Does Stretch Zone expect franchisees to lease or own real estate for their franchise location?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
We expect that you will lease rather than own real estate and construct a building.
The typical size of the Premises is 1,000 to 1,500 square feet.
We assume that the landlord will require first and last months' rent and a security deposit equal to one months' rent.
In addition, rent may be subject to tax.
For example, Florida imposes a 5.5% state sales tax on commercial rent.
There may also be a tax imposed by a county.
The tenant usually pays this tax.
Lease costs will vary based upon variances in: (i) size in square feet leased; (ii) cost per square foot; (iii) amount of percentage rent, if any; (iv) the sales figure that percentage rent begins to apply (the "break point"); (v) common area maintenance costs; and (vi) merchant's association costs.
These variances are determined by location, the length of the lease, the age of the leased property, local market conditions, the size of the Premises and the bargaining power of the developer or the property management company.
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 company expects franchisees will lease rather than own the real estate for their Stretch Zone location. The typical size of the premises is expected to be between 1,000 to 1,500 square feet. Stretch Zone also assumes that the landlord will require the first and last months' rent, plus a security deposit equal to one month's rent.
The document further explains that lease costs can vary significantly based on several factors. These include the size of the space, the cost per square foot, percentage rent (if applicable), the sales figure at which percentage rent applies, common area maintenance costs, and merchant's association costs. These variances are influenced by the location, lease length, property age, local market conditions, premises size, and the franchisee's bargaining power with the developer or property management company.
Stretch Zone also provides site selection criteria and requires franchisees to find a site meeting these criteria within 30 days of signing the Franchise Agreement. Franchisees must submit all material information about the proposed site to Stretch Zone for approval, including pictures, population demographics, traffic information, parking details, visibility, neighborhood character, competitive businesses, and the physical characteristics of the site. The lease's effectiveness is contingent upon receiving Stretch Zone's written approval, formalized through an agreement signed by the property owner, the franchisee, and Stretch Zone.