When is the Stretch Zone Development Fee due, and how must it be paid?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
nal resources to cover your living expenses. You should work with your accountant to develop a personal/family cash flow budget and determine if there is sufficient revenue on the personal level to provide for your family through the initial phase of operations.
REFUNDABILITY
To the best of our knowledge, except as described above, these expenditures are not refundable.
YOUR ESTIMATED INITIAL INVESTMENT – AREA DEVELOPMENT AGREEMENT
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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, the Development Fee is due when signing the Area Development Agreement. This fee is paid as a lump sum to Stretch Zone. The amount varies depending on the number of franchise businesses the developer commits to opening, ranging from $119,000 for two units to $267,750 for six units.
This fee is nonrefundable, meaning that if the franchisee does not open the agreed-upon number of Stretch Zone locations, they will not receive a refund of the development fee. This is a common practice in area development agreements, as the fee compensates the franchisor for granting exclusive development rights within a specific territory.
Prospective Stretch Zone franchisees should carefully consider the number of units they commit to developing, as this decision directly impacts the Development Fee. It is important to assess the market potential of the development area and the franchisee's ability to secure suitable locations and manage multiple units. Franchisees should also be aware of the financial implications of the nonrefundable nature of the fee and ensure they have sufficient capital to fulfill their development obligations.