When is the $59,500 Initial Franchise Fee payable to Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
endment is effective only to the extent that the jurisdictional requirements of the North Dakota Franchise Investment Law as to each provision are met independent of this Addendum. A provision has no force or effect if the jurisdictional requirements
are not met independent of this Addendum. If this Addendum is inconsistent with any terms of the Area Development Agreement, the terms of this Addendum govern.
Each of the undersigned acknowledges having read this Addendum, und
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the initial franchise fee of $59,500 is deferred and not payable until Stretch Zone has fulfilled all of its pre-opening obligations to the franchisee under the Franchise Agreement. This amendment applies to franchisees currently purchasing a franchise.
This deferred payment structure is a notable benefit for new Stretch Zone franchisees. It alleviates the immediate financial burden, allowing them to focus on setting up their studio and preparing for the opening. This arrangement ensures that franchisees only pay the initial fee after Stretch Zone has provided the necessary support and met its pre-opening responsibilities.
Prospective franchisees should carefully review the Franchise Agreement and related addenda to fully understand Stretch Zone's pre-opening obligations. Understanding these obligations will help franchisees ensure that Stretch Zone fulfills its commitments before the initial franchise fee becomes payable. Franchisees should also confirm that the addendum applies to their specific franchise agreement to ensure they qualify for the deferred payment.