What was the Excess Cash Flow for Stretch Zone in 2024, and what was the extended payment deadline?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
nts through April 30, 2025, which is the date the financial statements were available to be issued.
On April 18, 2025 the Company received a Second Amendment to the Senior Credit Facility and Waiver (the "Amendment and Waiver") by and among the Parent, the Company, and the Lender. The Amendment and Waiver waived the Acknowledged Events of Default for 2024 and presumed through March 31, 2025 as it related to certain covenants and the Excess Cash Flow. The Amendment and Waiver modified the Maximum Consolidated Senior L
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Excess Cash Flow for 2024 was $700,000. The payment deadline for this amount was extended to May 12, 2025. This information is part of an amendment and waiver to Stretch Zone's senior credit facility.
This detail is found within the notes to the financial statements, specifically under subsequent events. This indicates that the company's financial obligations and agreements are subject to change and amendment, which is not uncommon but something a franchisee should be aware of.
For a prospective franchisee, this highlights the importance of understanding the financial health and obligations of Stretch Zone. While the Excess Cash Flow is a positive figure, the need for an amendment and waiver suggests potential financial challenges or non-compliance with original loan terms. It would be wise for a potential franchisee to investigate the reasons behind the amendment and waiver, and how Stretch Zone plans to maintain compliance with its financial covenants in the future.