What is the estimated useful life of the in-progress software asset for Stretch Zone franchisees?

According to Stretch Zone's 2025 Franchise Disclosure Document, the in-progress software asset, which consists of application development costs for franchisees, has an estimated useful life of 48 months. The software was anticipated to be completed in the second quarter of 2025, and amortization will begin when it is first placed in service.

For a prospective Stretch Zone franchisee, this means that the cost of the software will be depreciated over a 48-month period once the software is operational. Amortization is the systematic reduction of the book value of an intangible asset. This depreciation can impact the franchisee's financial statements and tax obligations.

It is important for franchisees to understand how this amortization schedule will affect their profitability and tax liabilities. Franchisees should consult with financial advisors to fully understand the implications of this software asset and its depreciation on their business's financial health.