According to the Stretch Zone franchise agreement, where are all fees payable?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 3.2 PAYMENT SCHEDULE
Royalty Fees, Technology Fees, training fees, Advertising Contributions and Fines are automatically billed and paid when are due by processing through our POS system. If we do not specify a due date, these amounts are due upon receipt of our invoice. Any payment or report not actually received by us on or before the due date is overdue. All payments will be processed through our POS system.
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 the 2025 Stretch Zone Franchise Disclosure Document, Royalty Fees, Technology Fees, training fees, Advertising Contributions and Fines are automatically billed and paid when due by processing through Stretch Zone's POS system. If Stretch Zone does not specify a due date, these amounts are due upon receipt of their invoice. Any payment or report not actually received by Stretch Zone on or before the due date is overdue. All payments will be processed through their POS system.
This means that as a Stretch Zone franchisee, you can expect that several of your financial obligations to the franchisor will be handled electronically through a point-of-sale (POS) system. This includes not only the ongoing royalty and technology fees, but also advertising contributions and any fines that may be levied. The POS system integration suggests a streamlined approach to payments, but it's crucial to ensure that the system is functioning correctly and that you understand how the billing and payment processes work to avoid any late fees or disruptions.
It is also important to note that if Stretch Zone does not provide a specific due date for an amount owed, payment is expected upon receipt of an invoice. Franchisees should pay close attention to invoices and ensure timely payment to avoid overdue notices. The franchise agreement emphasizes that payments must be received by the due date, not just sent, so electronic payments should be scheduled with enough lead time to account for processing.