factual

Does Stretch Zone currently require franchisees to join any purchasing or distribution cooperatives?

Stretch_Zone Franchise · 2025 FDD

Answer from 2025 FDD Document

PURCHASING OR DISTRIBUTION COOPERATIVES

There are currently no purchasing or distribution cooperatives that you must join or in which you may participate.

Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)

What This Means (2025 FDD)

According to the 2025 Stretch Zone Franchise Disclosure Document, franchisees are not currently required to join any purchasing or distribution cooperatives. However, Stretch Zone does negotiate purchase arrangements with suppliers for the benefit of franchisees. These negotiations cover fees and costs for marketing and advertising materials, furniture and fixtures, leasehold improvements, and signage.

While Stretch Zone does not mandate participation in cooperatives, they do derive revenue from franchisee purchases and leases. In 2024, $2,319,603 of their $12,830,150 total revenue came from these required purchases or leases, representing 18% of their total revenue. The estimated proportion of required purchases and leases ranges from 15% to 30% when establishing the franchise business and 70% to 85% when operating the franchise business.

Stretch Zone also designates specific suppliers from whom franchisees must purchase certain goods or services. These designated suppliers include Store Décor for interior signage and graphics, Apple Inc. and Microsoft Corporation for the computer system, Club Ready, Inc. for POS software, Jocoba Marketing for uniforms, merchandise, and miscellaneous supplies, and R.V. Johnson Insurance as the required insurance agent. Franchisees are also required to sublicense software such as QuickBooks Online, Career Plug, Microsoft Office 365, KnetK, Factor 4, Perkville, Canva, Stretch Net, and Predictive Index from Stretch Zone.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.