The StretchMed founder shares tips for building a thriving franchise system – and stretching the limits of success.
TAKEAWAYS:
StretchMed founder Brain Cook grew his brand from one location to 30 in five years, with 27 more locations in development.
The brand’s data-driven success relies heavily on tracking success metrics and being accountable for those numbers.
Cook’s emphasis on developing people and prioritizing accountability helped establish a thriving franchise system with passionate franchisees and satisfied clientele.
When Brian Cook founded StretchMed, a wellness brand that offers one-on-one assisted stretching for those suffering from chronic pain and mobility issues, he wanted to keep things local.
“The very first StretchMed was a mile and a half from my house, so that was easy. That was our proof of concept that hit a home run. We had signed up a few hundred people for the presale. There was a major competitor a mile away, and it didn’t matter,” Cook recalls.
Rooted in the idea that guided stretching can help alleviate some of the chronic pain experienced by over 50 million people in the U.S., according to 2021 data from the Centers for Disease Control and Prevention, StretchMed was an instant hit in Cook’s Boston neighborhood, growing to five locations in its first year of business in 2019.
Now in its fifth year, StretchMed has expanded to include 30 studios across the U.S., with 27 more in development and several expected to open in the coming months. Despite the brand’s rapid growth and success, though, building a thriving franchise system from the ground up didn’t happen overnight for Cook. Instead, it required strategic development and a business model that put people – and their success – front and center.
Stretching the limit in challenging time
At StretchMed, growth happened fast for the fledgling brand. After opening its doors to the Greater Boston area in 2019, the business expanded to five locations in its first year, with staff from another fitness brand owned by Cook purchasing a studio and three more being purchased by one of StretchMed’s first customers.
“(Our growth) was just super organic. And then boom, Covid hit. So, it was that quick,” Cook recalls.
Despite the setbacks imposed by the global public health emergency that left businesses shuttered and many residents afraid to leave their homes for health reasons, StretchMed managed to expand to 22 locations in the year that followed, largely through a combination of smart business practices and strategic marketing efforts – some more successful than others.
“We pulled portals – you know, franchise, direct, biz, buy, sell. Nothing else materialized. We signed all the brokers. And again, I don't know if it's just me or our brand, but every broker call I've had, it's been with a lead that was just the biggest waste of time,” Cook says.
Taking matters into his own hands, Cook shifted the focus to reaching prospective buyers and increasing brand awareness through target marketing efforts online instead, utilizing a combination of search engine optimization, advertising and social media outreach.
“We lit up Google, Facebook and Instagram recently with a national campaign,” Cook says, expressing optimism about the results of those efforts for future growth and increased brand awareness beyond the Boston area over the next year.
Starting local - and thinking nationally
Despite its national presence today, much of StretchMed’s success has come down to organic growth in the local community where the brand was first established five years ago.
“With StretchMed, you’ll see the majority of our stores are in the Boston, Massachusetts, area. I wouldn’t even think of anything other than (that). Once it’s one, two, three, it might be 10 in your very local market before you even consider national (expansion). Because once you go national, it’s not the model that doesn’t work elsewhere – it’s the mindset,” Cook says.
For new franchisors just starting out, Cook advises limiting new locations to their local area while perfecting their business model to achieve profitability. For many, that can look like developing systems and processes that are tested and proven, including training programs and franchise operations manuals, while supporting franchisees and learning the ins and outs of franchising more generally. It can also include buying and operating several locations on their own before selling them to franchisees.
“Get granular on the office manual, support the hell out of your franchisees. Do some flips, if you have to get the ball rolling, and then grow outward,” Cook says.
Creating a healthier business - and world
When it comes to growing MedStretch, Cook says a business model that prioritizes people and embraces data and accountability is critical. But before anything else, he says, it’s important to establish why you’re in business in the first place – and how your brand is going to touch lives with its products or services.
“First, (get) clear on what's the purpose? Like, what problem do you solve? Articulate your core values, because your core values are going to either repel or attract people. You need to be really transparent. Then articulate the mission,” Cook says.
Next, Cook says franchisors should build a financial model and get clear about their capital, revenue and pricing – a factor that influences the financial model of the business overall. Finding ways to streamline the interview process to quickly identify strong candidates can also be helpful for franchisors looking to build a solid team.
Still, even after taking the right steps to prepare their brand for success, Cook warns it’s possible to falter if metrics, such as the brand’s financial performance numbers or sales data, aren’t properly tracked and accountability isn’t implemented across the franchise system.
“Once you have the mechanics of running a business, and you have it really detailed, then you can clearly see what is working. But if you don't really have the business model super articulated, then it's risky, because you don't really know what's not working,” Cook says.
At StretchMed, that model includes tracking revenue and returns on investment as well as the return on time invested in the business – an invaluable resource that’s often overlooked but can’t be replaced.
“You’ve got to work really hard on unit economics, and get really clear on return on cash and return on time,” Cook says.
Building each other up
For Cook, another critical component of success comes down to the people in the franchise system – and the level of support they’re provided by franchisors.
“If you want to sleep good at night, you better give (your franchisees) crazy support – and quickly,” Cook says.
Offering the right level of support often requires adopting a growth-based mindset with a focus on continuous improvement. At StretchMed, franchisee support includes rigorous training, a certification process for each studio’s stretch therapists, and a brand culture centered around empowerment – including team members building each other up within the business.
“If an owner opens up a StretchMed, (they’re) developing one person – the manager. The manager is developing the assistant manager. The assistant manager is developing the part-timers. There's no reverse delegation,” Cook says.
Still, that focus on empowerment and relationship-building comes with responsibility – particularly where it relates to making sure the focus of franchisees stays centered on business growth and success.
“You’ve got to find a way to hold franchise owners accountable, but not be rude. So, caring and empathy are the way this works, (but) your investment comes first. Our friendship comes second. It's not friendship first. You have to make money, whether you like it or not. We're going to get you to really good profitability,” Cook says.
At StretchMed, that philosophy stretches beyond superficial success – not only for Cook, but also for the brand’s franchisees and their families’ futures.
“When someone hands you their life savings, you better know what the hell you're doing, because you're changing someone's life – for the better, or for the worse,” Cook says.
To learn more about franchise opportunities with StretchMed, visit https://stretchmedstudios.com/own-a-stretchmed.
