According to the 2025 Stretch Zone Franchise Disclosure Document, the development fee and initial payments for an Area Development Agreement are deferred until the first franchise location under the agreement is open. Specifically, the FDD indicates that the development fee ranges from $119,000 for two units to $267,750 for six units. This fee is payable in a lump sum.

This deferral of payment until the opening of the first franchise location is a notable benefit for prospective Stretch Zone area developers. It reduces the initial financial burden and aligns the payment with the commencement of business operations. This arrangement can be particularly helpful in managing cash flow during the pre-opening phase, allowing developers to allocate resources to setting up the location and meeting pre-opening obligations.

It is important for potential Stretch Zone developers to understand all pre-opening obligations to ensure they are met promptly. Meeting these obligations will allow the first franchise location to open and trigger the payment of the development fee. Prospective developers should carefully review Item 5 of the Stretch Zone FDD, which provides a description of the development fee, and discuss these obligations with the franchisor to avoid any delays or misunderstandings.