Does Stretch Zone charge interest on the monies they advance for insurance coverage?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
As discussed in ITEM 8, we require that you carry certain insurance specified in the Operations Manual.
The method and timing of payments is between you and your insurer.
We require you to use R.V.
Johnson Insurance as your Insurance Agent.
Because the selection of the carrier, size of the Premises, location of the Premises, value of the leasehold improvements, amount of inventory, amount of wages and other related conditions vary considerably, it is difficult to estimate the ultimate cost for any given franchisee.
We base this estimate on the rates in effect in Florida.
The cost of workers' compensation insurance varies from state to state.
Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)
What This Means (2025 FDD)
The 2025 Stretch Zone Franchise Disclosure Document does not state whether Stretch Zone charges interest on advanced insurance coverage payments. The document does specify that franchisees are required to obtain insurance through R.V. Johnson Insurance as their agent, with the types and minimum amounts of coverage detailed in the Operations Manual.
Item 6 includes a table outlining the estimated initial expenses, with insurance costs ranging from $1,750 to $4,000, payable as a lump sum before beginning business to the designated insurance agent. The method and timing of payments is determined between the franchisee and their insurer.
Because the FDD does not specify whether Stretch Zone charges interest on advanced insurance coverage payments, prospective franchisees should seek clarification from the franchisor regarding payment options, potential financing arrangements, and any associated interest charges.