Who determines the variances in lease costs for a Stretch Zone location?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Lease costs will vary based upon variances in: (i) size in square feet leased; (ii) cost per square foot; (iii) amount of percentage rent, if any; (iv) the sales figure that percentage rent begins to apply (the "break point"); (v) common area maintenance costs; and (vi) merchant's association costs.
These variances are determined by location, the length of the lease, the age of the leased property, local market conditions, the size of the Premises and the bargaining power of the developer or the property management company.
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, lease costs are influenced by several factors, including the size of the premises, cost per square foot, percentage rent, the sales figure at which percentage rent applies, common area maintenance costs, and merchant's association costs. These variances are determined by location-specific conditions, the lease's length, the property's age, local market conditions, the premises' size, and the bargaining power of the developer or property management company.
For a prospective Stretch Zone franchisee, this means that securing a lease involves careful consideration of various financial elements that can significantly impact the overall cost. The franchisee should be prepared to negotiate these terms with the landlord or property management company, keeping in mind that factors like location and market conditions play a crucial role in determining the final lease expenses. Understanding these variables is essential for accurate financial planning and forecasting.
Stretch Zone also provides site selection criteria and requires franchisees to submit potential locations for approval, ensuring they meet specific standards. The franchisor's approval of a proposed lease does not impose any liability on them. This highlights the importance of thorough due diligence and potentially seeking professional advice during lease negotiations to ensure favorable terms and avoid unexpected costs. Franchisees should also be aware that Stretch Zone may derive revenue from leases.