According to the 2025 Stretch Zone Franchise Disclosure Document, the Stretch Zone Franchising, LLC Profit & Loss statement is prepared on an accrual basis. This means that revenues and expenses are recognized when they are earned or incurred, regardless of when cash changes hands.

For a prospective franchisee, this is important because the accrual method provides a more accurate picture of the financial performance of Stretch Zone over a specific period. It matches revenues with the expenses incurred to generate those revenues, offering a clearer view of profitability.

Most mature businesses and larger franchisors use the accrual method because it adheres to Generally Accepted Accounting Principles (GAAP) and provides a more comprehensive financial overview compared to the cash method, which only recognizes transactions when cash is received or paid.