What is the deadline for paying the Grand Opening Fee for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ou must pay to us an initial contribution of $500 when your Franchise Business opens. You must also pay us a continuing monthly Advertising Contribution to the Media Fund in an amount equal to 2% of monthly Gross Revenues. We have the sole right to enforce your obligations and all other Franchisees that ma
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, the Grand Opening Fee of $14,950 must be paid within 60 days of signing the Franchise Agreement. This fee is non-refundable and is in exchange for Stretch Zone's assistance in conducting grand opening advertising for the Franchise Business, including help with the pre-grand opening plan and the three-day grand opening plan, as detailed in the Operations Manual.
This means that prospective Stretch Zone franchisees need to be prepared to pay this fee relatively soon after committing to the franchise. It is important to factor this cost into the initial investment and ensure that funds are available to meet this obligation within the specified timeframe. The fee is non-refundable, so franchisees should be confident in their decision before signing the Franchise Agreement.
Grand opening support is a common service offered by franchisors to help new franchisees launch their businesses successfully. The Stretch Zone FDD specifies that the Grand Opening Fee is specifically tied to this assistance, which includes pre-opening and grand opening advertising support. Franchisees should carefully review the Operations Manual to understand the full scope of the grand opening assistance provided by Stretch Zone in exchange for this fee.
Missing the payment deadline could potentially lead to a breach of the Franchise Agreement, so franchisees must prioritize this payment. It is advisable to set reminders and ensure that the payment process is initiated well in advance of the 60-day deadline to avoid any complications.