What is the estimated range for insurance costs required before beginning business for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | Column 5 | |
|---|---|---|---|---|---|
| To Whom Payment Is To Be Made | |||||
| Utility Deposits9 | $200 to $800 | Lump Sum | Before beginning business | Utility companies | |
| Office and Store Supplies10 | $1,055 to $2,000 | Lump Sum | Before beginning business | Third Party Vendors | |
| Stretching Tables and Accessories11 | $29,500 to $40,400 | Lump Sum | Before beginning business | Designated Supplier | |
| Insurance12 | $1,750 to $4,000 | Lump Sum | Before beginning business | Designated Insurance Agent | |
| Licenses and Permits13 | $200 to $3,000 | As Incurred | Before beginning business | Governmental Authorities | |
| Attorney’s Fees14 | $1,000 to $5,000 | Lump Sum | Before beginning business | Attorney | |
| Accountant’s Fee15 | $200 to $2,500 | Lump Sum | Before beginning business | Accountant | |
| Travel, Lodging, Meals, Etc. During Franchisee Training and Regional Manager Training Programs16 | $2,000 to $3,000 | As Incurred | Before beginning business | Airlines, Hotels and Restaurants | |
| Initial Advertising | $500 | Lump Sum | On signing the | Us | |
| Contribution to | Franchise | ||||
| Media Fund17 | Agreement | ||||
| Grand Opening Fee18 | $14,950 | Lump Sum | 60 days after signing the Franchise Agreement | Us | |
| Additional Funds19 (3 months) | $10,000 to $30,000 | As Incurred | During the first 3 months of operation | Third Parties | |
| TOTAL | $138,745to $320,099 |
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 estimated cost for insurance before beginning business ranges from $1,750 to $4,000. This is a one-time, lump sum payment due to the designated insurance agent before the business opens.
Stretch Zone requires franchisees to use R.V. Johnson Insurance as their insurance agent. The FDD notes that it is difficult to estimate the ultimate insurance cost for any given franchisee because factors such as the selection of the carrier, the size and location of the premises, the value of leasehold improvements, the amount of inventory, and the amount of wages can vary considerably.
Prospective franchisees should carefully consider these variable factors and consult with R.V. Johnson Insurance to obtain a more precise insurance cost estimate based on their specific circumstances. Understanding these costs is crucial for accurate financial planning before opening a Stretch Zone franchise.