Is a Stretch Zone franchise considered a passive investment?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not our employee. You are your own boss running your own business subject to our rights under your Franchise Agreement. You acknowledge and agree that your Franchise Business is not a "passive" investment. We recommend that you be active in the operation of your Franchise Business, but we do not require any personal "on-premises" participation by you. As discussed
below, however, you must designate an individual to serve as your Regional Manager. You must also have at least one Certified Stretch Zone Practitioner. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual, regardless of whether you choose to operate the Franchise Business as a full-time owner/operator or hire another individual to serve as your Regional Manager.
If you are a Business Entity, we recommend that one or more of the Franchise Owners participate personally in the direct operation of the Franchise Business, but we do not require any personal "on-premises" participation by a Franchise Owner. As discussed below, however, you must designate an individual to serve as your Regional Manager. At least one person must be a Certified Stretch Zone Practitioner. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual, regardless of whether you choose to operate the Franchise Business as a full-time owner/operator or hire another individual to serve as your Regional Manager.
Source: Item 15 — ITEM -15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 62–64)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, a Stretch Zone franchise is not considered a passive investment. While the franchisor recommends that franchisees be active in the operation of their Stretch Zone business, they do not require personal "on-premises" participation. However, franchisees must designate an individual to serve as their Regional Manager and have at least one Certified Stretch Zone Practitioner.
Even if a franchisee chooses to hire someone else as the Regional Manager, they remain solely liable and responsible for the Stretch Zone franchise's operation, adhering to the Franchise Agreement and Operations Manual. If the franchise is owned by a business entity, Stretch Zone recommends that at least one Franchise Owner participate directly in the business, but again, does not mandate on-premises participation.
Stretch Zone emphasizes that the Regional Manager must devote their full-time efforts to managing and operating the franchise. This individual needs to complete the Regional Manager Training Program, including the Stretch Practitioner Training Program and Sales Associate Training Program, before managing the Stretch Zone location. The franchisee is responsible for the expenses associated with training any replacement Regional Manager, including the standard training fees charged by Stretch Zone.