
consideration by the franchisee, or subfranchisor, whichever occurs first, a copy of the Disclosure Document,
together with an copy of all proposed agreements relating to the sale of the franchise.
Notwithstanding anything contained in the Franchise Agreement or Development Agreement to the contrary,
you do not have to pay us the Initial Franchise Fee until we perform our pre-opening obligations under the Franchise
Agreement and your first Franchised Business is open. Once we complete this obligation and you are open, you must
immediately pay us all initial fees we deferred.
This Disclosure Document contains a summary only of certain material provisions of the franchise
agreement. The contract or agreement should be referred to for a statement of all rights, conditions, restrictions and
obligations of both the franchisor and the franchisee.
ADDENDUM TO THE STRETCH LAB FRANCHISE AGREEMENT
REQUIRED FOR HAWAII FRANCHISEES
This Addendum to the Stretch Lab Franchise Agreement dated ________________. (“Franchise
Agreement”) between Stretch Lab Franchise, LLC (“we,” “us,” or “our”) and
_______________________________ (“Franchisee,” “you,” or “your”) is entered into simultaneously with the
execution of the Franchise Agreement.
1. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the
2. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in
full force and effect.
3. Notwithstanding anything contained in the Franchise Agreement or Area Development Agreement to the
contrary, you do not have to pay us the Initial Franchise Fee until we perform our pre-opening obligations
under the Franchise Agreement and your first Franchised Business is open. Once we complete this
obligation and you are open, you must immediately pay us all initial fees we deferred.
STRETCH LAB FRANCHISE, LLC: FRANCHISEE:
By: By:
Print Name: Print Name:
Title: Title:
ILLINOIS
1. The “Summary” section of Item 17(v), entitled Choice of forum, is deleted in its entirety.
2. The “Summary” section of Item 17(w), entitled Choice of law, is deleted and replaced with the following:
Illinois law applies.
3. Illinois law governs the agreement(s) between the parties to this franchise.
4. Any provision in a franchise agreement that designates jurisdiction or venue in a forum outside of Illinois is
void, provided that arbitration may take place outside of Illinois. 815 ILCS 705/4 (West 2010)
5. Any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive
compliance with any provision of the Illinois Franchise Disclosure Act or any other law of Illinois is void. 815 ILCS
705/41 (West 2010)
6. Based upon our financial condition, the Illinois Attorney General’s Office has required a financial
assurance. We have obtained a surety bond in the amount of $180,000. If we fail to strictly comply with all
applicable provisions of, and all orders, rules, and regulations issued pursuant to the Illinois Franchise Disclosure
Law, we may become liable for the payment of the bond sum to the State of Illinois for the use and benefit of any
person(s) having a claim under the conditions of the bond obligation.
ILLINOIS
AMENDMENT TO FRANCHISE AGREEMENT AND DEVELOPMENT AGREEMENT
The Franchise Agreement and Development Agreement are specifically amended as follows:
In recognition of the requirements of the Illinois Franchise Disclosure Act of 1987 (as amended), the parties
to the attached Franchise Agreement (“Agreement”) agree as follows:
1. Governing Law.
a. Section 16.7 of the Franchise Agreement, “CHOICE OF LAWS,” is deleted in its entirety and replaced
with the following:
EXCEPT TO THE EXTENT GOVERNED BY THE UNITED STATES TRADEMARK ACT OF

1946 (LANHAM ACT, 15 U.S.C. SECTIONS 1051 ET SEQ.), THE FEDERAL ARBITRATION
ACT, OR OTHER FEDERAL LAW, THIS AGREEMENT AND THE RIGHTS OF THE PARTIES
HEREUNDER SHALL BE INTERPRETED AND CONSTRUED UNDER THE LAWS OF THE
STATE OF ILLINOIS.
b. Section 21(A) of the Development Agreement is hereby amended to provide that Illinois law governs
the agreements between the parties to this franchise.
2. Section 4 of the Illinois Franchise Disclosure Act provides that any provision in a franchise
agreement/development agreement that designates jurisdiction or venue outside of the State of Illinois is
void. However, a franchise agreement/development agreement may provide for arbitration in a venue
outside of Illinois.
3. Section 41 of the Illinois Franchise Disclosure Act provide that any condition, stipulation or provision
purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise
Disclosure Act or any other law of Illinois is void. Accordingly, insofar as the Franchise Agreement
requires you to waive your rights under the Illinois franchise law, these requirements are deleted from the
Franchise Agreement. This provision will not prevent the franchisor from requiring you to sign a general
release of claims as part of a negotiated settlement of a dispute or actual lawsuit filed under any of the
provisions of the Act, nor shall it prevent the arbitration of any claim pursuant to the provisions of Title
9 of the United States Code.
4. The following is added to Section 5.1: Based upon our financial condition, the Illinois Attorney General’s
Office has required a financial assurance. We have obtained a surety bond in the amount of $180,000. If
we fail to strictly comply with all applicable provisions of, and all orders, rules, and regulations issued
pursuant to the Illinois Franchise Disclosure Law, we may become liable for the payment of the bond sum
to the State of Illinois for the use and benefit of any person(s) having a claim under the conditions of the
bond obligation.
IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Amendment,
understands and consents to be bound by all of its terms.
Stretch Lab Franchise, LLC [INSERT FRANCHISEE NAME]
By: By:
Title: Title:
MARYLAND
1. The “Summary” section of Item 17(h) entitled “Cause” defined (defaults which cannot be cured), is
amended by adding the following:
The Franchise Agreement provides for termination upon your bankruptcy. This provision might
not be enforceable under federal bankruptcy law (11 U.S.C. Sections 101 et seq.), but we will
enforce it to the extent enforceable.
2. The “Summary” sections of Item 17(c) entitled Requirements for renewal or extension, and Item
17(m) entitled Conditions for franchisor approval of transfer, are amended by adding the
following:
The general release required as a condition of renewal, sale, transfer or assignment of the Franchise
Agreement shall not apply to any liability under the Maryland Franchise Registration and Disclosure
Law.
3. The following are added to the end of the chart in Item 17:
Despite any contradicting provision in the Franchise Agreement, you have 3 years from the date on
which we grant you the franchise to bring a claim under the Maryland Franchise Registration and
Disclosure Law.
A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise
Registration and Disclosure Law.
5. The following is added to the end of Item 5:
The Maryland Securities Commissioner has required us to obtain a surety bond because of our financial
condition. We have obtained a surety bond in the sum of $125,000, and that bond is on file with the
Maryland Securities Division. If we fail to strictly comply with all applicable provisions of, and all orders,
rules, and regulations issued pursuant to, the Maryland Franchise Registration and Disclosure Law, we
may become liable for the payment of the bond sum to the State of Maryland for the use and benefit of
any person(s) that have a claim under the conditions of the bond obligation.
MARYLAND
AMENDMENT TO FRANCHISE AGREEMENT
The Franchise Agreement is specifically amended as follows:
Any provision requiring Franchisee to execute a general release of any and all claims against Franchisor shall not
apply to claims arising under the Maryland Franchise Registration and Disclosure Law.
Termination upon bankruptcy of the Franchisee might not be enforceable under federal bankruptcy law (11 U.S.C.
Sections 101 et seq.), but Franchisor intends to enforce it to the extent enforceable.
The Maryland Securities Commissioner has required us to obtain a surety bond because of our financial condition.
We have obtained a surety bond in the sum of $125,000, and that bond is on file with the Maryland Securities
Division. If we fail to strictly comply with all applicable provisions of, and all orders, rules, and regulations issued
pursuant to, the Maryland Franchise Registration and Disclosure Law, we may become liable for the payment of
the bond sum to the State of Maryland for the use and benefit of any person(s) that have a claim under the
conditions of the bond obligation.
Sections 17.3 and 17.4 shall be supplemented by the following additional language:
PROVIDED, HOWEVER, THAT THIS LIMITATION OF CLAIMS SHALL NOT

ACT TO REDUCE THE THREE (3) YEAR STATUTE OF LIMITATIONS
AFFORDED FRANCHISEE FOR BRINGING A CLAIM UNDER THE MARYLAND
FRANCHISE REGISTRATION AND DISCLOSURE LAW.
Section 14-226 of the Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a
prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of purchasing a
franchise. Any provision of this Franchise Agreement which requires a prospective franchisee to disclaim the
occurrence and/or non-occurrence of acts that would constitute a violation of the Maryland Franchise Registration
and Disclosure Law in order to purchase a franchise are not intended to, nor shall they act as a release, estoppel or
waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
Stretch Lab Franchise, LLC Franchisee:
By: By:
Title: Title:
MARYLAND
AMENDMENT TO DISCLOSURE QUESTIONNAIRE
The Franchisee Disclosure Questionnaire is specifically amended as follows:
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law (as
amended), Md. Code Bus. Reg. Sections 14-201 through 14-233, the following paragraph is added to the Franchisee
Disclosure Questionnaire:
Maryland Franchise Registration and Disclosure Law prohibits a franchisor from requiring a
prospective franchisee to assent to any release, estoppel, or waiver of liability as a condition of
purchasing a franchise. Representations in this questionnaire are not intended to nor shall they act
as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration
and Disclosure Law.
Name of Franchisee/Applicant
Date: ___________________________ ______
Signature
Name and Title of Person Signing
MICHIGAN
The following disclosures are required by the State of Michigan:
1. THE STATE OF MICHIGAN PROHIBITS CERTAIN UNFAIR PROVISIONS THAT ARE

SOMETIMES IN FRANCHISE DOCUMENTS. IF ANY OF THE FOLLOWING PROVISIONS ARE IN THESE
FRANCHISE DOCUMENTS, THE PROVISIONS ARE VOID AND CANNOT BE ENFORCED AGAINST
YOU.
Each of the following provisions is void and unenforceable if contained in any documents related to a
franchise:
A. A prohibition on the right of a franchisee to join an association of franchisees.
B. A requirement that a franchisee assent to a release, assignment, novation, waiver or estoppel which
deprives a franchisee of rights and protections provided in the Michigan Franchise Investment Act. This shall not
preclude a franchisee, after entering into a franchise agreement, from settling any and all claims.
C. A provision that permits a franchisor to terminate a franchise prior to the expiration of this term
except for good cause. Good cause shall include the failure of the franchisee to comply with any lawful provision
of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable
opportunity, which in no event need be more than 30 days, to cure such failure.
D. A provision that permits a franchisor to refuse to renew a franchise without fairly compensating the
franchisee by repurchase or other means for the fair market value at the time of expiration of the franchisee’s
inventory, supplies, equipment, fixtures and furnishings. Personalized materials which have no value to the
franchisor and inventory, supplies, equipment, fixtures and furnishings not reasonably required in the conduct of the
franchise business are not subject to compensation. This subsection applies only if: (i) the term of the franchise is
less than 5 years, and (ii) the franchisee is prohibited by the franchise or other agreement from continuing to conduct
substantially the same business under another trademark, service mark, trade name, logotype, advertising or other
commercial symbol in the same area subsequent to the expiration of the franchise or the franchisee does not receive
at least 6 months advance notice of franchisor’s intent not to renew the franchise.
E. A provision that permits the franchisor to refuse to renew a franchise on terms generally available
to other franchisees of the same class or type under similar circumstances. This section does not require a renewal
provision.
F. A provision requiring that arbitration or litigation be conducted outside this state. This shall not
preclude the franchisee from entering into an agreement, at the time of arbitration, to conduct arbitration at a location
outside this state.
G. A provision which permits a franchisor to refuse to permit a transfer of ownership of a franchise,

except for good cause. The subdivision does not prevent a franchisor from exercising a right of first refusal to
purchase the franchise. Good cause shall include, but is not limited to:
1) The failure of the proposed transferee to meet the franchisor’s then-current reasonable
qualifications or standards.
2) The fact that the proposed transferee is a competitor of the franchisor or subfranchisor.
3) The unwillingness of the proposed transferee to agree in writing to comply with all lawful
obligations.
4) The failure of the franchisee or proposed transferee to pay any sums owing to the franchisor
or to cure any default in the franchise agreement existing at the time of the proposed transfer.
H. A provision that requires the franchisee to resell to the franchisor items that are not uniquely
identified with the franchisor. This subdivision does not prohibit a provision that grants to a franchisor a right of
first refusal to purchase the assets of a franchise on the same terms and conditions as a bona fide third party willing
and able to purchase those assets, nor does this subdivision prohibit a provision that grants the franchisor the right to
acquire the assets of a franchise for the market or appraised value of such assets if the franchisee has breached the
lawful provisions of the franchise agreement and has failed to cure the breach in the manner provided in subdivision
(C).
I. A provision which permits the franchisor to directly or indirectly convey, assign or otherwise
transfer its obligations to fulfill contractual obligations to the franchisee unless a provision has been made for
providing the required contractual services.
2. If the franchisor’s most recent financial statements are unaudited and show a net worth of less than
$100,000.00 the franchisor shall, at the request of a franchisee, arrange for the escrow of initial investment and other
funds paid by the franchisee until the obligations to provide real estate, improvements, equipment, inventory, training
or other items included in the franchise offering are fulfilled. At the option of the franchisor, a surety bond may be
provided in place of escrow.
3. THE FACT THAT THERE IS A NOTICE OF THIS OFFERING ON FILE WITH THE ATTORNEY
GENERAL DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENFORCEMENT BY THE
ATTORNEY GENERAL.
Any questions regarding this notice should be direct to:
State of Michigan
Consumer Protection Division
Attention: Franchise
670 G. Mennen Williams Building
525 West Ottawa
Lansing, MI 48933
(517) 373-1160
Note: Despite paragraph F above, we intend to enforce fully the provisions of the arbitration section
contained in the Franchise Agreement. We believe that paragraph F is unconstitutional and cannot preclude us from
enforcing our arbitration section. You acknowledge that we will seek to enforce this section as well.
MINNESOTA
In accordance with the requirements of the state of Minnesota the following disclosure should be read in
conjunction with the Disclosure Document. Any inconsistency with the information contained in the Disclosure
Document will be resolved in favor of this Minnesota Addendum.
1. Item 5 Initial Fees is supplemented with the following:
Due to our financial condition, please be advised that we have secured a surety bond in the amount of
$120,000 to demonstrate our financial capability to fulfill our pre-opening obligations to
franchisees/developers under the Franchise/Development Agreement, as applicable, that are subject to the
jurisdiction of the Minnesota Franchise Act and corresponding regulations, which is on file with the
Securities Division of the Minnesota Department of Commerce.
2. Item 13 Trademarks is amended by adding the following:
As required by the Minnesota Franchise Act, Minn. Stat. Sec. 80C.12(g), we will reimburse you for
any of your costs incurred in the defense of your right to use the Marks, so long as you were using
the Marks in the manner authorized by us, and so long as we are timely notified of the claim and
are given the right to manage the defense of the claim including the right to compromise, settle or
otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
2. Item 17 Renewal, Termination, Transfer and Dispute Resolution is amended by adding the following:
A. Renewal and Termination

With respect to franchises governed by Minnesota law, we will comply with Minn. Stat.
Sec. 80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that you be
given 90 days’ notice of termination (with 60 days to cure) and 180 days’ notice for non-
renewal of the Agreement.
B. Choice of Forum
Nothing in the Disclosure Document or Agreement can abrogate or reduce any of your
rights as provided for in Minnesota Statutes 1984, Chapter 80C, or your rights to any
procedure, forum, or remedies provided for by the laws of the jurisdiction.
C. Releases
A general release shall not relieve any person from liability imposed by the Minnesota
Franchise Law, Minn. Stat., Chapter 80C, Sections 80C.22.
These franchises have been registered under the Minnesota Franchise Act, registration does not constitute
approval, recommendation, or endorsement by the Commissioner of Commerce of Minnesota or a finding by the
Commissioner that the information provided herein is true, complete, and not misleading.
The Minnesota Franchise Act makes it unlawful to offer or sell any franchise in this state which is subject to
registration without first providing to the franchisee, at least 7 days prior to the execution by the prospective
franchisee of any binding franchise or other agreement, or at least 7 days prior to the payment of any consideration,
by the franchisee, whichever occurs first, a copy of this Disclosure Document, together with a copy of all proposed
agreements relating to the franchise. This Disclosure Document contains a summary only of certain material
provisions of the Franchise Agreement. The contract or agreement should be referred to for an understanding of all
rights and obligations of both the franchisor and the franchisee.
MINNESOTA
The Franchise Agreement is specifically amended as follows:
In recognition of the Minnesota Franchise Law, Minn. Stat., Chapter 80C, Sections 80C.01 through 80C.22, and the
Rules and Regulations promulgated pursuant thereto by the Minnesota Commission of Securities, Minnesota Rule
2860.4400, et seq., the parties to the attached Franchise Agreement (“Agreement”) agree as follows:
With respect to franchises governed by Minnesota law, Franchisor will comply with Minn. Stat. Sec.
80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that Franchisee be given
90 days’ notice of termination (with 60 days to cure) and 180 days’ notice of non-renewal of the
Agreement.
As required by Minnesota Franchise Act, Minn. Stat. Sec. 80C.12(g), Franchisor will reimburse
Franchisee for any costs incurred by Franchisee in the defense of Franchisee’s right to use the Marks,
so long as Franchisee was using the Marks in the manner authorized by Franchisor, and so long as
Franchisor is timely notified of the claim and is given the right to manage the defense of the claim
including the right to compromise, settle or otherwise resolve the claim, and to determine whether to
appeal a final determination of the claim.
With respect to franchises governed by Minnesota law, Franchisor will comply with Minn. Stat. Sec.
80C.14, Subds. 3, 4 and 5 which require, except in certain specified cases, that Franchisee be given
90 days’ notice of termination (with 60 days to cure) and 180 days’ notice of non-renewal of the
Agreement.
A general release shall not relieve any person from liability imposed by the Minnesota Franchise
Law, Minn. Stat., Chapter 80C, Section 80C.22.
The franchisee cannot consent to franchisor obtaining injunctive relief. The franchisor may seek
injunctive relief. See Minn. Rule 2860.4400J. A court will determine if a bond is required.
Nothing in the Disclosure Document or Agreement can abrogate or reduce any of your rights as
provided for in Minnesota Statutes 1984, Chapter 80C, or your rights to any procedure, forum, or
remedies provided for by the laws of the jurisdiction.
Any claims brought pursuant to the Minnesota Franchises Act, § 80.C.01 et seq. must be brought
within 3 years after the cause of action accrues. To the extent that any provision of the Franchise
Agreement imposes a different limitations period, the provision of the Act shall control.
By: By:
Title: Title:
NEW YORK
The Disclosure Document is amended as follows:
The following information is added to the cover page of the Franchise Disclosure Document:
INFORMATION COMPARING FRANCHISORS IS AVAILABLE. CALL THE STATE

ADMINISTRATORS LISTED IN EXHIBIT A OR YOUR PUBLIC LIBRARY FOR SOURCES OF
INFORMATION. REGISTRATION OF THIS FRANCHISE BY NEW YORK STATE DOES NOT
MEAN THAT NEW YORK STATE RECOMMENDS IT OR HAS VERIFIED THE
INFORMATION IN THIS FRANCHISE DISCLOSURE DOCUMENT. IF YOU LEARN THAT
ANYTHING IN THE FRANCHISE DISCLOSURE DOCUMENT IS UNTRUE, CONTACT THE
FEDERAL TRADE COMMISSION AND NEW YORK STATE DEPARTMENT OF LAW,
BUREAU OF INVESTOR PROTECTION AND SECURITIES, 120 BROADWAY, 23RD FLOOR,
NEW YORK, NEW YORK 10271. THE FRANCHISOR MAY, IF IT CHOOSES, NEGOTIATE
WITH YOU ABOUT ITEMS COVERED IN THE FRANCHISE DISCLOSURE DOCUMENT.
HOWEVER, THE FRANCHISOR CANNOT USE THE NEGOTIATING PROCESS TO PREVAIL
UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS
FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
The following is added at the end of Item 3:
Except as provided above, with regard to the franchisor, its predecessor, a person identified in Item 2, or an
affiliate offering franchises under the franchisor’s principal trademark:
A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony,
a violation of a franchise, antitrust, or securities law, fraud, embezzlement, fraudulent conversion,
misappropriation of property, unfair or deceptive practices, or comparable civil or misdemeanor allegations.
B. No such party has pending actions, other than routine litigation incidental to the business, which are
significant in the context of the number of franchisees and the size, nature or financial condition of the
franchise system or its business operations.
C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge or, within the
10 year period immediately preceding the application for registration, has been convicted of or pleaded nolo
contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a
franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of
property; or unfair or deceptive practices or comparable allegations.
D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the
franchise, or under a Federal, State, or Canadian franchise, securities, antitrust, trade regulation or trade
practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is
subject to any currently effective order of any national securities association or national securities exchange,
as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from
membership in such association or exchange; or is subject to a currently effective injunctive or restrictive
order relating to any other business activity as a result of an action brought by a public agency or department,
including, without limitation, actions affecting a license as a real estate broker or sales agent.
The following is added to the end of Item 4:
Neither the franchisor, its affiliate, its predecessor, officers, or general partner during the 10-year period
immediately before the date of the offering circular: (a) filed as debtor (or had filed against it) a petition to
start an action under the U.S. Bankruptcy Code; (b) obtained a discharge of its debts under the bankruptcy
code; or (c) was a principal officer of a company or a general partner in a partnership that either filed as a
debtor (or had filed against it) a petition to start an action under the U.S. Bankruptcy Code or that obtained
a discharge of its debts under the U.S. Bankruptcy Code during or within 1 year after that officer or general
partner of the franchisor held this position in the company or partnership.
The following is added to the end of Item 5:
The initial franchise fee constitutes part of our general operating funds and will be used as such in our
discretion.
The following is added to the end of the “Summary” sections of Item 17(c), titled “Requirements for franchisee to
renew or extend,” and Item 17(m), entitled “Conditions for franchisor approval of transfer”:
However, to the extent required by applicable law, all rights you enjoy and any causes of action arising in
your favor from the provisions of Article 33 of the General Business Law of the State of New York and the
regulations issued thereunder shall remain in force; it being the intent of this proviso that the non-waiver
provisions of General Business Law Sections 687.4 and 687.5 be satisfied.
The following language replaces the “Summary” section of Item 17(d), titled “Termination by franchisee”:
You may terminate the agreement on any grounds available by law.
The following is added to the end of the “Summary” section of Item 17(j), titled “Assignment of contract by
franchisor”:
However, no assignment will be made except to an assignee who in good faith and judgment of the
franchisor, is willing and financially able to assume the franchisor’s obligations under the Franchise
Agreement.
The following is added to the end of the “Summary” sections of Item 17(v), titled “Choice of forum”, and Item
17(w), titled “Choice of law”:
The foregoing choice of law should not be considered a waiver of any right conferred upon the franchisor
or upon the franchisee by Article 33 of the General Business Law of the State of New York.
NORTH DAKOTA
1. The following language is added to the “Summary” section of Item 17(c) entitled Requirements for you to
renew or extend and Item 17(m) entitled Conditions for our approval of a transfer:
The execution of a general release upon renewal, assignment or termination will be inapplicable to
franchises operating under the North Dakota Franchise Investment Law.
2. The applicable portion of the “Summary” section of Item 17(i) entitled Your obligations on
termination/non-renewal is amended to read as follows:
If we prevail in any enforcement action you will pay all damages and costs we incur in
enforcing the termination provisions of the Franchise Agreement
3. The following is added to the “Summary” section of Item 17(u) entitled Dispute resolution by
arbitration or mediation:
To the extent required by the North Dakota Franchise Investment Law (unless such
requirement is preempted by the Federal Arbitration Act), arbitration will be at a site to
which we and you mutually agree.
4. The following is added to the “Summary” section of Item 17(r) entitled Non-competition
covenants after the franchise is terminated or expires:
Covenants not to compete upon termination or expiration of the Franchise Agreement are
generally unenforceable in the State of North Dakota except in limited instances as provided
by law.
5. The following is added to the “Summary” section of Item 17(v) entitled Choice of forum:
However, to the extent allowed by the North Dakota Franchise Investment Law, you may
commence any cause of action against us in any court of competent jurisdiction, including
the state or federal courts of North Dakota.
6. The “Summary” section Item 17(w) entitled Choice of law is deleted and replaced with the
following:
North Dakota law applies.
The North Dakota Securities Department has required us to obtain a surety bond because
of our financial condition. We have obtained a surety bond in the sum of $25,000, and
that bond is on file with the North Dakota Securities Department. If we fail to strictly
comply with all applicable orders, rules, and regulations in the State of North Dakota,
we may become liable for the payment of the bond sum to the State of North Dakota for
the use and benefit of any person(s) that have a claim under the conditions of the bond
obligation.
NORTH DAKOTA
1. The following is added to Section 3.2 of the Franchise Agreement, “RENEWAL” and Section 14 of the
Franchise Agreement “TRANSFER OF INTEREST”:
The execution of a general release upon renewal, assignment or termination will be

inapplicable to franchises operating under the North Dakota Franchise Investment Law.
2. The following is added to Section 16.6 of the Franchise Agreement, "CHOICE OF FORUM" and Section
22 of the Development Agreement:
However, to the extent allowed by the North Dakota Franchise Investment Law, Franchisee may
commence any cause of action against Franchisor in any court of competent jurisdiction, including
the state or federal courts of North Dakota.
Franchisor acknowledges that pursuant to Section 51-19-09 of the North Dakota Franchise
Investment Law, all provisions in the Disclosure Document requiring Franchisee to consent to the
jurisdiction of courts outside of North Dakota are hereby void.
3. The following is added to Section 16.4 of the Franchise Agreement, “MANDATORY BINDING
ARBITRATION” and Section 22(B) of the Development Agreement:
To the extent required by the North Dakota Franchise Investment Law (unless such
requirement is preempted by the Federal Arbitration Act), arbitration and/or mediation will
be at a site not remote from Franchisee’s place of business, to which Franchisor and
Franchisee mutually agree.
4. Section 18 of the Franchise Agreement, “ACKNOWLEDGMENTS” is amended by the addition of the

following language to the original language that appears therein to read as follows:
Franchisee acknowledges that Franchisee received a copy of this Agreement, the

attachments hereto, if any, and agreements relating thereto, if any, at least seven (7) days
prior to the date on which this Agreement was executed.
5. Section 13.1 of the Franchise Agreement and Section 11 of the Development Agreement (regarding post-
term restrictions) are amended by the addition of the following language to the original language that appears
therein:
Covenants not to compete upon termination or expiration of the Franchise Agreement are
generally unenforceable in the State of North Dakota except in limited instances as provided
by law.
7. Section 16 of the Franchise Agreement and Section 21 of the Development Agreement are hereby
amended to provide that North Dakota law governs the agreements between the parties to this
franchise. Further, Section 16.1 of the Franchise Agreement, “GOVERNING LAW” is deleted in
its entirety and replaced with the following:
EXCEPT TO THE EXTENT GOVERNED BY THE UNITED STATES TRADEMARK

ACT OF 1946 (LANHAM ACT, 15 U.S.C. SECTIONS 1051 ET SEQ.), THE FEDERAL
ARBITRATION ACT, OR OTHER FEDERAL LAW, THIS AGREEMENT AND THE
RIGHTS OF THE PARTIES HEREUNDER SHALL BE INTERPRETED AND
CONSTRUED UNDER THE LAWS OF THE STATE OF NORTH DAKOTA.
8. Section 16.8 of the Franchise Agreement and Section 22(J) of the Development Agreement requiring
waiver of jury trial, and Section 16.7 of the Franchise Agreement and Section 22(I) of the
Development Agreement requiring waiver of exemplary and punitive damages, are hereby deleted
in their entirety.
9. Section 16.12 of the Franchise Agreement and Section 22(H) of the Development Agreement shall be
supplemented by the following additional language:
Provided, however, that this limitation of claims shall not act to reduce the applicable statute
of limitations afforded franchisee for bringing a claim under the applicable laws of North
Dakota
10. The North Dakota Securities Department has required us to obtain a surety bond because of our
financial condition. We have obtained a surety bond in the sum of $25,000, and that bond is on
file with the North Dakota Securities Department. If we fail to strictly comply with all applicable
orders, rules, and regulations in the State of North Dakota, we may become liable for the
payment of the bond sum to the State of North Dakota for the use and benefit of any person(s)
that have a claim under the conditions of the bond obligation.
By: By:
Title: Title:
RHODE ISLAND
The following language is added to Item 17(v) entitled Choice of forum:
, except as otherwise required by the Rhode Island Franchise Investment Act
RHODE ISLAND
In recognition of the requirements of the Rhode Island Franchise Investment Act (Section 19-28.1-14), the
parties to the attached Franchise Agreement agree as follows:
Section 17.4, “CHOICE OF FORUM” is amended by adding the following:
§19-24.1-14 of the Rhode Island Franchise Investment Act provides that “A provision in a
franchise agreement restricting jurisdiction or venue to a forum outside this state or
requiring the application of the laws of another state is void with respect to a claim
otherwise enforceable under this Act.”
By: By:
Title: Title:
SOUTH DAKOTA
The South Dakota Department of Labor & Regulation, Division of Insurance – Securities Regulation has
required us to obtain a surety bond because of our financial condition. We have obtained a surety bond
in the sum of $135,000, and that bond is on file with the South Dakota Department of Labor & Regulation.
If we fail to strictly comply with all applicable provisions of, and all orders, rules, and regulations issued
pursuant to South Dakota Law, we may become liable for the payment of the bond sum to the State of
South Dakota for the use and benefit of any person(s) that have a claim under the conditions of the bond
obligation.
VIRGINIA
In recognition of the restrictions contained in Section 13.1-564 of the Virginia Retail Franchising Act, the
Franchise Disclosure Document for Stretch Lab Franchise, LLC for use in the Commonwealth of Virginia shall
be amended as follows:
The following statement is added to Item 17.h:
“Pursuant to Section 13.1-564 of the Virginia Retail Franchising Act, it is unlawful for a franchisor to
cancel a franchise without reasonable cause. If any ground for default or termination stated in the
franchise agreement does not constitute “reasonable cause”, as that term may be defined in the Virginia
Retail Franchising Act or the laws of Virginia, that provision may not be enforceable.”
WASHINGTON
In recognition of the requirements of the Washington Franchise Investment Protection Act (RCW
19.100.180), the Franchise Disclosure Document is revised as follows:
The following paragraphs are added at the end of Item 17:
The state of Washington has a statute, RCW 19.100.180, which may supersede the Franchise
Agreement in your relationship with the franchisor including the areas of termination and renewal
of your franchise. There may also be court decisions which may supersede the franchise agreement
in your relationship with the franchisor including the areas of termination and renewal of your
franchise.
In any mediation, arbitration, or litigation involving a franchise purchased in Washington, the site
thereof shall be either in the state of Washington, or in a place mutually agreed upon at the time of
the arbitration, or as determined by the mediator, arbitrator, or judge, as applicable.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection
Act, Chapter 19.100 RCW shall prevail.
A release or waiver of rights executed by a franchisee shall not include rights under the Washington
Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after
the agreement is in effect and where the parties are represented by independent counsel. Provisions
such as those which unreasonably restrict or limit the statute of limitations period for claims under
the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor’s reasonable estimated or
actual costs in effecting a transfer.
The following sentence is added to the “Remarks” column of the Item 6 chart for the fee titled “Indemnification”:
All indemnification obligations will be subject to the applicable laws of the state of Washington.
The following sentence is added to the end of the first paragraph in Item 11, Section F titled “Computer Hardware
– Hardware and Software”:
As a result of Franchisor’s independent access to your computer system, there may be an increased risk
of disclosure of your sensitive client/customer, employee, or company information resulting from cyber
security events and/or data breaches.
The “Summary” section of Item 17(c) entitled Requirements for renewal or extension of term is amended by
adding the following:
Any general release you sign shall not apply to the extent prohibited by applicable Washington state
law.
The “Summary” section of Item 17(d) entitled Termination by franchisee is amended by adding the following:
Franchisee may terminate the franchise agreement under any grounds permitted by applicable
Washington state law.
The “Summary” section of Item 17(o) entitled Franchisor’s option to purchase franchisee’s business is
amended by adding the following:
Pursuant to RCW 19.100.180(2)(i) and (j), Franchisor may be required to: (i) compensate franchisee for the
fair market value of the franchise upon expiration in the event Franchisor refuses to renew the franchise; and
(ii) purchase from franchisee at fair market value certain of franchisee’s inventory and supplies required by
law. To the extent required by law, RCW 19.100.180(2)(i) and (j) will supersede contrary terms in the
The “Summary” section of Item 17(u) entitled Dispute resolution by arbitration or mediation is amended by
adding the following:
The location of mediation will be subject to applicable state law.
The following paragraph is added to the end of Item 5 and Item 17:
In Washington, the Washington Department of Financial Institutions has required us to obtain a

surety bond in the amount of $100,000, because of our limited financial condition and limited
operating history. If we fail to strictly comply with all applicable provisions of, and all orders,
rules, and regulations issued pursuant to the Act, Chapter 19.100 RCW, we may become liable
for the payment of the bond sum to the State of Washington for the use and benefit of any
person(s) have a claim under the conditions of the bond obligation.
WASHINGTON
In recognition of the requirements of the Washington Franchise Investment Protection Act (RCW
19.100.180), the parties to the attached Franchise Agreement and/or Development Agreement agree as follows:
The state of Washington has a statute, RCW 19.100.180, which may supersede the Franchise
Agreement in your relationship with the franchisor including the areas of termination and renewal
of your franchise. There may also be court decisions which may supersede the franchise agreement
in your relationship with the franchisor including the areas of termination and renewal of your
franchise.
In any mediation, arbitration, or litigation involving a franchise purchased in Washington, the site
thereof shall be either in the state of Washington, or in a place mutually agreed upon at the time of
the arbitration, or as determined by the mediator, arbitrator, or judge, as applicable.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection
Act, Chapter 19.100 RCW shall prevail.
A release or waiver of rights executed by a franchisee shall not include rights under the Washington
Franchise Investment Protection Act except when executed pursuant to a negotiated settlement after
the agreement is in effect and where the parties are represented by independent counsel. Provisions
such as those which unreasonably restrict or limit the statute of limitations period for claims under
the Act, rights or remedies under the Act such as a right to a jury trial may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor’s reasonable estimated or
actual costs in effecting a transfer.
The Washington Department of Financial Institutions has required us to obtain a surety bond in
the amount of $100,000, because of our financial condition. If we fail to strictly comply with all
applicable provisions of, and all orders, rules, and regulations issued pursuant to the Act, Chapter
19.100 RCW, we may become liable for the payment of the bond sum to the State of Washington
for the use and benefit of any person(s) that have a claim under the conditions of the bond
obligation.
By: By:
Title: Title:
Exhibit H
LIST OF FRANCHISEES AND THEIR OUTLETS AS OF DECEMBER 31, 2020
Franchisee Address City State ZIP Code Phone Number

Wamsley, 2524 S. San Tan Gilbert Arizona 85295 971-271-7984
DeeDee Village Parkway
Suite# 103
Gage, Jennifer 4290 E. Indian Phoenix Arizona 85018 480-687-0777
School Rd,
Suite 121
Gage, Jennifer 20511 N. Scottsdale Arizona 85255 480-687-0777
Hayden Rd
Gage, Jennifer 8787 N. Scottsdale Arizona 85253 480-687-0777
Scottsdale rd,
Suite 218
Bandi, Ankita 1080 Monroe Albany California 94706 510-822-2500
St. Suite 3B
Son, Jerrold 8126 East Santa Anaheim California 92808 714-706-0888
Ana Canyon
Road, Suite 169
Lincoln, 217 Primrose Burlingame California 94010 415-515-9744
Meredith Road, Suite A-
3/103
Kemp, John 2125 Campbell California 95008 408.893.9952
Winchester
Blvd, Suite
100B
Bilgin, Mesut 1905 Calle Carlsbad California 92009 832-517-9579
Barcelona, Suite
218
Christensen, 281 E. 17th Costa Mesa California 92627 949-548-5500
Denise Street
Patel, Shivam 710 S Allied El Segundo California 90245 323-379-3133
Way
Coronel, Oscar 18127 Granada Hills California 91344 818-672-6294
Chatsworth
Street
Flores, Jeff 228 Bon Air Greenbrae California 94904 415-448-5572
Center
Hartman, Kelly 17585 B Irvine California 92614 949-346-2870
Harvard Avenue
Yee, Darrin 807 Spectrum Irvine California 92618 (949) 713-1361
Center Drive
Kritzstein, Bev 30271 Golden Laguna Niguel California 92677 949-441-7555
Lantern, Suite C
Hameed, Aamir 8317 Beverly Los Angeles California 90048 832-659-4796
Blvd
Burnham, Alex 800 Redwood Mill Valley California 94941 415-649-6038
Highway Suite
614
Kritzstein, Bev 26012 Mission Viejo California 92692 949-441-7555
Marguerite
Parkway Suite E
Rincon, 1046 Coast Montecito California 93108 949-633-2082
Danielle Village Rd,
Suite E
Lincoln, 555 San Mountain View California 94040 415-515-9744
Meredith Antonio Road,
SUITE 41
Sethi, Harpreet 2628 San Newport Beach California 92660 949-535-0836
Miguel Drive
Kim, Janeth 1010 University San Diego California 92103 619-992-4688
Ave Suite
C203B
Linda, Thomas 7875 Highlands San Diego California 92129 619-786-7558
Village Place,
Suite B104
Onalfo, Tammy 5687 Silver San Jose California 95138 (408) 505-5848
Creek Valley
Rd, Suite 40-50
Elton, Byron 808 11th St Santa Monica California 90403 (310) 450-2510
Cohen, Angela 437 S, Hwy 101 Solana Beach California 92075 619.316.4243
Suite 108
Hameed, Aamir 13039 Ventura Studio City California 91604 832-659-4796
Blvd
Yee, Darrin 33295 Temecula Temecula California 92592 (949) 713-1361
Pkwy, Suite A-1
Martinez, 2911 El Camino Tustin California 92782 714-274-0822
Liberato Real
Elton, Byron 27093 Valencia California 91355 (310) 450-2510
MCBEAN
PARKWAY,
Elton, Byron 512 Rose Ave Venice California 90291 (310) 450-2510
Colb, Marci 1226 W. 38th Denver Colorado 80211 720-419-2420
Avenue
Silverman, Dina 3201 E 2nd Denver Colorado 80206 720-617-2005
Ave., Suite 103
Silverman, Dina 5022 E. Denver Colorado 80222 720-617-2005
Hampden Ave.
Jacobson, Luke 10841 S, Parker Colorado 80134 720-909-8520
Crossroads Dr.
Suite 6
Hicks, Andy 85 Mill Plain Fairfield Connecticut 06824 475-395-2996
Road
Kanzer, Adam 86 Main Street New Canaan Connecticut 06840 516-528-2109
Hicks, Andy 287 Post Rd Westport Connecticut 06880 475-395-2996
East Shopping
center - 275
Post Road East
Rogers, Walter 2335 S Clermont Florida 34711 407-246-1950-
Highway 27
Peterson, Scott 10801 Estero Florida 33928 239-431-6561
Corkscrew
Novak, Aaron 13475 Atlantic Jacksonville Florida 32225 904-536-5105
Blvd., Suite 27
Novak, Aaron 11111 San Jose Jacksonville Florida 32223 904-536-5105
Blvd
Lazenby, Soosie 10423 Ulmerton Largo Florida 33771 727-647-4451
Road
Peterson, Scott 3369 Pine Ridge Naples Florida 34109 239-431-6561
Road Suite 205
Eick, Herm 200 N Orlando Winter Park Florida 32789 407-616-4376
Ave Ste 104
Robbins, Rob 2385 Peachtree Atlanta Georgia 30305 404-480-0989
Rd. NE Suite
A2CD
McCullough, 5525 Abercorn Savannah Georgia 31405 404-315-9001
Janet (Happy) St. Suite #90
Ely, Suzanne 119 S Broadway Boise Idaho 83702 208.841.5391
Ave
Cox, Grant 2007 Tea Olive Coeur d'Alene Idaho 83814 208-625-8004
Lane, North
Building #101
Ely, Suzanne 2794 S Eagle Eagle Idaho 83616 208.841.5391
Rd, Ste 150
Kopelow, Joia 1714 N Wells Chicago Illinois 60614 312-982-4448
Street
Combs, Mark 1448 Waukegan Glenview Illinois 60025 847-892-4643
Rd
Kopelow, Joia 3601 N. Lakeview Illinois 60614 312-982-4448
Southport
Combs, 31 S.Northwest Park Ridge Illinois 60068 505-850-5619
Christina Hwy
Saban, Dan 463 Randall South Elgin Illinois 60540 555-555-5555
Road
Aldrich, Jay 50 West 63rd Willowbrook Illinois 60527 708-391-5400
Street
Newman, Kelly 3420 Valley Fort Wright Kentucky 41017 859-349-0530
Plaza Pkwy
Whittemore, 75 Middlesex Burlington Massachusetts 01803 508-654-3421
Marjie Turnpike
Lazenby, Soosie 200B LINDEN WELLESLEY Massachusetts 02428 727-647-4451
STREET
Treat, Tyler 424 Pond Chanhassen Minnesota 55317 763-553-7939
Promenade
Treat, Tyler 3226 West Lake Minneapolis Minnesota 55416 763-553-7939
Street
Treat, Tyler 27420 North Plymouth Minnesota 55441 763-553-7939
Annapolis
Circle,
Score, Blake 8390 Tamarack Woodbury Minnesota 55105 651-330-0074
Village
Kweeder, Marc 101 South Evesham New Jersey 08053 (856) 264-9558
Route 73 Township
Weaving, Dave 184 S. Livingston New Jersey 07928 973-738-2000
Livingston
Weaving, Dave 11 DeHart Morristown New Jersey 07960 973-738-2000
Street
Rinaldi, Dawn 17 S Moger Mount Kisco New York 10549 914-400-2004
Kanzer, Adam 1136 Wilmot Scarsdale New York 10583 516-528-2109
Rd
Rinaldi, Dawn 147 E. Post White Plains New York 10601 914-400-2004
Road
Tucker, Chris 8285 Woodbury New York 11797 631-786-3530
JerichoTpk.
Odom, Dana 302 Colonades Cary North Carolina 27518 (727) 515-5756
Way #212
Hitzemann, 1235 East Blvd. Charlotte North Carolina 28203 704-442-1427
Steve Suite G
Hitzemann, 4920 Old Sardis Charlotte North Carolina 28211 704-442-1427
Steve Road Unit C3
Charlotte, NC
28211
Hitzemann, 9121 Sam Furr Huntersville North Carolina 28078 704-442-1427
Steve Road
Proctor, Janna 999 S Main Centerville Ohio 45459 513-464-0300
Street
Oates, Brian 5015 Deerfield Mason Ohio 45040 513-919-0419
Blvd
Havens, Adam 12305 SW Beaverton Oregon 97007 503-504-9588
Horizon
Boulevard,
Suite 15
Havens, Adam 395 Second Lake Oswego Oregon 97034 503-504-9588
Street
Wamsley, 3642 SW Portland Oregon 97239 971-271-7984
DeeDee RIVER PKWY
SUITE C
Wamsley, 1603 NW 14th Portland Oregon 97209 971-271-7984
DeeDee Ave
Shen, Elizabeth 222 Main Street Collegeville Pennsylvania 19426 267-218-3356
Gondi, Ashley 1922 Augusta Greenville South Carolina 29605 864-350-7775
St. Suite 111
Stanley, Jerry & 3201 Bee Cave Austin Texas 78746 512-573-1717
Rachel Road Suite 106
Stanley, Jerry & 1414 South Austin Texas 78704 512-573-1717
Rachel Lamar Blvd, Ste
105
Stanley, Jerry & 2200 Aldrich Austin Texas 78723 512-573-1717
Rachel Street Suite 110
Goldstein, Brian 6702 Ferris St. Bellaire Texas 77401 (281) 795-4489
D'Sylva, Lynell 6363 Dallas Frisco Texas 75034 847.309.6187
Parkway, #209
Jarratt, John 6300 FM 1463, Fulshear Texas 77441 832-557-0517
Ste 200
Rackley, Terry 1411 Keller Keller Texas 76248 817-953-8500
Parkway #600
Levick, Linda 2800 S. IH 35 Round Rock Texas 78681 631-513-2648
Suite 101
Rackley, Terry 21803 IH-10 San Antonio Texas 78257 817-953-8500
West Suite 106
Smith, Cory 7915 W. Loop San Antonio Texas 78254 254-335-0101
1604N
Smith, Cory 21803 IH -10 San Antonio Texas 78257 254-335-0101
West, San
Antonio, Texas
78257 suite 106
Hameed, Aamir 18802 Sugarland Texas 77479 832-659-4796
University Blvd
Cowley, Tracy 2000 Hughes The Woodlands Texas 77380 832-768-0099
Landing Blvd
#300
Wamsley, 1140 Fort Union Midvale Utah 84047 971-271-7984
DeeDee Blvd. Suite M04
Wamsley, 4578 West Riverton Utah 84096 971-271-7984
DeeDee Partirdge Hill
Lane Suite B -
160
Karnik, Sachin 7330 164th Ave Redmond Washington 98052 425-658-0606
NE Suite E 140
LIST OF SIGNED FRANCHISEES THAT HAVE NOT YET OPENED AS OF DECEMBER 31, 2020
Name City State Phone Number

Mendias, Chris Mesa Arizona 480-658-2322
Oliver, Muhammad Peoria Arizona 203-994-3135-
Gage, Jennifer Phoenix Arizona 480-687-0777

Uhlig, Jennfer Phoenix Arizona 602-303-1857-
Maro, Cheryl Scottsdale Arizona 480-236-4899

Lincoln, Meredith Burlingame California 415-515-9744
Bilgin, Mesut Carlsbad California 760-989-4144
Yee, Darrin Dana Point California 949-713-1361
Jain, Arihant Fremont California 408-390-9475
Onalfo, Tammy Fremont California 408-505-5848
Siegel, Stephen Long Beach California 562-855-1800
Bandi, Ankita Oakland California 510-822-2500
Schroeder, DeeDee San Francisco California 415-917-8440
Makinney, Katherine Woodland Hills California 310-815-8157
Bryan, Crowe Lone Tree Colorado 303-241-1151

Arconti, Christina Stamford Connecticut 203-994-3135-
Martin, Erika Washington DC DC 202-414-9266

Bholasing, Rakesh Gainesville Florida 352-255-3795
Matalon, Daniel Marrieta Georgia 678-887-4658
Rinder, Mandy Chicago Illinois 312-772-4932
Williams, Lenita Orland Park Illinois 312-617-1156
Saban, Dan South Elgin Illinois 630-338-9920
Maloney, Matt Carmel Indiana 317-908-8345
Elmitt, Trevor Clive Iowa 515-314-6569
Conner, Mark Metairie Louisiana 504-913-4817
Snead, Jamie Wrenthem Massachusetts 910-922-0909

Houle, Wes Bozeman Montana 406-624-6010
Duffy, Heath Albuquerque New Mexico 505-850-5619
Summa, Carissa Hartford New York 718-208-3323
Shepard, Bill Hudson Ohio 216-401-3079
Johansen, Christina Pittsburgh Pennsylvania 412-992-7641
Gupta, Supriya Flower Mound Texas 804-502-0360-
Davis, Kenny Fort Worth Texas 817-565-9790

Robles, Victor Houston Texas 713-443-3872
Bigaliyeva, Almagul Kingwood Texas 346-396-3313
Oyin, Kokoricha Murphy Texas 972-904-7440

Jackson, Terrence Pearland Texas 832-736-7592
Gonzalez, Ricky San Antonio Texas 210-782-9592
Cowley, Tracy The Woodlands Texas 346-220-4375
Riddick, Brian Kirkland Washington 208-794-1727
LIST OF FRANCHISEES THAT HAVE LEFT THE SYSTEM IN THE PAST FISCAL YEAR OR THAT
HAVE FAILED TO COMMUNICATE WITH US

Cornelius, Mark Hadley Massachusetts (413) 530-6187
Exhibit I
DEVELOPMENT AGREEMENT
STRETCH LAB FRANCHISE, LLC
AREA DEVELOPMENT AGREEMENT
DEVELOPER
________________________
________________________
DATE OF AGREEMENT

2021 Development Agreement
TABLE OF CONTENTS
1. REFERENCES AND DEFINITIONS ..................................................................................................2

2. USE OF SYSTEM ................................................................................................................................3
3. GRANT OF DEVELOPMENT RIGHTS .............................................................................................3
4. DEVELOPMENT RIGHTS AND OBLIGATIONS ............................................................................4
5. STUDIO CLOSINGS ...........................................................................................................................6
6. PROCEDURE FOR EXERCISING DEVELOPMENT RIGHTS........................................................6
7. DUTIES OF DEVELOPER ..................................................................................................................6
8. SITE SELECTION, LEASES, FRANCHISE AGREEMENT .............................................................8
9. DEVELOPMENT FEE .........................................................................................................................9
10. SUPERIORITY OF INDIVIDUAL FRANCHISE AGREEMENT .....................................................9
11. COVENANTS ......................................................................................................................................9
12. RELATIONSHIP OF THE PARTIES ................................................................................................ 11
13. PROPRIETARY MARKS ..................................................................................................................13
14. TERMINATION ................................................................................................................................ 14
15. EFFECT OF TERMINATION AND EXPIRATION .........................................................................15
16. TRANSFER OF INTEREST ..............................................................................................................15
17. APPROVALS .....................................................................................................................................20
18. NONWAIVER....................................................................................................................................20
19. DEVELOPER’S RECORDS AND REPORTS ..................................................................................20
20. NOTICES AND PAYMENTS ...........................................................................................................21
21. GOVERNING LAW .......................................................................................................................... 24
22. ARBITRATION AND OTHER DISPUTE RESOLUTION PROVISIONS ......................................24
23. ENFORCEMENT ............................................................................................................................... 24
24. CAVEAT ............................................................................................................................................27
25. MISCELLANEOUS ........................................................................................................................... 27
EXHIBITS
ATTACHMENT: GUARANTY AND ASSUMPTION OF OBLIGATIONS

EXHIBIT A – DEVELOPMENT AREA
EXHIBIT B – DEVELOPMENT SCHEDULE
EXHIBIT C – FRANCHISE AGREEMENT
EXHIBIT D – STATEMENT OF OWNERSHIP INTERESTS AND PRINCIPALS
EXHIBIT E – CONFIDENTIALITY AGREEMENT AND ANCILLARY COVENANTS NOT TO
COMPETE

2021 Development Agreement i
AREA DEVELOPMENT AGREEMENT
THIS AREA DEVELOPMENT AGREEMENT (the “Agreement”), is made and entered into
this day of , 20___, by and between: (i) Stretch Lab Franchise, LLC, a limited liability
company formed and operating under the laws of the State of Delaware whose principal business address
is 17877 Von Karman Avenue, Suite 100, Irvine, California 92614 (the “Franchisor”); and
(ii)________________ , a/n ____________________ with a business address at
____________________ (the “Developer”).
WITNESSETH:
WHEREAS, as the result of the expenditure of time, effort and expense, Franchisor has created a
unique and distinctive proprietary system (hereinafter the “System”) for the establishment, development
and operation of STRETCH LAB Studios (each, a “Studio”) that offer (a) private and group stretching
classes and related therapy services, as well as other services that Franchisor authorizes (collectively, the
“Approved Services”), and (b) certain merchandise and other products Franchisor authorizes for sale in
conjunction with the Approved Services and Studio operations (collectively, the “Approved Products”), to
the general public and/or through a membership-based program, under the mark STRETCH LAB.
WHEREAS, Franchisor owns the System and the right to use the Proprietary Marks (as defined
below), and grants the right and license to others to use the System and the Proprietary Marks;
WHEREAS, the distinguishing characteristics of the System include, without limitation,

proprietary methodology and procedures for the establishment and operating procedures, site selection
guidance and criteria, specifications for the design, layout and construction of the interior of the Studio,
standards and specifications for the furniture, fixtures and equipment located within a Studio, established
relationships with approved or designated suppliers for certain products and services, and standards and
specifications for advertising, bookkeeping, sales and other aspects of operating a Studio.
WHEREAS, Franchisor identifies the System and licenses the use of certain trade names, service
marks, trademarks, emblems and indicia of origin, including the mark STRETCH LAB and other trade
names, service marks and trademarks as are now designated and may hereafter be designated by Franchisor
in writing for use with the System (the “Proprietary Marks”);
WHEREAS, Developer desires the right to develop, own and operate multiple STRETCH LAB
Studios under the System in a defined geographic area under a Development Schedule (the “Development
Schedule”) set forth in this Agreement; and
WHEREAS, Developer acknowledges that Developer has conducted an independent investigation

of the business contemplated by this Agreement and recognizes that, like any other business, the nature of
the business conducted as a STRETCH LAB Studio may evolve and change over time, that an investment
in a STRETCH LAB Studio involves a business risk and the success of the venture is largely dependent
upon Developer’s business abilities and efforts.
NOW, THEREFORE, the parties, in consideration of the mutual undertakings and commitments
set forth in this Agreement, the receipt and sufficiency of which are hereby acknowledged, agree as follows

2021 Development Agreement 1
1. REFERENCES AND DEFINITIONS
A. DEVELOPMENT AREA
“Development Area” means the geographic area described in Exhibit A.
B. DEVELOPMENT SCHEDULE/DEVELOPMENT PERIOD
“Development Schedule” means the schedule for Developer to open and operate a specific
cumulative number of STRETCH LAB Studios as set forth in Exhibit B to this Agreement. Each
“Development Period” is a period of time set forth in the Development Schedule wherein Developer must
meet each specific development obligations.
C. FRANCHISE AGREEMENT
Except for the royalty fee and the advertising contributions, which shall remain the same in each
franchise agreement executed pursuant to this Agreement and any extensions of this Agreement, the term
“Franchise Agreement” means the then-current form of agreements (including the franchise agreement and
any exhibits, riders, collateral assignments of leases or subleases, shareholder guarantees and preliminary
agreements) that Franchisor customarily uses in the granting of a franchise for the ownership and operation
of a STRETCH LAB Studio.
Concurrent with the execution of this Agreement, Developer shall execute the Franchise Agreement
for the first Studio that Developer is granted the right to open within the Development Area hereunder.
Franchisor, in its sole discretion, but subject to the express provisions contained herein, may modify or
amend in any respect the standard form of Franchise Agreement it customarily uses in granting a franchise
for a STRETCH LAB Studio.
The parties agree and acknowledge that: (i) Developer must timely execute Franchisor’s then-
current form of Franchise Agreement for each STRETCH LAB Studio that Developer is required to open
and commence operating pursuant to the Development Schedule; and (ii) Franchisor may, in its discretion,
modify or amend the form of Franchise Agreement that Franchisor is using as of the date this Agreement
is executed as it deems appropriate for (a) use in the STRETCH LAB System generally, and (b) execution
by the parties in connection with the Studios that Developer must subsequently open and commence
operating under this Agreement.
D. PRINCIPALS
The term “Principals” includes, collectively and individually, Developer’s owners; if Developer is
an entity, any officers and directors of Developer (including the officers and directors of any general partner
of Developer) and any person and of any entity directly owning and/or controlling ten percent (10%) or
more of Developer, or a managing member or manager of a limited liability company. The initial Principals
shall be listed in Exhibit D. The Principals must execute an agreement in substantially the form of the
attached Guaranty and Assumption of Obligations (immediately following this Agreement) undertaking to
be bound jointly and severally to all provisions of this Agreement.

2. USE OF SYSTEM
Developer acknowledges, and does not contest, Franchisor’s exclusive ownership and rights to each
and every aspect of the System. Developer’s right to developer Studios is specifically limited to the
Development Area, as well as the terms and conditions of this Agreement and Franchise Agreements
executed pursuant thereto.
3. GRANT OF DEVELOPMENT RIGHTS
A. GRANT AND TERM
In reliance on the representations and warranties of Developer and its Principals, Franchisor grants
to Developer, and Developer hereby accepts the right and obligation to develop, a designated number of
Stretch Lab Studios within the Development Area in full compliance with the terms of this Agreement,
including the timely development obligations to open a specific cumulative number of Stretch Lab Studios
over prescribed periods of time as established in the Development Schedule; and in full compliance with
all obligations and provisions under the form(s) of Franchise Agreement entered into for the right to own
and operate each individual Stretch Lab Studio.
The term of this Agreement shall commence upon full execution of this Agreement and, unless
earlier terminated by Franchisor pursuant to the terms hereof, this Agreement shall expire upon the earlier
of: (i) the date Developer timely opens the last STRETCH LAB Studio it is required to open and commence
operations within the Development Area pursuant to this Agreement; or (ii) the last day of the last
Development Period on the Development Schedule. Developer acquires no rights under this Agreement to
develop STRETCH LAB Studios outside the Development Area. Upon expiration or termination of this
Agreement for any reason, Developer will have no rights whatsoever within the Development Area (other
than any territorial rights that Franchisor has granted to Developer in connection with any STRETCH LAB
Studio(s) that Developer has timely opened pursuant to a Franchise Agreement as required by the
Development Schedule prior to the date this Agreement is terminated or expires).
B. COMMITMENT OF DEVELOPER
Franchisor has granted these rights in reliance on the business skill, financial capability, personal
character and expectations of performance by the Developer and its Principals. This Agreement is for the
purpose of developing and operating the STRETCH LAB Studios, and is not for the purpose of reselling
the rights granted by this Agreement.
C. DEVELOPMENT PLAN
The following conditions and approvals are conditions precedent before the right of Developer to
develop each STRETCH LAB Studio becomes effective. At the time Developer selects a site for each
STRETCH LAB Studio, Developer must satisfy the operational, financial and training requirements, set
forth below:
(1) Operational: Developer must be in substantial compliance with the material terms
and conditions of this Agreement and all Franchise Agreements granted Developer. For each STRETCH
LAB Studio operated by Developer, Developer must be in substantial compliance with the standards,
specifications, and procedures set forth and described in the Manuals (defined in the Franchise Agreement).
(2) Financial: Developer and the Principals must satisfy Franchisor’s financial criteria
for Developers and Principals with respect to Developer’s operation of its existing STRETCH LAB Studios,

if any, and the proposed STRETCH LAB Studio. Developer must be in compliance and not been in default
during the twelve (12) months preceding Developer’s request for approval, of any monetary obligations of
Developer to Franchisor or its affiliate under any Franchise Agreement granted under this Agreement.
D. EXECUTION OF FRANCHISE AGREEMENT
This Agreement is not a Franchise Agreement and does not grant Developer any right or license to
operate a STRETCH LAB Studio, or to provide services, or to distribute goods, or any right or license in
the Proprietary Marks. Developer must timely execute Franchisor’s then-current form of Franchise
Agreement for each STRETCH LAB Studio that Developer is required to open under the Development
Schedule.
4. DEVELOPMENT RIGHTS AND OBLIGATIONS
A. RESERVATION OF RIGHTS
Franchisor (on behalf of itself and its affiliate(s), parent(s) and subsidiaries) retains the rights, in its
sole discretion and without granting any rights to Developer: (1) to itself operate, or to grant other persons
the right to operate, STRETCH LAB Studios at locations and on terms Franchisor deems appropriate
outside the Development Area granted Developer, and (2) to sell the products and services authorized for
STRETCH LAB Studios under the Proprietary Marks or under other trademarks, service marks and
commercial symbols through dissimilar channels of distribution and under terms Franchisor deems
appropriate within and outside the Development Area, including, but not limited to, by electronic means,
such as the Internet, and by web sites established by Franchisor, as we determine, in our sole discretion.
In addition, Franchisor, any other developer and any other authorized person or entity shall have
the right, at any time, to advertise and promote the System, in the Development Area. Developer
acknowledges and agrees that Developer is only granted the right to develop and operate STRETCH LAB
Studios within the Development Area. Accordingly, within and outside the Development Area, Franchisor
and its affiliate and its subsidiaries may also offer and sell, and may authorize others to offer and sell
products and services identified by the Proprietary Marks (including memberships and gift cards) at or from
any location.
Franchisor and its affiliate(s)/parent(s) further reserve the right to: (i) open and operate, and license
others the right to open and operate, Studios using the Proprietary Marks and System at any location outside
of your Development Area; (ii) open and operate, and license others the right to open and operate,
businesses that operate under marks other than the Proprietary Marks the offer similar products and services
that are offered by a STRETCH LAB Studio, regardless of location; (iii) otherwise market, offer and sell
products and services that are similar to the Approved Products and Approved Services offered by a Studio
under a different trademark or trademarks, regardless of location; (iv) use the Proprietary Marks and
System, as well as other such marks we designate, to distribute any Approved Products and/or Services in
any alternative channel of distribution at any location, including via the Internet, mail order, catalog sales,
toll-free numbers, wholesale stores, etc.); (v) to acquire, merge with, or otherwise affiliate with, and after
that own and operate, and franchise or license others to own and operate, any business of any kind,
including, without limitation, any business that offers products or services the same as or similar to the
Approved Products and Approved Services (but under different marks), regardless of location; and (vi) use
the Proprietary Marks and System, and license others to use the Proprietary Marks and System, to engage
in any other activities not expressly prohibited by this Agreement.
Franchisor may be acquired (whether through acquisition of assets, ownership interests or

otherwise, regardless of the form of transaction), by a business providing products and similar services to

those provided at a STRETCH LAB Studio, or by another business, even if such business operates,
franchises and/or licenses competitive businesses within the Development Area granted by the Area
Development Agreement and within the Designated Territory granted by a Franchise Agreement.
Franchisor has the right to own, operate and license others to own and operate other business
concepts in and outside the Development Area consistent with the terms of this Section.
Franchisor has no obligation and will not pay Developer if it exercises any of the rights specified
above within the Development Area granted by the Area Development Agreement or within the Designated
Territory granted by a Franchise Agreement.
B. RIGHTS DURING DEVELOPMENT PERIODS
Subject to Section 4(A) and the other terms of this Agreement, if Developer (i) is in compliance
with the material terms and conditions contained in this Agreement, including the timely development
obligations to open a specific cumulative number of STRETCH LAB Studios over prescribed periods of
time as established in Exhibit B (the “Development Schedule”), and (ii) is in substantial compliance with
all material obligations under Franchise Agreements executed by Developer for individual STRETCH LAB
Studios under this Agreement; then during the Development Schedule, Franchisor: (i) will grant Developer
the right to own and operate STRETCH LAB Studios located within the Development Area pursuant to the
terms of this Agreement; and (ii) will not operate (directly or through its affiliate), nor grant a franchise for
the location of, any STRETCH LAB Studio within the Development Area, except for franchises granted to
Developer under this Agreement.
If Developer, for any reason within his control, fails to comply with the Development Schedule,
this failure constitutes a material default of this Agreement, and Franchisor has the right to terminate this
Agreement pursuant to Section 14 of this Agreement. In the event Developer fails to cure the noticed
default within the time allowed under Section 14, Franchisor may terminate this Agreement and grant
individual or area development franchises within the Development Area to third parties or own and operate
Studios owned by Franchisor or by the affiliate of Franchisor. Franchisor and Developer agree that the
timely development of Studios by Developer in compliance with the Development Schedule will control
the rights granted Developer by this Agreement, regardless of the time period granted Developer to open a
Studio pursuant to a Franchise Agreement for such Studio. Upon termination of this Agreement, all rights
granted Developer revert to Franchisor, who is free to franchise any other person to use the System within
the Development Area or to itself own and operate STRETCH LAB Studios within the Development Area.
Notwithstanding anything contained in this Section, Franchisor will provide Developer with a one-
time reasonable extension of time not to exceed ninety (90) days to comply with its development obligations
in any one of the Development Period as set forth in the Development Schedule (see Exhibit B), provided:
(i) Developer has already executed a lease for, or otherwise obtained, a Premises that Franchisor approves
for any STRETCH LAB Studio(s) it is required to open and operate during that Development Period; and
(ii) Developer notifies Franchisor of its need for such an extension no less than thirty (30) days prior to
expiration of that Development Period. The parties agree and acknowledge that Franchisor’s grant of this
one-time extension under this Section will not extend, modify or otherwise affect the expiration of any of
Developer’s subsequent Development Periods or subsequent development obligations.
C. DEVELOPMENT OBLIGATIONS
Developer will at all times faithfully, honestly, and diligently perform his obligations under this
Agreement and will continuously exert his best efforts to timely promote and enhance the development of
STRETCH LAB Studios within the Development Area. Developer agrees to open and operate the

cumulative number of STRETCH LAB Studios at the end of each Development Period set forth in the
Development Schedule (see Exhibit B). Developer agrees that compliance with the Development Schedule
is the essence of this Agreement.
D. EXPIRATION OR TERMINATION
After this Agreement expires or terminates for any reason, Franchisor shall have the absolute right
to own and operate, or license other parties the right to own and operate STRETCH LAB STUDIOS, in the
Development Area, except in those Designated Territories granted under each Franchise Agreement that
Developer enters into pursuant to this Agreement.
5. STUDIO CLOSINGS
If during the term of this Agreement, Developer ceases to operate any STRETCH LAB Studio
developed under this Agreement for any reason, Developer must develop a replacement STRETCH LAB
Studio to fulfill Developer’s obligation to have open and in operation the required number of STRETCH
LAB Studios upon the expiration of each Development Period. The replacement STRETCH LAB Studio
must be open and in operation within nine (9) months after Developer ceases to operate the STRETCH
LAB Studio to be replaced or Developer will be in material breach of this Agreement. If, during the term
of this Agreement, Developer, in accordance with the terms of any Franchise Agreement for a STRETCH
LAB Studio developed under this Agreement, transfers its interests in that STRETCH LAB Studio, a
transferred STRETCH LAB Studio shall continue to be counted in determining whether the Developer has
complied with the Development Schedule so long as it continues to be operated as a STRETCH LAB
Studio. If the transferred STRETCH LAB Studio ceases to be operated as a STRETCH LAB Studio, it will
not count toward Developer’s compliance with the Development Schedule.
6. PROCEDURE FOR EXERCISING DEVELOPMENT RIGHTS
Developer shall enter into a separate Franchise Agreement with Franchisor for each STRETCH
LAB Studio developed pursuant to this Agreement. The Franchise Agreement to be executed for the first
STRETCH LAB Studio to be developed by Developer under this Agreement must be executed and
delivered to Franchisor concurrently with the execution and delivery of this Agreement. All subsequent
STRETCH LAB Studios developed under this Agreement must be established and operated under the then-
current form of Franchise Agreement then being used by Franchisor for STRETCH LAB Studios under the
System. The then-current form of Franchise Agreement may differ from the form attached as Exhibit C;
however, the provisions regarding royalty fees and advertising contributions shall remain as established in
Exhibit C. Developer must execute the then-current form of Franchise Agreement for each STRETCH
LAB Studio to be developed under this Agreement
Developer acknowledges that the projected opening dates for each STRETCH LAB Studio set forth
in the Development Schedule are reasonable requirements. Developer must execute a Franchise Agreement
for each Studio by the earlier of: (i) fifteen (15) days from the date a lease is signed for a location that
Franchisor approves for the STRETCH LAB Studio at issue; and (ii) the date necessary for Developer to
otherwise comply with its development obligations under this Agreement.
7. DUTIES OF DEVELOPER
A. ORGANIZATION OF DEVELOPER
Developer makes the following representations, warranties and covenants and accepts the
following continuing obligations:

(1) If Developer is a corporation, limited liability company or a partnership, Developer
represents, warrants and covenants that: (i) Developer is duly organized and validly existing under the state
law of its formation; (ii) Developer is duly qualified and is authorized to do business in each jurisdiction
which requires such qualification; (iii) the execution and performance of this Agreement are within
Developer’s corporate power, if Developer is a corporation or if Developer is a partnership permitted under
Developer’s written partnership agreement, or if Developer is a limited liability company, permitted under
the management agreement;
(2) If Developer is a corporation, copies of its articles of incorporation, bylaws, other

governing documents, any amendments, resolutions of the Board of Directors authorizing entry into and
performance of this Agreement, shall be promptly furnished to Franchisor. If Developer is a partnership,
copies of Developer’s written partnership agreement and other governing documents shall be promptly
furnished to Franchisor before the execution of this Agreement. If Developer is a limited liability company,
copies of Developer’s organizational documents and management agreement shall be promptly furnished
to Franchisor;
(3) If Developer is a corporation, partnership, limited liability company, or other form

of legal entity other than an individual, Developer shall maintain at all times a current list of all owners of
record and all beneficial owners of any class of voting securities in Developer or, if Developer is a
partnership, Developer shall maintain at all times a current list of all owners of an interest in the partnership,
or, if Developer is a limited liability company, it shall maintain at all times a current list of managers and
members of the limited liability company;
(4) If, after the execution of this Agreement, any person ceases to qualify as one of the
Developer’s Principal’s (as defined in Section 1), or if Developer believes in the event any individual later
qualifies as one of Principals, Developer shall promptly notify Franchisor and that person shall execute any
documents (including, as applicable, this Agreement) as Franchisor may reasonably require;
(5) If Developer is a corporation, Developer must maintain stop-transfer instructions

against the transfer of its records of any equity security and each stock certificate of the corporation shall
have conspicuously endorsed upon it a statement in a form satisfactory to Franchisor that it is held subject
to all restrictions imposed upon assignments by this Agreement; provided, however, that the requirements
of this Section 7 shall not apply to a publicly held corporation. If Developer is a partnership, its written
partnership agreement shall provide that ownership of an interest in the partnership is held subject to and
that further assignment or transfer is subject to restrictions imposed on assignments by this Agreement. If
Developer is a limited liability company, its articles of organization and operating agreement must provide
that ownership interests are subject to restrictions on transfers imposed on assignments by this Agreement;
(6) Developer agrees to maintain at all times throughout the term of this Agreement,
sufficient working capital to fulfill its obligations under this Agreement; and
(7) Each Principal who has right, title, or interest of ten percent (10%) or more in the
ownership of Developer, must each execute and bind themselves to the confidentiality and noncompetition
covenants set forth in the Confidentiality Agreement and Ancillary Covenants Not to Compete (Exhibit E).
The Principals agree to jointly and severally guarantee the performance of all of Developer’s obligations,
under the terms of this Agreement, except the obligation to open Studios.
B. REQUIREMENTS OF REPRESENTATIVE
Upon the execution of this Agreement, Developer must designate and retain an individual
throughout the term of this Agreement to act on behalf of Developer in all transactions with Developer

concerning Developer’s obligations under this Agreement (the “Representative”). If Developer is an
individual, Developer must perform all obligations of the Representative. The Representative must use
reasonable efforts to do the following, during the entire period he serves in that capacity: (1) maintain a
direct or indirect ownership interest in the Developer; (2) devote substantial time and reasonable efforts to
the supervision and conduct of the business contemplated by this Agreement and execute this Agreement
as one of the Principals; and (3) meet Franchisor’s standards and criteria for a Representative as set forth
in the Manuals or otherwise in writing by Franchisor. If the Representative or any designee is not able to
continue to serve in the capacity of Representative or no longer qualifies, Developer must promptly notify
Franchisor and designate a replacement.
C. BEST EFFORTS
Developer must use his best efforts to substantially comply with all requirements of federal, state
and local rules, regulations and orders.
8. SITE SELECTION, LEASES, FRANCHISE AGREEMENT
A. SELECTION OF SITE BY DEVELOPER
Developer assumes all costs, liabilities, expenses and responsibilities for locating, obtaining,
financing and developing sites for STRETCH LAB Studios, and for constructing and equipping STRETCH
LAB Studios at those sites. The selection of a site and the development of a Studio at any site is the
responsibility of Developer. The selection of a site by Developer is subject to our approval and must be in
compliance with Franchisor’s site selection procedures and its standards for demographic characteristics,
parking, traffic patterns and the predominant character of the neighborhood, and other commercial
characteristics of the site and any other factors Franchisor may consider relevant in reviewing a site selected
by Developer. Developer must not enter into a binding commitment with a prospective seller or lessor of
real estate with respect to the site for a Studio until Franchisor has approved the proposed site. Developer
specifically acknowledges that the selection of a site by Developer in compliance with Franchisor’s site
selection procedures and the approval of a site by Franchisor does not constitute a representation, promise
or guarantee by Franchisor that the site and the Studio to be operated at that site will be profitable or
successful. Developer acknowledges that factors governing the success of a STRETCH LAB Studio are
unpredictable and beyond Franchisor’s control. Franchisor is not responsible to Developer or to any other
person or entity if a site approved by Franchisor fails to meet Developer’s expectations for revenue or
operational criteria.
B. DEMOGRAPHIC INFORMATION
Before acquiring a site for any Studio by lease or purchase, Developer must locate a site for the
Studio that satisfies the site selection guidelines Franchisor provides to Developer and must submit to
Franchisor, in the form Franchisor specifies, a description of the site, a demographic study and other
information and materials Franchisor may reasonably require and shall represent in writing that Developer
has the option or other firm commitment to obtain the site. Franchisor will review information provided by
Developer for the site which may include the population of the work force or residents, character of the
neighborhood, household income, ingress and egress, and trade area. If on-site evaluations by Franchisor
are requested by Developer or determined to be necessary by Franchisor, then Franchisor or its designee
will, at Franchisor’s expense, provide a single on-site inspection in connection with each Studio that
Developer is required to open hereunder at Franchisor’s expense. Developer must reimburse Franchisor for
the reasonable expenses Franchisor incurs for any additional on-site evaluations, including, but not limited
to, the cost of travel, lodging, meals and wages of Franchisor’s representatives and employees.

C. LEASE OR PURCHASE OF SITE
Developer shall not make any binding commitment to purchase or lease real estate for a proposed
site for a STRETCH LAB Studio until the proposed site has been approved by Franchisor and a Franchise
Agreement has been executed by Franchisor and Developer (or its affiliate) for a Studio at such site.
Developer shall provide Franchisor with a copy of either the proposed contract of sale or lease relating to
the site before the Franchise Agreement is executed. Developer must comply with the conditions set forth
in the Franchise Agreement at issue in connection with the signing of such a lease, including ensuring that
both Developer and the landlord for the proposed site execute Franchisor’s prescribed from of Collateral
Assignment of Lease. Developer must use any approved or designated suppliers that Franchisor designates
in connection with the site selection and acquisition process.
D. FRANCHISE AGREEMENT
Franchisor will deliver a Franchise Agreement, in the then-current form, to Developer for execution
by Developer (or its affiliate). With the execution of this Agreement, Developer must concurrently execute
the Franchise Agreement establishing Developer’s first STRETCH LAB Studio and return both this
Agreement and the Franchise Agreement to Franchisor. If Developer fails to execute the Franchise
Agreement, Franchisor may, at its sole discretion, revoke its approval of the site and its offer to grant
Developer a franchise to operate a STRETCH LAB Studio at the site.
9. DEVELOPMENT FEE
Concurrently with the execution of this Agreement, Developer must pay to Franchisor a
nonrefundable area development fee equal to $___________ (the “Development Fee”). The Development
Fee is deemed fully earned by Franchisor upon execution of this Agreement in consideration of lost
development opportunities and is nonrefundable under any circumstances. Developer will not be required
to pay any additional initial franchise fee for each Studio opened pursuant to this Agreement upon executing
a Franchise Agreement for that Studio.
10. SUPERIORITY OF INDIVIDUAL FRANCHISE AGREEMENT
Developer understands and agrees that any and all individual Franchise Agreements executed by
Developer and Franchisor for STRETCH LAB Studios within the Development Area are independent of
this Agreement. The continued effectiveness of any Franchise Agreement does not depend on the continued
effectiveness of this Area Development Agreement. If any conflict arises with this Agreement and any
Franchise Agreement, the Franchise Agreement controls, has precedence and superiority (except with
respect to the opening deadline for each STRETCH LAB Studio Developer is granted the right to open
under this Agreement).
11. COVENANTS
A. Developer and the Representative covenant that during the term of this Agreement, except
as otherwise approved in writing by Franchisor, Developer and the Representative must devote substantial
time, energy and best efforts to the management and operation of the development activities required under
this Agreement.
B. Developer acknowledges that, as a participant in Franchisor’s System, Developer will

receive proprietary and confidential information and materials, trade secrets, and the unique methods,
procedures and techniques that Franchisor has developed. As such, Developer agrees to the covenants in

this Section to protect Franchisor, the System, Proprietary Marks and Franchisor’s other franchisees and
developers.
(1) During the term of this Agreement, neither Developer, its Principals, owners,
officers or guarantors, nor any immediate family of Developer, its Principals, owners, officers or guarantors,
may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person,
partnership or corporation:
(a) Own, maintain, engage in, be employed or serve as an officer, director, or

principal of, lend money or extend credit to or have any interest in or involvement with, any: (i) stretching
studio or other fitness, exercise or personal training business; (ii) any fitness, exercise or personal training
marketing or consulting business; (iii) any business offering products of a similar nature to those of the
Studio (each, a “Competing Business”); or (iv) offers or grants licenses or franchises, or establishes joint
ventures, for the ownership or operation of a Competing Business. For purposes of this Agreement, a
Competing Business does not include: (A) any business operated by Developer under a Franchise
Agreement with Franchisor; or (B) any business operated by a publicly-traded entity in which Developer
owns less than two percent (2%) legal or beneficial interest
(b) Employ or seek to employ any person who is at that time employed by
Franchisor, Franchisor’s affiliates or any other System franchisee or developer, or otherwise directly or
indirectly induce or seek to induce such person to leave his or her employment thereat; or
(c) Divert, or attempt to divert, any prospective customer to a Competing

Business in any manner.
(2) For a period of two (2) years after the expiration and nonrenewal, transfer or
termination of this Agreement, regardless of the cause, neither Developer, its Principals, owners, officers
and guarantors, nor any member of the immediate family of Developer, its Principals, owners, officers or
guarantors, may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any
other person, partnership or corporation, be involved with any business that competes in whole or in part
with Franchisor by offering or granting licenses or franchises, or establishing joint ventures, for the
ownership or operation of a Competing Business. The geographic scope of the covenant contained in this
Section is any location where Franchisor can demonstrate it has offered or sold franchises as of the date
this Agreement is terminated or expires.
(3) For a period of two (2) years after the expiration and nonrenewal, transfer or
termination of this Agreement, regardless of the cause, neither Developer, its Principals, owners, officers
and guarantors, nor any member of the immediate family of Developer, its Principals, owners, officers or
guarantors, may, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any
other person, partnership or corporation:
(a) Own, maintain, engage in, be employed as an officer, director, or principal

of, lend money to, extend credit to or have any interest in or involvement with any other Competing
Business: (i) within the Development Area; or (ii) within a forty (40) mile radius of the perimeter of the
Development Area being granted hereunder or any other designated territory or development area licensed
by Franchisor to a STRETCH LAB Studio (whether franchised or company-owned) at any time from the
date of expiration or termination of this Agreement through the date Franchisee attempts to undertake the
competitive activity at issue; or
(b) Solicit business from customers of Developer’s former Studios or contact

any of Franchisor’s suppliers or vendors for any competitive business purpose, nor solicit any of

Franchisor’s other employees, or the employees of Franchisor’s affiliates or any other System franchisee
or developer to discontinue employment.
C. It is the parties’ intent that the provisions of this Section 11 be judicially enforced to the
fullest extent permissible under applicable law. Accordingly, the parties agree that any reduction in scope
or modification of any part of the noncompetition provisions contained herein shall not render any other
part unenforceable. In the event of the actual or threatened breach of this Section 11 by Developer, any of
Developer’s Principals, or any member of the immediate family of Developer or Developer’s Principals,
Franchisor shall be entitled to an injunction restraining such person from any such actual or threatened
breach. Developer acknowledges that the covenants contained herein are necessary to protect the goodwill
of other System franchisees and developers, and the System. Developer further acknowledges that
covenants contained in this Section 11 are necessary to protect Franchisor’s procedures and know-how
transmitted during the term of this Agreement. Developer agrees that in the event of the actual or threatened
breach of this Section 11, Franchisor’s harm will be irreparable and that Franchisor has no adequate remedy
at law to prevent such harm. Developer and the Principals agree to pay all costs and expenses (including
reasonable attorneys’ fees) incurred by Franchisor in connection with the enforcement of this Section 11.
Developer acknowledges and agrees on Developer’s own behalf and on behalf of the persons who are liable
under this Section 11 that each has previously worked or been gainfully employed in other careers and that
the provisions of this Section 11 in no way prevent any such person from earning a living. Developer
further acknowledges and agrees that the time limitation of this Section 11 shall be tolled during any default
under this Section 11.
D. Developer must ensure that all management personnel of Developer’s Studios opened
under this Agreement, as well as any officers or directors of Developer, execute Franchisor’s then-current
form of Confidentiality and Non-Competition Agreement. Developer must furnish Franchisor a copy of
each executed agreement.
E. Developer hereby agrees that the existence of any claim Developer may have against
Franchisor, whether or not arising from this Agreement, shall not constitute a defense to Franchisor’s
enforcement of the covenants contained in this Section 11. Developer agrees to pay all costs and expenses
(including reasonable attorneys’ fees) that Franchisor incurs in connection with the enforcement of this
Section 11.
F. Notwithstanding the foregoing, Franchisor reserves the right, in its sole discretion, to
reduce the period of time or geographic scope of the non-competition covenants set forth in this Section 11
and in Exhibit E, by written notice to Developer.
12. RELATIONSHIP OF THE PARTIES
A. The parties agree that this Agreement does not create a fiduciary relationship between
them, that Developer is an independent contractor and must at all times represent itself as an independent
contractor. This Agreement does not create either party as an agent, legal representative, subsidiary, joint
venturer, partner, employee or joint employer. Developer shall hold itself out to the public as an
independent contractor operating pursuant to this Agreement. Developer agrees to take any action necessary
to that end, including without limitation, exhibiting a notice on signage and member contracts, as required
by Franchisor as to content and manner of disclosure.
B. Developer understands and agrees that nothing in this Agreement authorizes Developer to
make any contract, agreement, warranty or representation on Franchisor’s behalf, or to incur any debt or
other obligation in Franchisor’s name and that Franchisor shall in no event assume liability for, or be

deemed liable under this Agreement as a result of any such action, or for any act or omission of Developer
in the conduct of its business pursuant to this Agreement or any claim or judgment arising therefrom.
C. Developer and each of the Principals shall, at all times, indemnify and hold harmless
Franchisor and its affiliate, successors and assigns and the officers, directors, shareholders, agents,
representatives and employees of each of them (“Indemnitees”) from all losses and expenses incurred in
connection with any formal or informal action, suit, proceeding, claim, demand, investigation or inquiry or
any settlement thereof, which arises out of or is based upon the action or negligence of Developer or any
Principal in any of the following:
(1) The infringement, alleged infringement, or any other violation or alleged violation
of any Proprietary Mark or other proprietary right owned by Franchisor;
(2) Claims of sexual harassment or discrimination by Developer’s employees or by a

guest at the Studio;
(3) The violation of any federal, state or local law, regulation, rule, standard or
directive, or any industry standard, including without limitation, health, sanitation and safety laws and
regulations;
(4) Libel, slander or any other form of defamation of Franchisor or the System, by
Developer or the Principals;
(5) The violation or breach by Developer or any of the Principals of any warranty,
representation, agreement or obligation of this Agreement or any Franchise Agreement; and
(6) Acts, errors or omissions of Developer or any of its agents, servants, employees,
contractors, partners, affiliates or representatives.
Notwithstanding anything contained in this Section 12(C), Developer will not be required to
indemnify, defend or hold Franchisor harmless for any claims or causes of action that arise solely out of
Franchisor’s gross negligence or willful misconduct.
D. Developer and each of the Principals agree to give Franchisor immediate notice of any such
action, suit, proceeding, claim, demand, inquiry or investigation.
E. Franchisor may, at any time and without notice, as it, in its reasonable discretion, consent,
or agree to settlement, or take such other remedial or corrective action as it deems expedient with respect
to the action, suit, proceeding, claim, demand, inquiry or investigation.
F. All losses and expenses incurred under this Section 12 shall be chargeable to and shall be
paid by Developer or any of the Principals pursuant to this Section 12, regardless of any actions, activity or
defense undertaken by Franchisor or the subsequent success or failure of such actions, activity or defense.
However, Franchisor will indemnify Developer from losses or expenses resulting from the direct result of
Franchisor’s negligence or intentional acts.
G. The phrase “losses and expenses” shall include, without limitation, all monetary losses,
compensatory, exemplary or punitive damages, fines, actual costs, expenses, lost profits, reasonable
attorneys’ fees, court costs, settlement amounts, judgments, damages to Franchisor’s reputation and
goodwill, costs of financing or advertising material and media costs and all expenses of recall, refunds,
compensation, public notices and such other amounts incurred in connection with the matters described.

H. Developer must give Franchisor notice of any such action immediately upon Developer
having received notice of any such action, claim or proceeding.
I. Under no circumstances shall Indemnitees be required or obligated to seek recovery from

third parties or otherwise mitigate their losses in order to maintain a claim against Developer. Developer
and the Principals agree that the failure of Franchisor to pursue recovery or mitigate loss from third parties
will in no way reduce the amounts recoverable from Developer or the Principals.
J. Developer and the Principals expressly agree that the terms of this Section 12 shall continue
in full force and effect after the termination, expiration or transfer of this Agreement or any interest herein.
13. PROPRIETARY MARKS
A. Developer acknowledges that Developer has no interest in or to the Proprietary Marks and
Developer’s right to use the Proprietary Marks is derived solely from the individual Franchise Agreements
entered into between Developer and Franchisor for the purpose of operating STRETCH LAB Studios.
Developer agrees that all usage of the Proprietary Marks by Developer and any goodwill established
exclusively benefits Franchisor. Developer agrees that after termination or expiration of this Agreement,
Developer will not, except with respect to STRETCH LAB Studios operated by Developer under individual
Franchise Agreements, directly or indirectly, at any time or in any manner identify itself or any business as
a Developer or former Developer of, or otherwise associated with, Franchisor or use in any manner or for
any purpose any Proprietary Mark or other indicia of a STRETCH LAB Studio or any colorable imitation.
B. Developer must not use any Proprietary Mark as part of any corporate or trade names or
with any prefix, suffix, or other modifying words, terms, designs, or symbols, or in any modified form, nor
may Developer use any Proprietary Mark in connection with any business or activity, other than the
business conducted by Developer under Franchise Agreements entered into between Developer and
Franchisor, or in any other manner not explicitly authorized in writing by Franchisor.
C. Developer must immediately notify Franchisor in writing of any apparent infringement of

or challenge to Developer’s use of any Proprietary Mark, or claim by any person of any rights in any
Proprietary Mark or similar trade name, trademark, or service mark of which Developer becomes aware.
Developer must not communicate with any person other than Franchisor and its counsel regarding any
infringement, challenge or claim. Franchisor has sole discretion to take action it deems appropriate and the
right to exclusively control any litigation, U.S. Patent and Trademark Office proceeding or other
administrative proceeding arising out of any infringement, challenge, or claim or otherwise relating to any
Proprietary Mark.
D. Franchisor has registered the domain name www.stretchlab.com. Developer acknowledges

that Franchisor is the lawful and sole owner of this domain name, which incorporates the trademark
STRETCH LAB. Developer agrees not to register the trademark STRETCH LAB or any of the Proprietary
Marks now or hereafter owned by Franchisor or any abbreviation, acronym or variation of the Proprietary
Marks, or any other name that could be deemed confusingly similar, as Internet domain names, including,
but not limited to, generic and country code top level domain names available at the present time or in the
future.
E. Developer agrees and acknowledges that this Agreement does not grant Developer any
rights whatsoever to use any Proprietary Mark, and that such rights are only granted through Developer’s
timely execution of a Franchise Agreement that will govern the operation of a STRETCH LAB Studio that
Developer is required to open pursuant to the Development Schedule.

14. TERMINATION
A. Franchisor may terminate this Agreement for a material default of this Agreement by
Developer and all rights granted herein shall automatically terminate upon written notice to Developer,
upon the occurrence of any of the following:
(1) If Developer becomes insolvent, makes a general assignment for the benefit of
creditors; files a voluntary petition in bankruptcy, or an involuntary petition is filed against Developer in
bankruptcy; or Developer is adjudicated bankrupt; or if a bill in equity or other proceeding for the
appointment of a receiver of Developer or other custodian for Developer or assets is filed and consented to
by Developer; or if a receiver or other custodian (permanent or temporary) of Developer’s assets or
property, or any part thereof, is appointed by a court of competent jurisdiction; or if a proceeding for a
composition of creditors under any state or federal law should be initiated against Developer; or if a final
judgment remains unsatisfied or of record for thirty (30) days or longer, (unless supersedeas bond is filed);
or if Developer is dissolved; or if execution is levied against Developer; or if a suit to foreclose any lien or
mortgage against the premises or Studio is levied; or if the real or personal property of Studio is sold after
levy thereon by any sheriff, marshal or law officer;
(2) If Developer or any of its Principals fail to comply with Section 11 of this
Agreement;
(3) If Developer or a Principal discloses the contents of the Manuals or other

confidential information contrary to this Agreement;
(4) If an immediate threat or danger to public health or safety results from the
operation of a Studio operated by Developer under a Franchise Agreement;
(5) If Developer or a Principal has made material misrepresentations in connection

with its application for the franchise;
(6) If Developer fails on three (3) or more occasions within any one (1) year period to
comply with one (1) or more provisions of this Agreement, whether or not such failures to comply are cured
after notice thereof is delivered to Developer; or
(7) Failure to comply with the conditions of transfer of any interest in Developer as
required of this Agreement.
B. Franchisor may terminate this Agreement and all rights granted herein, upon thirty (30)
days written notice to Developer, or a less time as specified below, for a material default of this Agreement,
which shall constitute good cause for termination and the failure of Developer to cure the good cause for
termination within the notice period. Good cause for termination shall be the occurrence of any one of the
following events of default:
(1) If Developer fails to meet the development requirements set forth in the
Development Schedule;
(2) If Developer fails to develop, open and operate each Studio and execute each
Franchise Agreement in compliance with this Agreement;
(3) If Developer fails to designate a qualified replacement Representative;

(4) If Developer misappropriates, misuses or makes any unauthorized use of the
Proprietary Marks or materially impairs the goodwill associated with the Proprietary Marks or with the
System and does not cure such default following written notice from Franchisor;
(5) If Developer, fails, refuses or is unable to promptly pay when due any monetary
obligation to Franchisor or its affiliate required by this Agreement, or by any Franchise Agreement or any
other agreement between the parties and does not cure the monetary default within fourteen (14) days
following written notice from Franchisor;
(6) If Developer fails to correct a deficiency of a health, sanitation, or safety issue after
notice of such deficiency is issued by a local, state, or federal agency or regulatory authority; or
(7) If Developer fails to comply with any other material term or material condition
imposed by this Agreement or any Franchise Agreement executed pursuant thereto.
C. Failure of Developer to cure the default within the specified time, or a longer period of
time as applicable law may require, will result in Developer’s rights under this Agreement to be terminated
effective on the expiration of the notice period, and without further notice to Developer.
D. Upon termination of this Agreement, Developer has no right to establish or operate any
Studio for which an individual Franchise Agreement has not already been executed by both Franchisor and
Developer, as well as delivered to Developer, as of the date of termination. Franchisor, effective upon
termination of this Agreement, shall have the absolute right and is entitled to establish, and to license others
to establish, STRETCH LAB Studios in the Development Area, except as may be otherwise provided under
any Franchise Agreement which is then in effect between Franchisor and Developer.
E. No default under this Agreement shall constitute a default under any Franchise Agreement
between the parties, unless Developer’s acts or omissions also violate the terms and conditions of the
applicable Franchise Agreement.
F. No right or remedy herein conferred upon or reserved to the Franchisor is exclusive of any
other right or remedy provided or permitted by law or in equity.
15. EFFECT OF TERMINATION AND EXPIRATION
All obligations of Franchisor and Developer under this Agreement, which expressly or by their
nature survive the expiration or termination of this Agreement, continue in full force and effect after the
expiration or termination of this Agreement and until they are satisfied in full or by their nature expire.
16. TRANSFER OF INTEREST
A. BY FRANCHISOR
Franchisor has the absolute right to transfer or assign this Agreement and all or any part of its rights,
duties or obligations to any person or legal entity without the consent of or notice to Developer. This
Agreement shall inure to the benefit of, and be binding on the successors and assigns of Franchisor.

B. DEVELOPER MAY NOT ASSIGN WITHOUT APPROVAL OF THE
FRANCHISOR
Developer understands and acknowledges that the rights and duties created by this Agreement are
personal to Developer and its owners and that Franchisor has granted these rights to Developer in reliance
upon the individual or collective character, skill, aptitude, attitude, business ability and financial capacity
of Developer and/or its owners. Unless otherwise provided with respect to an assignment to an entity
controlled by Developer as provided in Section 16(D), none of these rights nor any ownership interest in
Developer may be voluntarily, involuntarily, directly or indirectly, assigned, sold, conveyed, pledged, sub-
franchised or otherwise transferred by Developer or its owners (including by merger or consolidation, by
issuance of additional securities representing an ownership interest in Developer, by conversion of a general
partnership to a limited partnership, by transfer or creation of an interest as a general partner of a
partnership, by transfer of an interest in Developer or in this Agreement in a divorce proceeding, or if
Developer or an owner of Developer dies, by will, declaration of or transfer in trust or the laws of the
intestate succession) without the approval of Franchisor. Any attempted assignment or transfer without
such approval will constitute a breach of this Agreement and will not transfer any rights or interests to such
assignee or transferee.
C. CONDITIONS FOR APPROVAL OF ASSIGNMENT
If Developer is in substantial compliance with this Agreement, Franchisor shall not unreasonably
withhold its approval of an assignment or transfer contemplated by Section 16(B) so long as the proposed
assignee or transferer has good and moral character, sufficient business experience and aptitude to develop
and own and operate Studios, and otherwise meets Franchisor’s then-current standards for developers and
System franchisees. Franchisor may require that any one or more of the following conditions be met before,
or concurrently with, the effective date of any such assignment or transfer:
(1) All the accrued monetary obligations of Developer or any of its affiliates and all
other outstanding obligations to Franchisor or its affiliate arising under this Agreement or any Franchise
Agreement or other agreement between them and all trade accounts and any other debts to Franchisor, of
whatsoever nature, prior to the transfer becoming effective shall be satisfied;
(2) Developer and its affiliates are not in material default of any substantive provision
of this Agreement, any amendment hereof or successor hereto, or any Franchise Agreement granted
pursuant to its terms, or other agreement between Developer or any of its affiliates and Franchisor or its
affiliate;
(3) Developer and its Principals, as applicable, shall have executed a general release,
in a form satisfactory to Franchisor, releasing Franchisor of any and all claims against Franchisor and its
affiliate and their respective past and present partners, the past and present officers, directors, shareholders,
partners, agents, representatives, independent contractors, servants and employees of each of them, in their
corporate and individual capacities, including, without limitation, claims arising under or related to this
Agreement and any other agreements between Developer and Franchisor, or under federal, state or local
laws, rules, and regulations or orders;
(4) The transferee shall demonstrate to Franchisor’s satisfaction that the transferee
meets the criteria considered by Franchisor when reviewing a prospective developer’s application for
development rights, including, but not limited to, Franchisor’s managerial and business experience
standards, that the transferee possesses good moral character, business reputation and credit rating; that the
transferee has the aptitude, financial resources and capital committed for the operation of the business, and

the geographic proximity of other territories with respect to which transferee has been granted development
rights or of other STRETCH LAB Studios operated by transferee, if any;
(5) The transferee must, at Franchisor’s option, either (i) execute Franchisor’s then-
current form of development agreement to govern the reminder of the Development Schedule, or (ii) sign
a written assumption agreement, in a form prescribed by Franchisor, assuming full, unconditional, joint and
several liability from the date of the transfer of all obligations, covenants and agreements of Developer in
this Agreement. If transferee is a corporation, limited liability company or a partnership, transferee’s
shareholders, partners, members or other investors, as applicable, shall also execute the form of agreement
Franchisor designates;
(6) Developer shall pay a transfer fee equal to fifty percent (50%) of the Development
Fee to Franchisor at the time of transfer, unless the transfer is being made: (i) to an immediate family
member of Developer that Franchisor approves pursuant to Section 16(F); or (ii) in the form of an
encumbrance of the assets of any Franchised Business (or a subordinating Franchisor’s security interest in
such assets) as a necessary condition to obtain SBA or traditional bank financing;
(7) Developer acknowledges and agrees that each condition, which must be met by the
transferee, is reasonable and necessary; and
(8) Developer must pay any referral fees or commissions that may be due to any
franchise broker, sales agent or other third party upon the occurrence of such assignment.
Franchisor’s consent to a transfer of any interest in Developer described herein shall not constitute
a waiver of any claims it may have against the transferring party, nor shall it be deemed a waiver of
Franchisor’s right to demand exact compliance with any of the terms of this Agreement by the transferee.
Upon an approved transfer under this Section, Developer will only be bound by, and liable in connection
with, its post-term obligations under this Agreement.
D. ASSIGNMENT TO A CORPORATION OR LIMITED LIABILITY COMPANY
(1) Notwithstanding the provisions of this Section 16 of this Agreement, upon thirty
(30) days’ prior written notice to Franchisor, and without payment of a transfer fee, Developer may assign
this Agreement to a corporation or limited liability company that conducts no business other than the
development and/or operation of STRETCH LAB Studios. Developer shall be the owner of all the voting
stock or interest of the corporation or limited liability company, or if Developer is more than one individual,
each individual shall have the same proportionate ownership interest in the corporation as he had in
Developer before the transfer. Developer and each of its Principals, as applicable, may transfer, sell or
assign their respective interests in Developer, by and amongst themselves with Franchisor’s prior written
consent, which consent shall not be unreasonably withheld; but may be conditioned on compliance with
Section 11, except that such transfer, sale or assignment shall not effect a change in the controlling interest
in Developer.
(2) Any person who is or becomes a shareholder or member of Developer or has or

acquires beneficial ownership of any shares of stock equal to or greater than ten percent (10%) ownership
interest in Developer must execute an agreement in substantially the form of the attached Guaranty and
Assumption of Obligations undertaking to be bound jointly and severally to all provisions of this
Agreement. Developer must furnish Franchisor at any time upon request a certified copy of the articles of
incorporation or articles of organization and a list, in a form Franchisor requires, of all shareholders or
members of record and all persons having beneficial ownership of shares of stock, reflecting their respective
interests in Developer.

E. RIGHT OF FIRST REFUSAL
If Developer receives and desires to accept any bona fide offer to transfer an ownership interest in
this Agreement from a third party, then the Developer shall promptly notify Franchisor in writing and send
Franchisor an executed copy of the contract of transfer. Franchisor shall have the right and option,
exercisable within thirty (30) days after actual receipt of such notification or of the executed contract of
transfer which shall describe the terms of the offer, to send written notice to Developer that Franchisor
intends to purchase the Developer’s interest on the same terms and conditions offered by the third party.
Closing on the purchase must occur within sixty (60) days from the date of notice by Franchisor to the
Developer of Franchisor’s election to purchase. If Franchisor elects not to accept the offer within the thirty
(30) day period, Developer shall have a period not to exceed sixty (60) days to complete the transfer subject
to the conditions for approval set forth in Section 16(C) of this Agreement. Any material change in the
terms of any offer before closing shall constitute a new offer subject to the same rights of first refusal by
Franchisor as in the case of an initial offer. Failure of Franchisor to exercise the option afforded by this
Section 16 shall not constitute a waiver of any other provision of this Agreement. If the offer from a third
party provides for payment of consideration other than cash or involves certain intangible benefits,
Franchisor may elect to purchase the interest proposed to be sold for the reasonable cash equivalent, or any
publicly-traded securities, including its own, or intangible benefits similar to those being offered. If the
parties cannot agree within a reasonable time on the reasonable cash equivalent of the non-cash part of the
offer, then such amount shall be determined by an independent appraiser designated by Franchisor, and his
determination shall be binding.
F. DEATH OR DISABILITY
Upon the death or permanent disability of Developer (or the managing shareholder, managing
member or partner), the executor, administrator, conservator or other personal representative of that person,
or the remaining shareholders, partners or members, must appoint a competent manager that is approved
by Franchisor within ninety (90) days from the date of death or permanent disability (the “90 Day Period”).
Before the end of the 90 Day Period, the appointed manager must attend and successfully complete
Franchisor’s training program and must either execute Franchisor’s then-current form of area development
agreement for the unexpired term of this Agreement, or furnish a personal guaranty of any partnership,
corporate or limited liability company Developer’s obligations to Franchisor and Franchisor’s affiliates. If
the Studio is not being managed by a Franchisor approved manager during the 90 Day Period, Franchisor
is authorized, but is not required, to immediately appoint a manager to maintain the operations of
Developer’s Studios for and on behalf of Developer until an approved assignee is able to assume the
management and operation of the Studio. Franchisor’s appointment of a manager of the Studio does not
relieve Developer of his obligations, and Franchisor is not liable for any debts, losses, costs or expenses
incurred in the operations of the Studio or to any creditor of Developer for any products, materials, supplies
or services purchased by the Studio during any period in which it is managed by Franchisor’s appointed
manager. Franchisor has the right to charge a reasonable fee for management services and to cease to
provide management services at any time. Franchisor’s right of first refusal set forth in Section 16(E) will
not apply to a transfer under this Section if the transferee is an immediate family member of Developer that
Franchisor approves.
G. PUBLIC OR PRIVATE OFFERINGS
(1) Developer acknowledges that the written information used to raise or secure funds
can reflect upon Franchisor. Developer agrees to submit any written information intended to be used for
that purpose to Franchisor before its inclusion in any registration statement, prospectus or similar offering
circular or memorandum. This requirement applies under the following conditions: (i) if Developer
attempts to raise or secure funds by the sale of securities in Developer or any affiliate of Developer

(including common or preferred stock, bonds, debentures or general or limited partnership interest) and (ii)
if any of its owners attempt to raise or secure funds by the sale of securities in Developer or any affiliate of
Developer (including common or preferred stock, bonds, debentures or general or limited partnership
interests) Developer (or any of its owners) agrees not to use the written materials submitted to Franchisor
or any other written materials to raise or secure funds unless and until Franchisor approves of the language.
No information respecting Franchisor or its affiliate shall be included in any securities disclosure document,
unless that information has been furnished to Franchisor, in writing, pursuant to the written request of the
Developer. The written request shall state the specific purpose for which the information is to be used.
Should Franchisor, in its sole discretion, object to any reference to Franchisor or its affiliate or any of their
businesses in the offering literature or prospectus, the literature or prospectus shall not be used unless and
until the objections of Franchisor are withdrawn. Franchisor assumes no responsibility for the offering
whatsoever. Developer must pay Franchisor a public offering fee of Three Thousand Five Hundred Dollars
($3,500) for the costs to Franchisor to review the information. The written consent of Franchisor pursuant
to this Paragraph G does not imply or constitute the approval of Franchisor with respect to the method of
financing, the offering literature submitted to Franchisor or any other aspect of the offering.
(2) The prospectus or other literature utilized in any offering must contain the
following language in bold-face type on the first textual page:
“NEITHER STRETCH LAB FRANCHISE, LLC NOR ITS AFFILIATE NOR ANY
OF ITS AFFILIATE’S SUBSIDIARIES IS DIRECTLY OR INDIRECTLY THE
ISSUER OF THE SECURITIES OFFERED. NEITHER STRETCH LAB
FRANCHISE, LLC NOR ITS AFFILIATE NOR ANY OF ITS AFFILIATE’S
SUBSIDIARIES ASSUMES ANY RESPONSIBILITY WITH RESPECT TO THIS
OFFERING AND/OR THE ADEQUACY OR ACCURACY OF THE
INFORMATION SET FORTH, INCLUDING ANY STATEMENTS MADE WITH
RESPECT TO ANY OF THEM. NEITHER STRETCH LAB FRANCHISE, LLC
NOR ITS AFFILIATE NOR ANY OF ITS AFFILIATE’S SUBSIDIARIES
ENDORSES OR MAKES ANY RECOMMENDATION WITH RESPECT TO THE
INVESTMENT CONTEMPLATED BY THIS OFFERING.”
(3) Developer and each of its owners agrees to indemnify, defend and hold harmless
Franchisor and its affiliate, and their respective officers, directors, employees and agents, from any and all
claims, demands, liabilities, and all costs and expenses (including reasonable attorneys’ fees) incurred by
Franchisor as the result of the offer or sale of securities. This Agreement applies to any and all claims,
demands, liabilities, and all costs and expenses (including reasonable attorneys’ fees) asserted by a
purchaser of any security or by a governmental agency. Franchisor has the right (but not the obligation) to
defend any claims, demands or liabilities and/or to participate in the defense of any action to which
Franchisor or its affiliate or any of their respective officers, directors, employees or agents is named as a
party.
H. NOTICE TO FRANCHISOR
Provided Developer is not then a public company, if any person holding an interest in Developer
(other than Developer or a Principal, which parties shall be subject to the provisions set forth above)
transfers such interest, then Developer shall promptly notify Franchisor of such proposed transfer in writing
and provide information as Franchisor may reasonably request before the transfer. The transferee may not
be one of Franchisor’s competitors. The transferee must execute a Confidentiality Agreement and Ancillary
Covenants Not to Compete in the form then required by Franchisor, which form shall be in substantially
the same form attached hereto as Exhibit E. Franchisor also reserves the right to designate the transferee
as one of the Principals. If Developer is a public company, this provision applies only to transfers in interest

by Principals or to any person or entity controlling more than ten percent (10%) of Developer’s voting
stock.
17. APPROVALS
A. Wherever this Agreement requires the prior approval or consent of Franchisor, Developer
shall make a timely written request to Franchisor for such approval or consent.
B. Franchisor makes no warranties or guarantees upon which Developer may rely and
assumes no liability or obligation to Developer or to any third party to which it would not otherwise be
subject, by providing any waiver, approval, advise, consent, or services to Developer in connection with
this Agreement, or by any reason of neglect, delay or denial of any request therefor.
18. NONWAIVER
A. No failure of Franchisor to exercise any power reserved to it by this Agreement, or to insist

upon strict compliance by Developer or Principals with any obligation or condition hereunder, and no
custom or practice of the parties at variance with the terms hereof, shall constitute a waiver or estoppel of
Franchisor’s right to demand exact compliance with any of the terms herein and Developer and the
Principals warrant and undertake that it shall not rely on such failure, custom or practice. Waiver by
Franchisor of any particular default by Developer or any of the Principals shall not affect or impair
Franchisor’s rights with respect to any subsequent default of the same, similar or different nature, nor shall
delay, forbearance, or omission of Franchisor to exercise any power or right arising out of any breach or
default by its other developers or by Developer of any of the terms, provisions, or covenants hereof, affect
or impair Franchisor’s right to exercise the same, nor shall such constitute a waiver by Franchisor of any
right hereunder, or the right to declare any subsequent breach or default and to terminate this Agreement
prior to the expiration of its term. Subsequent acceptance by Franchisor of any payments due to it hereunder
shall not be deemed to be a waiver by Franchisor of any preceding breach by Developer of any terms,
covenants or conditions of this Agreement.
B. All rights and remedies of the parties hereto shall be cumulative and not alternative, in
addition to and not exclusive of any other rights or remedies which are provided for herein or which may
be available at law or in equity in case of any breach, failure or default or threatened breach, failure or
default of any term, provision or condition of this Agreement, the rights and remedies of the parties hereto
shall be continuing and shall not be exhausted by any one or more uses thereof, and may be exercised at
any time or from time to time as often as may be expedient; and any option or election to enforce any such
right or remedy may be exercised or taken at any time and from time to time. The expiration or early
termination of this Agreement shall not discharge or release Developer from any liability or obligation then
accrued, or any liability or obligation continuing beyond, or arising out of, the expiration or early
termination of this Agreement.
19. DEVELOPER’S RECORDS AND REPORTS
A. Developer must keep accurate records concerning all transactions and written
communications between Franchisor and Developer relating to the development and operation of Studios
in the Development Area. Franchisor’s duly authorized representative has the right, following reasonable
notice, at all reasonable hours of the day to examine all Developer’s records with respect to the subject
matter of this Agreement, and has full and free access to records for that purpose and for the purpose of
making extracts. All records must be kept available for at least three (3) years after preparation.

B. Developer must furnish to Franchisor monthly written reports regarding Developer’s
progress on the development of STRETCH LAB Studios under this Agreement.
20. NOTICES AND PAYMENTS
All written notices and reports permitted or required to be delivered by the provisions of this
Agreement or of the Manuals shall be deemed so delivered at the time delivered by hand or by e-mail with
receipt confirmed by the receiving party or one (1) business day after sending by overnight courier with
delivery confirmed and addressed to the party to be notified at its most current address of which the
notifying party has been notified. The following addresses for the parties shall be used unless and until a
different address has been designated by written notice to the other party:
Notices to Franchisor:

Irvine, California 92614
With an additional copy to:
Fisher Zucker, LLC

Attn: Lane Fisher
21 South 21st Street
Philadelphia, PA 19103
Notice to Developer:
______________________________
______________________________
______________________________
______________________________
ATTN: ________________________
21. GOVERNING LAW
A. This Agreement is governed by the laws of the state of California without reference to this
state’s conflict of laws principles (subject to state law), except that: (i) any disputes or actions involving
any non-competition covenants set forth in any agreement with us, including the interpretation and
enforcement thereof, must be governed by the law of the state where the Studio is located.; and (ii) any
franchise-specific or franchise-applicable laws of California, including those related to pre-sale disclosure
and the franchise relationship generally, will not apply to this Agreement or franchise awarded hereunder
unless the awarding of said franchise specifically falls within the scope of such California laws, regulations
or statutes without reference to and independent of any reference to this choice of law provision.
22. ARBITRATION AND OTHER DISPUTE RESOLUTION PROVISIONS
A. Developer must first bring any claim or dispute between Developer and Franchisor to
Franchisor’s management and make every effort to resolve the dispute internally. Developer must exhaust
this internal dispute resolution procedure before Developer may bring Developer’s dispute before a third

party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration
of this Agreement.
B. At Franchisor’s option, all claims or disputes between Developer and Franchisor (or its
affiliates) arising out of, or in any way relating to, this Agreement or any other agreement by and between
Developer and Franchisor (or its affiliates), or any of the parties’ respective rights and obligations arising
from such agreement, which are not first resolved through the internal dispute resolution procedure sent
forth in Section 22(A) above, will be submitted first to mediation to take place at Franchisor’s then-current
headquarters under the auspices of the American Arbitration Association (“AAA”), in accordance with
AAA’s Commercial Mediation Rules then in effect. Before commencing any legal action against
Franchisor or its affiliates with respect to any such claim or dispute, Developer must submit a notice to
Franchisor, which specifies, in detail, the precise nature and grounds of such claim or dispute. Franchisor
will have a period of thirty (30) days following receipt of such notice within which to notify Developer as
to whether Franchisor or its affiliates elects to exercise its option to submit such claim or dispute to
mediation. Developer may not commence any action against Franchisor or its affiliates with respect to any
such claim or dispute in any court unless Franchisor fails to exercise its option to submit such claim or
dispute to mediation, or such mediation proceedings have been terminated either: (i) as the result of a written
declaration of the mediator(s) that further mediation efforts are not worthwhile; or (ii) as a result of a written
declaration by Franchisor. Franchisor’s rights to mediation, as set forth herein, may be specifically enforced
by Franchisor. Each party will bear its own cost of mediation and Franchisor and Developer will share
mediator fees equally. This agreement to mediate will survive any termination or expiration of this
Agreement. The parties will not be required to first attempt to mediate a controversy, dispute, or claim
through mediation as set forth in this Section 22(B) if such controversy, dispute, or claim concerns an
allegation that a party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any
federally protected intellectual property rights in the Proprietary Marks, the System, or in any confidential
information; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Developer’s
payment obligations under this Agreement.
C. Developer and Franchisor believe that it is important to resolve any disputes amicably,
quickly, cost effectively and professionally, and to return to business as soon as possible. Subject to Sections
22(D)-(E) of this Agreement, Developer and Franchisor have agreed that the provisions of this Article 22
support these mutual objectives and, therefore, agree that any litigation, claim, dispute, suit, action,
controversy, or proceeding of any type whatsoever including any claim for equitable relief and/or where
either party is acting as a “private attorney general,” suing pursuant to a statutory claim or otherwise,
between or involving Developer and Franchisor on whatever theory and/or facts based, and whether or not
arising out of this Agreement, (“Claim”) will be processed in the following manner:
a. Developer and Franchisor each expressly waives all rights to any court proceeding, except
as expressly provided in Sections 22(B) and 22(C), below.
b. All Claims shall be submitted to and resolved by binding arbitration in Orange County,
California, before and in accordance with the arbitration rules of the American Arbitration
Association. Judgment upon the award rendered by the arbitrator shall be entered in any
Court having jurisdiction thereof.
c. Franchisor and Developer agree that any arbitration between Franchisor and Developer
shall be of Developer’s individual claim and that the claim subject to arbitration shall not
be arbitrated on a class-wide basis.

d. This arbitration provision shall be deemed to be self-executing, and in the event either party
fails to appear at any properly noticed arbitration proceeding, an award may be entered
against such party notwithstanding said failure to appear.
e. In no event shall Franchisor be liable to Developer for punitive damages in any action
arising out of or relating to this Agreement, or any breach, termination or cancellation
hereof.
f. Any arbitration proceeding conducted under this Section, including all demands, filings
and evidence submitted in connection therewith, must be kept strictly confidential, unless
Franchisor agrees otherwise in writing.
D. Developer acknowledges and agrees that irreparable harm could be caused to Franchisor
by Developer’s violation of certain provisions of this Agreement and, as such, in addition to any other relief
available at law or equity, Franchisor shall be entitled to obtain in any court of competent jurisdiction,
without bond, restraining orders or temporary or permanent injunctions in order to enforce, among other
items, the provisions of this Agreement relating to: (i) Developer’s use of the Proprietary Marks and
confidential information; (ii) the in-term covenant not to compete, as well as any other violations of the
restrictive covenants set forth in this Agreement; (iii) Developer’s obligations on termination or expiration
of this Agreement; (iv) disputes and controversies based on or arising under the Lanham Act, as now or
hereafter amended; (v) disputes and controversies involving enforcement of the Franchisor’s rights with
respect to confidentiality under this Agreement; and (vi) to prohibit any act or omission by Developer or
its employees that constitutes a violation of applicable law, threatens Franchisor’s franchise system or
threatens other franchisees of Franchisor. Developer’s only remedy if such an injunction is entered will be
the dissolution of the injunction, if appropriate, and Developer waives all damage claims if the injunction
is wrongfully issued.
E. Franchisor’s officers, directors, shareholders, agents and/or employees are express third
party beneficiaries of the provisions of this Agreement, including the dispute resolution provisions set forth
in Section 22 of this Agreement, each having authority to specifically enforce the right to mediate claims
asserted against such person(s) by Developer.
F. As a condition precedent to commencing an action for damages or for violation or breach

of this Agreement, Developer must notify Franchisor within thirty (30) days after the occurrence of the
violation or breach, and failure to timely give such notice shall preclude any claim for damages.
G. Developer shall not withhold all or any part of any payment to Franchisor or any of its
affiliates on the grounds of Franchisor’s alleged nonperformance or as an offset against any amount
Franchisor or any of Franchisor’s affiliates allegedly may owe Developer under this Agreement or any
related agreements.
H. Developer further agrees that no cause of action arising out of or under this Agreement
may be maintained by Developer against Franchisor unless brought before the expiration of one (1) year
after the act, transaction or occurrence upon which such action is based or the expiration of one year after
the Developer becomes aware of facts or circumstances reasonably indicating that Developer may have a
claim against Franchisor hereunder, whichever occurs sooner, and that any action not brought within this
period shall be barred as a claim, counterclaim, defense, or set-off. Developer hereby waives the right to
obtain any remedy based on alleged fraud, misrepresentation, or deceit by Franchisor, including, without
limitation, rescission of this Agreement, in any mediation, judicial, or other adjudicatory proceeding arising
hereunder, except upon a ground expressly provided in this Agreement, or pursuant to any right expressly

granted by any applicable statute expressly regulating the sale of franchises, or any regulation or rules
promulgated thereunder.
I. Developer hereby waives to the fullest extent permitted by law, any right to or claim for
any punitive, exemplary, incidental, indirect, special or consequential damages (including, without
limitation, lost profits) against Franchisor arising out of any cause whatsoever (whether such cause be based
in contract, negligence, strict liability, other tort or otherwise) and agrees that in the event of a dispute, that
Developer’s recovery is limited to actual damages. If any other term of this Agreement is found or
determined to be unconscionable or unenforceable for any reason, the foregoing provisions shall continue
in full force and effect, including, without limitation, the waiver of any right to claim any consequential
damages. Nothing in this Section or any other provision of this Agreement shall be construed to prevent
Franchisor from claiming and obtaining expectation or consequential damages, including lost future
royalties for the balance of the term of this Agreement if it is terminated due to Developer’s default, which
the parties agree and acknowledge Franchisor may claim under this Agreement.
J. THE PARTIES HEREBY AGREE TO WAIVE TRIAL BY JURY IN ANY ACTION,

PROCEEDING OR COUNTERCLAIM, WHETHER AT LAW OR EQUITY, REGARDLESS OF
WHICH PARTY BRINGS SUIT. THIS WAIVER SHALL APPLY TO ANY MATTER WHATSOEVER
BETWEEN THE PARTIES HERETO WHICH ARISES OUT OF OR IS RELATED IN ANY WAY TO
THIS AGREEMENT OR THE PERFORMANCE OF EITHER PARTY.
K. THE PARTIES AGREE THAT ALL PROCEEDINGS ARISING OUT OF OR

RELATED TO THIS AGREEMENT WILL BE CONDUCTED ON AN INDIVIDUAL, NOT A CLASS-
WIDE BASIS, AND THAT ANY PROCEEDING BETWEEN DEVELOPER, DEVELOPER’S
GUARANTORS AND FRANCHISOR OR ITS AFFILIATES/OFFICERS/EMPLOYEES MAY NOT BE
CONSOLIDATED WITH ANY OTHER PROCEEDING BETWEEN FRANCHISOR AND ANY
OTHER THIRD PARTY.
23. ENFORCEMENT
A. SEVERABILITY AND SUBSTITUTION OF VALID PROVISIONS
(1) Except as expressly provided to the contrary in this Agreement, each section,
paragraph, term and provision of this Agreement, is considered severable and if, for any reason, any portion
of this Agreement is held to be invalid, contrary to, or in conflict with any applicable present or future law
or regulation in a final, unappealable ruling issued by any court, agency or tribunal with competent
jurisdiction in a proceeding to which Franchisor is a party, that ruling shall not impair the operation of, or
have any other effect upon, other portions of this Agreement as may remain otherwise intelligible, which
shall continue to be given full force and effect and bind the parties to this Agreement, although any portion
held to be invalid shall be deemed not to be a part of this Agreement from the date the time for appeal
expires, if Developer is a party, otherwise upon Developer’s receipt of a notice of non-enforcement from
Franchisor.
(2) If any applicable and binding law or rule of any jurisdiction requires a greater prior
notice of the termination of this Agreement than is required in this Agreement, or the taking of some other
action not required, or if under any applicable and binding law or rule of any jurisdiction, any provision of
this Agreement or any specification, standard or operating procedure Franchisor prescribes is invalid or
unenforceable, the prior notice and/or other action required by law or rule shall be substituted for the
comparable provisions, and Franchisor has the right, in its sole discretion, to modify the invalid or
unenforceable provision, specification, standard or operating procedure to the extent required to be valid
and enforceable. Developer agrees to be bound by any promise or covenant imposing the maximum duty

permitted by law which is prescribed within the terms of any provision of this Agreement, as though it were
separately articulated in and made a part of this Agreement, that may result from striking from any of the
provisions, or any specification, standard or operating procedure Franchisor prescribes, any portion or
portions which a court may hold to be unenforceable in a final decision to which Franchisor is a party, or
from reducing the scope of any promise or covenant to the extent required to comply with a court order.
Modifications to this Agreement shall be effective only in that jurisdiction, unless Franchisor elects to give
them greater applicability, and this Agreement shall be enforced as originally made and entered into in all
other jurisdictions.
B. EXCEPTIONS
Neither Franchisor nor Developer are liable for loss or damage or deemed to be in breach of this
Agreement if its failure to perform its obligations results from: (1) transportation shortages, inadequate
supply of labor, material or energy, or the voluntary foregoing of the right to acquire or use any of the
foregoing in order to accommodate or comply with the orders, requests, regulations, recommendations or
instructions of any federal, state or municipal government or any department or agency; (2) compliance
with any law, ruling, order, regulation, requirement or instruction of any federal, state, or municipal
government or any department or agency; (3) acts of God; (4) acts or omissions of the other party; (5) fires,
strikes, embargoes, war or riot; or (6) any other similar event or cause. Any delay resulting from any of
these causes shall extend performance accordingly or excuse performance, in whole or in part, as may be
reasonable.
C. RIGHTS OF PARTIES ARE CUMULATIVE
The rights of Franchisor and Developer under this Agreement are cumulative and no exercise or
enforcement by Franchisor or Developer of any right or remedy precludes the exercise or enforcement by
Franchisor or Developer of any other right or remedy which Franchisor or Developer is entitled by law to
enforce.
D. COSTS AND ATTORNEYS’ FEES
If Developer is in breach or default of any monetary or non-monetary obligation under this

Agreement or any related agreement between Developer and Franchisor and/or Franchisor’s affiliates, and
Franchisor engages an attorney to enforce Franchisor’s rights (whether or not formal judicial proceedings
are initiated), Developer must reimburse Franchisor for all costs/expenses incurred in connection with
enforcing its rights under this Agreement including all reasonable attorneys’ fees, court costs and arbitration
expenses. If Developer institutes any legal action to interpret or enforce the terms of this Agreement, and
Developer’s claim in such action is denied or the action is dismissed, Franchisor is entitled to recover
Franchisor’s reasonable attorneys’ fees, and all other reasonable costs and expenses incurred in defending
against same, and to have such an amount awarded as part of the judgment in the proceeding.
E. VARIANCES
Developer acknowledges that Franchisor has and may at different times approve exceptions or
changes from the uniform standards of the System in Franchisor’s absolute sole discretion, which
Franchisor deems desirable or necessary under particular circumstances. Developer understands that he
has no right to object to or automatically obtain such variances, and any exception or change must be
approved in advance from Franchisor in writing. Developer understands existing Developers may operate
under different forms of agreements and that the rights and obligations of existing Developers may differ
materially from this Agreement.

F. BINDING EFFECT
This Agreement is binding upon the parties of this Agreement and their respective executors,
administrators, heirs, assigns and successors in interest, and shall not be modified except by written
agreement signed by both Developer and Franchisor.
G. CONSTRUCTION/INTEGRATION CLAUSE
This Agreement, all exhibits to this Agreement and all ancillary agreements executed
contemporaneously with this Agreement constitute the entire agreement between the parties with reference
to the subject matter of this Agreement and supersede any and all prior negotiations, undertakings,
representations, and agreements. Nothing in this Agreement or in any related agreement, however, is
intended to disclaim the representations Franchisor made in the FDD that Franchisor furnished to
Developer. Developer acknowledges that Developer is entering into this Agreement, and all ancillary
agreements executed contemporaneously with this Agreement, as a result of Developer’s own independent
investigation of the franchised business and not as a result of any representations about Franchisor made
by Franchisor’s shareholders, officers, directors, employees, agents, representatives, independent
contractors, attorneys, or Developers, which are contrary to the terms set forth in this Agreement or of any
franchise disclosure document, offering circular, prospectus, or other similar document required or
permitted to be given to Developer pursuant to applicable law.
Developer hereby acknowledges and further represents and warrants to Franchisor that:
1. Developer has placed no reliance on any oral or written statements, whether

referred to as representations, warranties, inducements, or otherwise, which are not contained in this
Agreement or in the Franchise Disclosure Document;
2. Developer has entered into this Agreement after making an independent

investigation of Franchisor’s operations and the System;
3. Franchisor has not made any guarantee or provided any assurance that the business
location will be successful or profitable regardless of whether Franchisor may have approved of the
franchise or site location;
4. Developer has (a) read this Agreement in its entirety and understands its contents;
(b) been given the opportunity to clarify any provisions that Developer did not understand and (c) had the
opportunity to consult with professional advisors regarding the operation and effect of the Agreement and
the operation of the System;
5. Developer has, together with its advisors, sufficient knowledge and experience in
financial and business matters to make an informed decision with respect to the franchise offered by
Franchisor; and
6. Developer has received a copy of the Franchise Disclosure Document not later
than the first personal meeting held to discuss the sale of a franchise, or fourteen (14) calendar days before
execution of this Agreement or fourteen (14) calendar days before any payment of any consideration.
Except as may have been disclosed at Item 19 of Franchisor’s Franchise Disclosure Document,
Developer represents and warrants to Franchisor that no claims, representations, or warranties regarding
the earnings, sales, profits, success or failure of the franchised business have been made to Developer and
no such claims, representations or warranties have induced Developer to enter into this Agreement.

Except for those changes permitted to be made unilaterally by Franchisor, no amendment, change
or variance from this Agreement is binding on either party unless mutually agreed to by the parties and
executed by their authorized officers or agents in writing.
24. CAVEAT
A. The success of the business venture contemplated to be undertaken by this Agreement is

speculative and depends, to a large extent, upon the ability of the Developer as an independent business
person, and the active participation of Developer in the daily affairs of the business as well as other factors.
Franchisor does not make any representation or warranty, express or implied, as to the potential success of
the business venture contemplated hereby.
B. Developer acknowledges that it has entered into this Agreement after making an
independent investigation of Franchisor’s operations and not upon any representation as to gross sales,
volume, potential earnings or profits which Developer in particular might be expected to realize, nor has
anyone made any other representation which is not expressly set forth in this Agreement, to induce the
Developer to accept this franchise and execute this Agreement.
C. Developer represents and acknowledges that he has received a copy of this Agreement,
with all blanks filled in, from Franchisor at least seven (7) calendar days before the date of execution of
this Agreement. Developer further represents that he understands the terms, conditions and obligations of
this Agreement and agrees to be bound.
25. MISCELLANEOUS
A. Except as otherwise expressly provided, nothing in this Agreement is intended, nor shall
be deemed, to confer any rights or remedies upon any person or legal entity who is not a party to this
Agreement.
B. The headings of the several sections and paragraphs are for convenience only and do not
define, limit or construe the contents of sections or paragraphs.
C. The “Developer” as used in this Agreement is applicable to one (1) or more persons, a
corporation or a partnership or limited partnership or limited liability company as the case may be, and the
singular usage includes the plural and the masculine and neuter usages include the other and the feminine.
If two (2) or more persons are at any time Developer under this Agreement, their obligations and liabilities
to Franchisor shall be joint and several. References to “Developer” and “Assignee” which are applicable
to an individual or individuals shall mean the owner or owners of the equity or operating control of
Developer or the Assignee, if Developer or the Assignee is a corporation, partnership, limited partnership
or limited liability company.
This Agreement shall be executed in multiple copies, each of which shall be deemed an original.
[signatures appear on following page]

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement under seal on the
date first written above.
FRANCHISOR: DEVELOPER:
By: IF AN INDIVIDUAL:
Print Name: By:
Title: Print Name:
Date: Date:
Spouse Signature:
Spouse Name: ____________________
Date: ___________________________
IF A PARTNERSHIP, CORPORATION, OR
OTHER ENTITY:
By:
Print Name:
Title:
Date:

ATTACHMENT TO DEVELOPMENT AGREEMENT
GUARANTY AND ASSUMPTION OF OBLIGATIONS
THIS GUARANTY AND ASSUMPTION OF OBLIGATIONS is given this day of

, 20 , by ______________________________________, (each a “Guarantor”).
In consideration of, and as an inducement to, the execution of that certain Area Development
Agreement (the “Area Development Agreement”) by and between Stretch Lab Franchise, LLC (the
“Franchisor”), and ___________________ (“Developer”), each of the undersigned (each, a “Guarantor”)
hereby personally and unconditionally (a) guarantees to Franchisor, and its successor and assigns, for the
term of the Area Development Agreement and as provided in the Area Development Agreement, that
Developer shall punctually pay and perform each and every undertaking, agreement and covenant set forth
in the Area Development Agreement; and (b) agrees to be personally bound by, and personally liable for
the breach of, each and every obligation of Developer under the the Area Development Agreement, both
monetary obligations and non-monetary in nature, including without limitation, those obligations related
to: confidentiality and non-disclosure; indemnification; the Proprietary Marks; the in-term and post-term
covenants against competition, as well as all other restrictive covenants; and the governing law, venue,
attorneys’ fees and other dispute resolution provisions set forth in the Area Development Agreement (that
shall also apply to this Guaranty and Assumption of Obligations).
Each Guarantor hereby waives: (1) acceptance and notice of acceptance by Franchisor of the
foregoing undertakings; (2) notice of demand for payment of any indebtedness or nonperformance of any
obligations guaranteed; (3) protest and notice of default to any party with respect to the indebtedness or
nonperformance of any obligations guaranteed; (4) any right Guarantor may have to require that an action
be brought against Developer or any other person as a condition of liability; and (5) the defense of the
statute of limitations in any action hereunder or for the collection of any indebtedness or the performance
of any obligation hereby guaranteed.
Each Guarantor hereby consents and agrees that: (1) such Guarantor’s undertaking shall be direct,
immediate and independent of the liability of, and shall be joint and several with, Developer and any other
Guarantors; (2) Guarantor shall render any payment or performance required under the Area Development
Agreement upon demand if Developer fails or refuses punctually to do so; (3) Guarantor’s liability shall
not be contingent or conditioned upon pursuit by Franchisor of any remedies against Developer or any other
person; (4) Guarantor’s liability shall not be diminished, relieved or otherwise affected by any extension
of time, credit or other indulgence which Franchisor may grant to Developer or to any other person,
including the acceptance of any partial payment or performance, or the compromise or release of any claims,
none of which shall in any way modify or amend this guaranty, which shall be continuing and irrevocable
during the term of the Area Development Agreement; (5) this undertaking will continue unchanged by the
occurrence of any bankruptcy with respect to Developer or any assignee or successor of Developer or by
any abandonment of the Area Development Agreement by a trustee of Developer; (6) neither the
Guarantor’s obligations to make payment or render performance in accordance with the terms of this
undertaking nor any remedy for enforcement shall be impaired, modified, changed, released or limited in
any manner whatsoever by any impairment, modification, change, release or limitation of the liability of
Developer or its estate in bankruptcy or of any remedy for enforcement, resulting from the operation of any
present or future provision of the U.S. Bankruptcy Act or other statute, or from the decision of any court or
agency; (7) Franchisor may proceed against Guarantor and Developer jointly and severally, or Franchisor
may, at its option, proceed against Guarantor, without having commenced any action, or having obtained
any judgment against Developer; and (8) Guarantor shall pay all reasonable attorneys’ fees and all costs
and other expenses incurred in any collection or attempt to collect amounts due pursuant to this undertaking

2021 Development Agreement - Exhibits
or any negotiations relative to the obligations hereby guaranteed or in enforcing this undertaking against
Guarantor.
IN WITNESS WHEREOF, the parties hereto have executed and delivered this Guaranty on the date
stated on the first page hereof.
PERSONAL GUARANTORS
___________________________
[Insert Name of Guarantor] [Insert Name of Spouse]
___________________________
___________________________
___________________________

EXHIBIT A TO THE AREA DEVELOPMENT AGREEMENT
DEVELOPMENT AREA
The development rights and obligations of Developer, ____________________, to timely develop

and open STRETCH LAB Studios shall be within the following described area:
____________________________________________________________
____________________________________________________________
____________________________________________________________
DEVELOPER FRANCHISOR
___________________________________ STRETCH LAB FRANCHISE, LLC
By: ________________________________ By: __________________________________
Name:______________________________ Name:______________________________
Title:_______________________________ Title:_______________________________

EXHIBIT B TO AREA DEVELOPMENT AGREEMENT
DEVELOPMENT SCHEDULE
1. Development Schedule
Developer, , agrees to timely open STRETCH LAB Studios in

compliance with the following development schedule (the “Development Schedule”). Developer further
agrees that failure to timely open the Studios in compliance with the Development Schedule shall cause the
rights of exclusivity granted to Developer regarding the geographic area defined in Exhibit A to be forfeited.
The Development Schedule is as follows:
Expiration of Development Number of New Unit Franchises that Number of Unit Franchises
Period Must be Opened and Commence that Must be Open and
Operations Within Development Operating by the Expiration of
Period the Development Period
2. Forfeiture of Rights of Exclusivity
Developer’s failure to comply with the Development Schedule in any manner shall be grounds for
Franchisor to (a) terminate the Development Agreement to which this Development Schedule is attached
as an Exhibit, or (b) in lieu of such termination, terminate any exclusive or other territorial rights that
Developer may have within the Development Area or otherwise under the Development Agreement.
APPROVED:
By: ________________________________ By: __________________________________
Name:______________________________ Name:______________________________
Title:_______________________________ Title:_______________________________

EXHIBIT C TO AREA DEVELOPMENT AGREEMENT
FRANCHISE AGREEMENT

EXHIBIT D TO AREA DEVELOPMENT AGREEMENT
STATEMENT OF OWNERSHIP INTERESTS AND PRINCIPALS
A. The following is a list of shareholders, partners, members or other investors in Developer, including
all investors who own or hold a direct or indirect interest in Developer, and a description of the
nature of their interest:
Name Percentage of Ownership/Nature of Interest
B. The following is a list of all of Principals described in and designated pursuant to this Area
Development Agreement, each of whom shall execute the Confidentiality Agreement and Ancillary
Covenants Not to Compete substantially in the form set forth in Exhibit E of this Area Development
Agreement:
By: ________________________________ By: __________________________________
Name:______________________________ Name:______________________________
Title:_______________________________ Title:_______________________________

EXHIBIT E TO AREA DEVELOPMENT AGREEMENT
CONFIDENTIALITY AGREEMENT AND

ANCILLARY COVENANTS NOT TO COMPETE
This Agreement is made and entered into this day of ___________, 20__, between STRETCH
LAB FRANCHISE, LLC, a Delaware limited liability company
(“Franchisor”), (“Developer”), and
(“Covenantor”).
RECITALS
WHEREAS, Franchisor has obtained the right to develop a unique system (the “System”) for the
development and operation of STRETCH LAB Studios under the name and marks STRETCH LAB
(“Studios”); and
WHEREAS, the System includes, but is not limited to, certain trade names, service marks,
trademarks, logos, emblems and indicia of origin, including, but not limited to, the marks STRETCH LAB
and other trade names, service marks, trademarks, logos, insignia, slogans, emblems, designs and
commercial symbols as Franchisor may develop in the future to identify for the public the source of services
and products marketed under the marks and under the System and representing the System’s high standards
of quality, appearance, service and all information relating to the System and to the development and
operation of the Studio, including, without limitation, the operating manual, Franchisor’s training program,
members and supplier lists, or other information or know-how distinctive to a STRETCH LAB Studio; all
of which Franchisor may change, improve and further develop and which Franchisor uses in connection
with the operation of the System (collectively, the “Confidential Information”); and
WHEREAS, the Proprietary Marks and Confidential Information provide economic advantages to
Franchisor and are not generally known to, and are not readily ascertainable by proper means by,
Franchisor’s competitors who could obtain economic value from knowledge and use of the Confidential
Information; and
WHEREAS, Franchisor has taken and intends to take all reasonable steps to maintain the
confidentiality and secrecy of the Confidential Information; and
WHEREAS, Franchisor has granted Developer the limited right to develop a STRETCH LAB
Studio using the System, the Proprietary Marks and the Confidential Information, pursuant to an Area
Development Agreement entered into on _____________________________, 20 (“Area Development
Agreement”), by and between Franchisor and Developer; and
WHEREAS, Franchisor and Developer have agreed in the Area Development Agreement on the
importance to Franchisor and to Developer and other licensed users of the System of restricting the use,
access and dissemination of the Confidential Information; and
WHEREAS, it is necessary for certain employees, agents, independent contractors, officers,

directors and equity interest holders of Developer, or any entity having an interest in Developer
(“Covenantor”) to have access to and to use some of all of the Confidential Information in the management
and operation of Developer’s STRETCH LAB Studio using the System; and
WHEREAS, Developer has agreed to obtain from those covenantors written agreements protecting
the Confidential Information and the System against unfair competition; and

WHEREAS, Covenantor wishes to remain, or wishes to become associated with or employed by
Developer; and
WHEREAS, Covenantor wishes and needs to receive and use the Confidential Information in the
course of his employment or association in order to effectively perform the services for Developer; and
WHEREAS, Covenantor acknowledges that receipt of and the right to use the Confidential
Information constitutes independent valuable consideration for the representations, promises and covenants
made by Covenantor.
NOW, THEREFORE, in consideration of the mutual covenant and obligations contained in this
Agreement, the parties agree as follows:
Confidentiality Agreement
1. Franchisor and/or Developer shall disclose to Covenantor some or all of the Confidential
Information relating to the System. All information and materials, including, without limitation, manuals,
drawings, specifications, techniques and compilations of data which Franchisor provides to Developer
and/or Covenantor are deemed Confidential Information for the purposes of this Agreement.
2. Covenantor shall receive the Confidential Information in confidence and must, at all times,
maintain them in confidence, and use them only in the course of his employment or association with a
Developer and then only in connection with the development and/or operation by Developer of a STRETCH
LAB Studio for so long as Developer is licensed by Franchisor to use the System.
3. Covenantor shall not at any time make copies of any documents or compilations containing
some or all of the Confidential Information without Franchisor’s express written permission.
4. Covenantor shall not at any time disclose or permit the disclosure of the Confidential
Information except to other employees of Developer and only to the limited extent necessary to train or
assist other employees of Developer in the development or operation of a STRETCH LAB Studio.
5. Covenantor must surrender any material containing some or all of the Confidential
Information to Developer or Franchisor, upon request, or upon termination of employment by Developer,
or upon conclusion of the use for which the information or material may have been furnished to Covenantor.
6. Covenantor shall not at any time, directly or indirectly, do any act that would or would
likely be injurious or prejudicial to the goodwill associated with the Confidential Information and the
System.
7. Franchisor loans all manuals to Developer for limited purposes only and they remain the
property of Franchisor and may not be reproduced, in whole or in part, without Franchisor’s written consent.
Covenants Not to Compete
1. In order to protect the goodwill and unique qualities of the System and the confidentiality
and value of the Confidential Information during the term of this Agreement, and in consideration for the
disclosure to Covenantor of the Confidential Information, Covenantor further agrees and covenants as
follows:

a. Not to divert, or attempt to divert, directly or indirectly, any business, business
opportunity, or customer of the Studios to any competitor;
b. Not to employ, or seek to employ, any person who is at the time or was within the
preceding one hundred eighty (180) days employed by Franchisor, its affiliate or any Developer of
Franchisor, or otherwise directly or indirectly induce such person to leave that person’s employment except
as may occur in connection with Developer’s employment of that person if permitted under the Area
Development Agreement; and
c. Except with respect to Studios operated under a valid and existing Franchise
Agreement between Developer (or Developer’s affiliates) and Franchisor, own, maintain, operate, engage
in, or have any financial or beneficial interest in (including any interest in corporations, partnerships, trusts,
limited liability companies, unincorporated associations or joint ventures), advise, assist or make loans to,
any Competing Business (as defined below) or a business that is of a character and concept similar to a
STRETCH LAB Studio. For purposes of this Agreement, a “Competing Business” is defined as any
business that (1) derives at least ten percent (10%) of its revenue from sales generated from the provision
of any stretching services or instruction or other Approved Services and Approved Products that are offered
at a STRETCH LAB Studio, or (2) grants franchises or licenses to others to operate the type of business
described in subpart (1) of this Section.
2. In further consideration for the disclosure to Covenantor of the Confidential Information

and to protect the uniqueness of the System, Covenantor agrees and covenants that for two (2) years
following the earlier of the expiration, termination or transfer of all Developer’s interest in the Area
Development Agreement or the termination of his association with or employment by Developer,
Covenantor will not without the prior written consent of Franchisor:
a. Divert or attempt to divert, directly or indirectly, any business, business

opportunity or customer of the Studios to any competitor;
b. Employ, or seek to employ, any person who is at the time or was within the
preceding one hundred eighty (180) days employed by Franchisor, its affiliate or any franchisee of
franchisor, or otherwise directly or indirectly induce such persons to leave that person’s employment; and
c. Except with respect to Studios operated under Franchise Agreements between

Developer and its affiliates, and Franchisor or its affiliate or any of its subsidiaries, own, maintain, operate,
engage in, or have any financial or beneficial interest in (including any interest in corporations, partnerships,
trusts, limited liability companies, unincorporated associations or joint ventures), advise, assist or make
loans to, any Competing Business or a business that is of a character and concept similar to a STRETCH
LAB Studio (i) within the Development Area granted to Developer; or (ii) within a forty (40) mile radius
of the perimeter of the Development Area being granted to Developer or any other designated territory or
development area licensed by Franchisor to a STRETCH LAB Studio as of the date of expiration,
termination or transfer of all Developer’s interest in the Area Development Agreement or the termination
of Covenantor’s association with or employment by Developer.
Miscellaneous
1. Developer shall make all commercially reasonable efforts to ensure that Covenantor acts
as required by this Agreement.
2. Covenantor agrees that in the event of a breach of this Agreement, Franchisor would be
irreparably injured and be without an adequate remedy at law. Therefore, in the event of a breach, or

threatened or attempted breach of any of the provisions, Franchisor is entitled to enforce the provisions of
this Agreement and is entitled, in addition to any other remedies available to it at law or in equity, including
the right to terminate the Area Development Agreement, to a temporary and/or permanent injunction and a
decree for the specific performance of the terms of this Agreement, without the necessity of showing actual
or threatened harm and without being required to furnish a bond or other security.
3. Covenantor agrees to pay all expenses (including court costs and reasonable attorneys’
fees) incurred by Franchisor and Developer in enforcing this Agreement.
4. Any failure by Franchisor to object to or take action with respect to any breach of this
Agreement by Covenantor shall not operate or be construed as a waiver of or consent to that breach or any
subsequent breach by Covenantor.
5. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND

ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF [INSERT STATE WHERE
THE STUDIO IS LOCATED] AND COVENANTOR HEREBY IRREVOCABLY SUBMITS
HIMSELF TO THE JURISDICTION OF THE STATE COURT CLOSEST TO FRANCHISOR’S THEN-
CURRENT HEADQUARTERS OR, IF APPROPRIATE, THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT FOR [INSERT STATE WHERE THE STUDIO IS LOCATED].
COVENANTOR HEREBY WAIVES ALL QUESTIONS OF PERSONAL JURISDICTION OR VENUE
FOR THE PURPOSE OF CARRYING OUT THIS PROVISION. COVENANTOR HEREBY AGREES
THAT SERVICE OF PROCESS MAY BE MADE UPON HIM IN ANY PROCEEDING RELATING TO
OR ARISING UNDER THIS AGREEMENT OR THE RELATIONSHIP CREATED BY THIS
AGREEMENT BY ANY MEANS ALLOWED BY [INSERT STATE WHERE THE STUDIO IS
LOCATED]OR FEDERAL LAW. COVENANTOR FURTHER AGREES THAT VENUE FOR ANY
PROCEEDING RELATING TO OR ARISING OUT OF THIS AGREEMENT SHALL BE ONE OF THE
COURTS DESCRIBED ABOVE IN THIS SECTION; PROVIDED, HOWEVER, WITH RESPECT TO
ANY ACTION WHICH INCLUDES INJUNCTIVE RELIEF OR OTHER EXTRAORDINARY RELIEF,
FRANCHISOR MAY BRING SUCH ACTION IN ANY COURT IN ANY STATE WHICH HAS
JURISDICTION.
6. The parties acknowledge and agree that each of the covenants contained in this Agreement
are reasonable limitations as to time, geographical area, and scope of activity to be restrained and do not
impose a greater restraint than is necessary to protect the goodwill or other business interests of Franchisor.
The parties agree that each of the foregoing covenants shall be construed as independent of any other
covenant or provision of this Agreement. If all or any portion of a covenant in this Agreement is held
unreasonable or unenforceable by a court or agency having valid jurisdiction in any unappealed final
decision to which Franchisor is a part, Covenantor expressly agrees to be bound by any lesser covenant
subsumed within the terms of the covenant that imposes the maximum duty permitted by law as if the
resulting covenant were separately stated in and made a part of this Agreement.
7. This Agreement contains the entire agreement of the parties regarding the subject matter
of this Agreement. This Agreement may be modified only by a duly authorized writing executed by all
parties.
8. All notices and demands required to be given must be in writing and sent by personal
delivery, expedited delivery service, certified or registered mail, return receipt requested, first-class postage
prepaid, facsimile or electronic mail, (provided that the sender confirms the facsimile or electronic mail, by
sending an original confirmation copy by certified or registered mail or expedited delivery service within
three (3) business days after transmission), to the respective parties at the following addresses unless and
until a different address has been designated by written notice to the other parties.

If directed to Franchisor, the notice shall be addressed to

Irvine, California 92614
If directed to Developer, the notice shall be addressed to:
Attention:
If directed to Covenantor, the notice shall be addressed to:
Attention:
Any notices sent by personal delivery shall be deemed given upon receipt. Any notices given by
facsimile or electronic mail shall be deemed given upon transmission, provided confirmation is made as
provided above. Any notice sent by expedited delivery service or registered or certified mail shall be
deemed given three (3) business days after the time of mailing. Any change in the foregoing addresses
shall be effected by giving fifteen (15) days written notice of such change to the other parties. Business
day for the purpose of this Agreement excludes Saturday, Sunday and the following national holidays: New
Year’s Day, Martin Luther King Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day,
Columbus Day, Veterans Day, Thanksgiving and Christmas.
9. The rights and remedies of Franchisor under this Agreement are fully assignable and
transferable and inure to the benefit of its respective parent, successor and assigns. The respective
obligations of Developer and Covenantor hereunder may not be assigned by Developer or Covenantor
without the prior written consent of Franchisor.
[signatures appear on following page]

IN WITNESS WHEREOF, the undersigned have entered into this Agreement as witnessed by their
signatures below.
FRANCHISOR: DEVELOPER:
STRETCH LAB FRANCHISE, LLC (If Developer is a corporation)
______________________________
Name of Corporation
By: By:
Title: Title:
(If Developer is an individual owner,

COVENANTOR: Developer must sign below; if a partnership,
all partners must sign
____________________________________ below)
Printed Name: ______________________________

Developer
______________________________
Developer
______________________________
Developer
______________________________
Developer
(If Developer is a Limited Liability Company)
______________________________
Name of Limited Liability Company
By: __________________________
Title: _________________________

Exhibit J
STATE EFFECTIVE DATES
State Effective Dates
The following states have franchise laws that require that the Franchise Disclosure
Document be registered or filed with the state, or be exempt from registration: California,
Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode
Island, South Dakota, Virginia, Washington, and Wisconsin.
This document is effective and may be used in the following states, where the document
is filed, registered or exempt from registration, as of the Effective Date stated below:
STATE EFFECTIVE DATE
CALIFORNIA Pending Registration
FLORIDA January 9, 2021

HAWAII Pending Registration
ILLINOIS Pending Registration
INDIANA Pending Registration
KENTUCKY Effective
MARYLAND Pending Registration

MICHIGAN January 16, 2021
MINNESOTA Pending Registration

NEBRASKA Effective
NEW YORK Pending Registration

NORTH DAKOTA Pending Registration
RHODE ISLAND Pending Registration

SOUTH DAKOTA July 7, 2020
TEXAS Effective
UTAH Effective
VIRGINIA Pending Registration
WASHINGTON Pending Registration
WISCONSIN Pending Registration
Other states may require registration, filing, or exemption of a franchise under other
laws, such as those that regulate the offer and sale of business opportunities or seller-assisted
marketing plans.
Exhibit K
RECEIPTS
ITEM 23
RECEIPT
This Disclosure Document summarizes provisions of the franchise agreement and other information in plain
language. Read this Disclosure Document and all agreements carefully.
If Stretch Lab Franchise, LLC offers you a franchise, it must provide this Disclosure Document to you 14 calendar
days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection
with the proposed franchise sale.
New York, Oklahoma and Rhode Island require that we give you this Disclosure Document at the earlier of the
first personal meeting or 10 business days before the execution of the franchise agreement, or other agreement, or
the payment of any consideration that relates to the franchise relationship.
Michigan, Oregon and Wisconsin require that we give you this Disclosure Document at least 10 business days
before the execution of any binding franchise agreement, or other agreement, or the payment of any consideration,
whichever comes first.
If Stretch Lab Franchise, LLC does not deliver this Disclosure Document on time or if it contains a false or
misleading statement, or a material omission, a violation of federal and state law may have occurred and should
be reported to The Federal Trade Commission, Washington D.C. 20580 and the appropriate State Agency
identified on Exhibit B.
The franchisor is Stretch Lab Franchise, LLC located at 17877 Von Karman Avenue, Suite 100, Irvine, CA 92614.
The name, principal business address, and telephone number of each Franchise Seller offering the Franchise are:
Louis DeFrancisco, c/o Stretch Lab Franchising, LLC, 17877 Von Karman Avenue, Suite 100, Irvine, CA 92614,
(949) 326-9765; Lance Freeman and Emily Brown, Xponential Fitness, LLC, 17877 Von Karman Avenue, Suite
100, Irvine, California 92614, (949) 370-7093; ________________________________________________.
Issuance Date: April 10, 2021. Stretch Lab Franchise, LLC authorizes the agents listed in Exhibit B to receive
service of process for it.
I have received a Franchise Disclosure Document dated April 10, 2021. This Disclosure Document included the
following Exhibits:

E. TABLE OF CONTENTS OF THE OPERATIONS MANUAL
F. GENERAL RELEASE OF ALL CLAIMS
G. STATE-SPECIFIC ADDENDA
I. MULTI-UNIT DEVELOPMENT AGREEMENT
K. RECEIPTS
__________________________ __________________________
(Print Name) (Signature)
__________________________
Date
Keep this copy for your records.

ITEM 23
RECEIPT
This Disclosure Document summarizes provisions of the franchise agreement and other information in plain
language. Read this Disclosure Document and all agreements carefully.
If Stretch Lab Franchise, LLC offers you a franchise, it must provide this Disclosure Document to you 14 calendar
days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection
with the proposed franchise sale.
New York, Oklahoma and Rhode Island require that we give you this Disclosure Document at the earlier of the
first personal meeting or 10 business days before the execution of the franchise agreement, or other agreement, or
the payment of any consideration that relates to the franchise relationship.
Michigan, Oregon and Wisconsin require that we give you this Disclosure Document at least 10 business days
before the execution of any binding franchise agreement, or other agreement, or the payment of any consideration,
whichever comes first.
If Stretch Lab Franchise, LLC does not deliver this Disclosure Document on time or if it contains a false or
misleading statement, or a material omission, a violation of federal and state law may have occurred and should
be reported to The Federal Trade Commission, Washington D.C. 20580 and the appropriate State Agency
identified on Exhibit B.
The franchisor is Stretch Lab Franchise, LLC located at 17877 Von Karman Avenue, Suite 100, Irvine, CA 92614.
The name, principal business address, and telephone number of each Franchise Seller offering the Franchise are:
Louis DeFrancisco, c/o Stretch Lab Franchising, LLC, 17877 Von Karman Avenue, Suite 100, Irvine, CA 92614,
(949) 326-9765; Lance Freeman and Emily Brown, Xponential Fitness, LLC, 17877 Von Karman Avenue, Suite
100, Irvine, California 92614, (949) 370-7093; ________________________________________________.
Issuance Date: April 10, 2021. Stretch Lab Franchise, LLC authorizes the agents listed in Exhibit B to receive
service of process for it.
I have received a Franchise Disclosure Document dated April 10, 2021. This Disclosure Document included the
following Exhibits:

E. TABLE OF CONTENTS OF THE OPERATIONS MANUAL
F. GENERAL RELEASE OF ALL CLAIMS
G. STATE-SPECIFIC ADDENDA
I. MULTI-UNIT DEVELOPMENT AGREEMENT
K. RECEIPTS
__________________________ __________________________
(Print Name) (Signature)
__________________________
Date
Please sign this copy of the receipt, date your signature, and return this form to us as described in Item 23.

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StretchLab - 2021-04-10 - FDD - Xponential Fitness

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StretchLab - 2021-04-10 - FDD - Xponential Fitness

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What information is provided about the estimated initial investment?

What information is provided about the estimated initial investment?

What documents must be received at least 14 days before signing an agreement or making payments?

What documents must be received at least 14 days before signing an agreement or making payments?

FRANCHISE DISCLOSURE DOCUMENT

Stretch Lab Franchise, LLC

QUESTION WHERE TO FIND INFORMATION

Some States Require Registration

Certain states require that the following risk(s) be highlighted:

A. FRANCHISE AGREEMENT AND EXHIBITS

Parent and No Predecessor

©2021 Stretch Lab Franchise, LLC

©2021 Stretch Lab Franchise, LLC

Our agents for service of process are disclosed in Exhibit B.

The Franchised Business We Offer

©2021 Stretch Lab Franchise, LLC

Market and Competition

©2021 Stretch Lab Franchise, LLC

Louis (Lou) DeFrancisco: President

Martin Balcaitis: Chief Marketing Officer

Jason Losco: Vice President of Franchise Development

Brad Walker: Chief Stretch Advisor

©2021 Stretch Lab Franchise, LLC

Ashley Larson: Director of Development

Verdine Baker: National Sales Director

Concluded Action (Franchisor-Initiated Action)

Except as provided above, no litigation is required to be disclosed in this Item.

No bankruptcy information is required to be disclosed in this Item.

Initial Franchise Fee

Pre-Sale and Soft Opening Inventory Package

Pre-Opening Instructor Training

Technology Fee (1 Month Prior to Opening)

©2021 Stretch Lab Franchise, LLC

Type of Fee Amount Due Date Remarks

preceding business different interval (for example, monthly).

We require you to make a contribution to that

We reserve the right to modify (a) the FTP

training we require you to complete to cure a

We will not charge any training fee in

In addition to our then-current training fee, you

This amount is subject to increase upon written

©2021 Stretch Lab Franchise, LLC

We only charge an administration fee

There are a number of additional conditions

©2021 Stretch Lab Franchise, LLC

in response to reports required by your Franchise

Regional As the Cooperative As the Cooperative We may establish regional cooperatives

We reserve the right to assess a relocation fee

If we approve your relocation request, we

Notes to Item 6 Chart:

©2021 Stretch Lab Franchise, LLC

YOUR ESTIMATED INITIAL INVESTMENT

TYPE OF EXPENDITURE1 LOW HIGH METHOD OF WHEN DUE TO WHOM

Real Estate/Lease4 $14,500 $40,500 As arranged As incurred Landlord, Approved

©2021 Stretch Lab Franchise, LLC

Notes to Table A in Item 7:

©2021 Stretch Lab Franchise, LLC

©2021 Stretch Lab Franchise, LLC

©2021 Stretch Lab Franchise, LLC

TYPE OF AMOUNT METHOD WHEN DUE TO WHOM

Initial Investment to Open $97,800 to $237,600 See Chart A of this Item 7.

Notes to Table B in Item 7:

©2021 Stretch Lab Franchise, LLC