Stride Franchise, LLC
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Stride Franchise, LLC is a Delaware limited liability company formed on December 18, 2018. Their principal business is 17877 Von Karman Ave., Suite 100, Irvine, CA. Xponential Fitness, LLC is their direct parent company. Xponential is a Delaware limited liability company with a principal business address at 251 Little Falls Drive, Wilmington, Delaware 19808.
We offer and award franchises for the right to independently own and operate a Studio utilizing the Marks and “System” described below (each, a “Franchised Business”) pursuant to our then-current form pf franchise agreement (the “Franchise Agreement”). Our current form of Franchise Agreement is attached to this Disclosure Docurnent as Exhibit A. We expect that a Studio will typically be located in a retail shopping center, and this franchise offering assumes that tho size of a typical Studio; will be at least around 2,000 square feet in size. We may, however, consider alternative sites, on a case-by-case basis. Under frie Franchise Agreement, we will also grant you the right to Operate yOurFranchised BusiaeSs withiiia designated geographical area wherein you will also be permitted and required to actively promote the Franchised,Business and solicit new clientele the “Designated Territory”). If you own an existing fitness facility and meet our other qualifications, you may convert your existing business to a StudiO; A converted Studio will likely encoimter lower investment requirements than those of a start-up Studio, but we will only approve a conversion if it is completed in accordance with our then-current System Standards (as defined below). The Studios are established and operated under a comprehensive design that includes spacious interior, treadmills, specifications, and procedures for operations; quality customer seryice; 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. Approved Services and Approved Products Each Studio Will offer and provide indoor running mid walking classes; through live instructional group and; indiyidub classes designed to target and accommodate: different skill levels, as we designate or otherwise authorize from time to time (collectively, the “Classes”); and (ii) any other services that We develop, designate and/or otherwise, authorize (Collectively, the “Approved Services”). Typically all classes and other Approved Services will be paid for and scheduled online via the Internet. You will also be authorized,and required to offer and sell certain apparel, merchandise, beverages and other retail items and products;that we designate or otherwise approve (collectively, the “Approved Products”). Muia-Unit Offering: We also offer qualified individuals and entities the right to open and operate three (3) or more Franchised Businesses within a designated geographical area (the “Developrneht Area”) under our current form of development agreement that is attached to this Disclosure,Document as Exhibit I (the “Development Agreement”), which will also outline a schedule of 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 any other initial franchise fee at the time you execute your franchise agreements for each Franchised Business we permit you to open under your Development Agreement.
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Franchimp Summary Rating
5/10
Earning Transparency
7/10
Investment Accessibility
3/10
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Upfront Franchise Fees
Minimum: $141,798 Maximum: $159,792
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $372,412 Maximum: $533,512
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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