StretchLab, the global leader in assisted stretching within the Xponential Fitness brand, under the leadership of seasoned fitness executive Verdine Baker, has grown the franchise brand to an astounding 500 units in just the past five years. Often, companies that open so many locations quickly cannot maintain healthy unit economics. Still, StretchLab has defied all odds, especially being a niche subcategory within the wellness industry. Numerous StretchLab franchise locations across the country have celebrated over $1 million in revenue in 2023, and membership numbers in 2024 continue to outpace years past. BLACK ENTERPRISE spoke with Baker, president and CEO of StretchLab and former professional soccer player, to understand how he’s been able to drive such tremendous growth and the importance of having African American executives in leadership roles and ownership across the franchise sector.
BLACK ENTERPRISE: How did you decide to go into the fitness franchise industry?
VERDINE BAKER: I’ve built my career from the start in the health and wellness industry. From a business perspective, I have always been intrigued and curious about small businesses and the scalability that can come from them. Franchising offers a good balance between executing small business operations and corporate business and being able to help people and entrepreneurs all at the same time. Having played sports at a professional level, I’ve suffered my fair share of injuries, including six knee surgeries. When it comes to StretchLab, I had an immediate connection with the brand and its mission. Combined with my personal relationship with the service, I knew my wellness and fitness business background would serve me well in taking on leadership with the brand as well.
BE: What was your path to becoming president and CEO of the StretchLab brand?
BAKER: Having been recruited as a result of my business experience in the fitness and wellness category, I was brought on board as national sales director, where I helped build sales and operations processes for the brand when it had just three locations. Being that I worked at the gym and studio level for years, I had hands-on experience with finding ways to build and optimize the business model. When I started with the brand, I was fortunate that my leader at the time empowered me to build my skills, use them, and learn other aspects of franchising — from franchise development to franchisee relations — that ultimately positioned me to grow to Vice President to Sales and later to President, where I’ve now served for the last three years.
BE: How have you grown the brand to 500 units without compromising unit economics?
BAKER: We have prioritized maintaining high-quality support for our franchisees, which has been essential to our brand’s growth to 500 units while preserving strong unit economics. As we expanded, we were deliberate in structuring our corporate team and refining the systems and processes that our franchisees implement daily. By continuously enhancing our foundational practices and seeking innovative methods to boost efficiencies across our network, we’ve successfully fueled our growth without sacrificing performance.
BE: Why do you feel having more African Americans in executive roles at franchise brands is important?
BAKER: I think it’s essential to have diversity in leadership. It’s also important to me that the next generation of people who look like me see a path for themselves to succeed in business. Additionally, having people of color in executive positions is truly representative of our franchise system. When I look at our franchisees, they’re made up of people of all different ethnicities, races, and socioeconomic backgrounds, and have all come together with a common goal to have a successful business. We have a great mix of franchisees that include Black and African American business owners who have done an incredible job scaling their businesses. As far as franchising specifically, the beauty of this model is that franchising can create generational wealth for families, and I think that’s something that the African American/Black community hasn’t historically always seemed like a reality.
BE: How does StretchLab promote and market membership and ownership to people of color?
BAKER: When it comes to our franchise development and public relations efforts, our marketing and PR teams make a concerted effort to ensure our franchisees of color get the recognition they deserve in the media. We’ve been fortunate to be able to share the stories of excellent and successful StretchLab owners like Steve Ojeshina and Lenita Williams, among many others, in major business and franchise publications, showing that StretchLab has a place for entrepreneurs of all walks of life, whether you are Black, Asian, Latinx, and beyond.
We also ensure diversity is included in all our marketing assets and imagery for a true representation of what our members look like. We truly serve everybody in our studios — our members are veterans, student-athletes, retired athletes, grandparents, parents, and working professionals — and yes, many of those are people of color. It’s important that when people are presented with our brand, they know that StretchLab is a place for them.
BE: With your experience at the brand, do you believe StretchLab is a good opportunity for African American owners?
BAKER: Absolutely. In addition to what I’ve already mentioned, StretchLab also creates the experience of being an independent business owner and teaching valuable business skills.
To learn more about franchise opportunities with StretchLab, visit its website at stretchlab.com/franchise
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