According to Stretch Zone's 2025 Franchise Disclosure Document, Development Fees and initial payments by Developers are deferred until the first franchise under the Area Development Agreement opens. This means that individuals or entities entering into an Area Development Agreement with Stretch Zone will not be required to pay the Development Fees or any other initial payments until they have successfully opened their first Stretch Zone franchise location as part of that agreement.

This deferral of fees represents a significant benefit for developers, as it reduces the upfront financial burden associated with starting a Stretch Zone franchise. Instead of paying the fees immediately upon signing the Area Development Agreement, developers can allocate their capital towards the actual establishment and operation of their first location. This can be particularly helpful in managing cash flow and ensuring sufficient resources are available for initial setup costs, marketing, and other essential expenses.

However, it is important for prospective developers to understand the conditions attached to this deferral. The fees become due once the first franchise location opens, so developers need to be prepared to make the required payments at that time. This necessitates careful planning and financial forecasting to ensure that the necessary funds are available when the payment obligation arises. Developers should also clarify with Stretch Zone what constitutes the opening of a franchise and what specific criteria must be met to trigger the payment of the deferred fees.