factual

What is the depreciation timeframe for furniture and fixtures at a Stretch Zone franchise?

Stretch_Zone Franchise · 2025 FDD

Answer from 2025 FDD Document

Furniture and fixtures are stated at cost, less accumulated depreciation, and are depreciated on a straightline basis over the estimated useful life of the assets ranging from 60 to 84 months. Maintenance and repairs are expensed as incurred.

Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)

What This Means (2025 FDD)

According to Stretch Zone's 2025 Franchise Disclosure Document, the company depreciates furniture and fixtures using the straight-line method over an estimated useful life. This useful life ranges from 60 to 84 months.

For a prospective Stretch Zone franchisee, this means that the cost of furniture and fixtures purchased for the business can be deducted as an expense over a period of 5 to 7 years (60 months / 12 months per year = 5 years; 84 months / 12 months per year = 7 years). The straight-line method means the same amount of depreciation expense will be recognized each year. This can impact the franchisee's profitability and tax obligations during those years.

It is important to note that this depreciation timeframe is an estimate. The actual useful life of the assets may vary. Additionally, any maintenance and repairs to the furniture and fixtures are expensed as incurred, meaning they are deducted in the year they occur rather than depreciated over time. This accounting treatment is standard practice, as it reflects the ongoing costs of maintaining the assets in good working condition.

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.