What was the amount of cash paid for interest by Stretch Zone in 2023?

According to Stretch Zone's 2025 Franchise Disclosure Document, the cash paid for interest in 2023 was $3,428,028. This figure is part of the supplementary disclosure of cash flow information provided in the financial statements.

This indicates the extent to which Stretch Zone relies on debt financing and the associated costs. For a prospective franchisee, this highlights the importance of understanding the company's financial structure and how interest expenses can impact profitability. High interest payments can reduce the net income available to the franchisor, which could affect the support and services they provide to franchisees.

It's also worth noting that in 2022, Stretch Zone did not have any cash paid for interest, as the listed amount is $ -. This significant increase in 2023 is likely due to the Senior Credit Facility Agreement entered into on March 31, 2023, as detailed in Note G of the financial statements, which includes a $40,000,000 senior secured term loan. This agreement stipulates monthly interest payments, contributing to the substantial interest expense for the year.