Does Stretch Zone derive revenue from Designated Suppliers for required purchases or leases by franchisees?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
We did not derive revenue from Designated Suppliers for required purchases or leases Stretch Zone franchisees.
PURCHASING OR DISTRIBUTION COOPERATIVES
There are currently no purchasing or distribution cooperatives that you must join or in which you may participate.
NEGOTIATION OF PURCHASE ARRANGEMENTS
We do negotiate purchase arrangements with suppliers for your benefit and the benefit of the other franchisees. We have negotiated fee arrangements and costs for all necessary marketing and advertising materials, furniture and fixtures, leasehold improvements and signage.
Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, Stretch Zone does not derive revenue from Designated Suppliers for required purchases or leases by franchisees. However, Stretch Zone does derive revenue from required purchases or leases by franchisees in general. In 2024, Stretch Zone's total revenue from all operations was $12,830,150, and $2,319,603 of that amount was derived from required purchases or leases by franchisees, representing 18% of their total revenue.
Stretch Zone estimates that required purchases and leases account for 15% to 30% of all purchases and leases when establishing the franchise business, and 70% to 85% when operating the franchise business. Franchisees are required to purchase certain items from Stretch Zone, including furniture, furnishings, fixtures, QuickBooks Online accounting system, Career Plug hiring and onboarding software, Microsoft Office 365 Software, KnetK Software, Factor 4 gift card and loyalty program software, Perkville loyalty and reward programs software, and Canva graphic design tool software.
Stretch Zone may change Designated Suppliers and/or the items franchisees must purchase from them based on their experience. Franchisees must purchase or lease certain equipment, supplies, inventory, advertising materials, and other products and services from Authorized Suppliers who meet Stretch Zone's standards and specifications. Stretch Zone may negotiate purchase arrangements with suppliers for the benefit of franchisees, including fee arrangements and costs for marketing and advertising materials, furniture and fixtures, leasehold improvements, and signage.
Prospective franchisees should be aware that while Stretch Zone does not receive revenue directly from Designated Suppliers, a significant portion of their overall revenue comes from mandatory franchisee purchases. This highlights the importance of carefully evaluating the required purchases and their associated costs when considering a Stretch Zone franchise.