For a Stretch Zone franchise, what is the deadline for depositing Gross Revenues into the operating account?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 3.3 PAYMENT SYSTEM
You will open a separate operating account with a bank for the Franchise Business. You will make all Royalty Fees, Technology Fees and Media Fund contributions and other invoices due us and our Affiliates from remittances from your members that have been deposited into your operating account by ClubReady processing payments due us (the "Payment System"). You will cooperate with us to implement the Payment System within 15 days before the Opening Date. You ag
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, franchisees are required to open a separate operating account for their Stretch Zone business. All Royalty Fees, Technology Fees, Media Fund contributions, and other invoices due to Stretch Zone and its affiliates must be paid from remittances from members that have been deposited into this operating account via the ClubReady payment processing system.
Stretch Zone requires franchisees to cooperate in implementing this payment system within 15 days before the franchise's opening date. This ensures that the system is in place and functioning correctly from the start of operations, allowing for seamless processing of payments and accurate tracking of revenue.
While the FDD specifies the use of a payment system and the timing for its implementation, it does not explicitly state a specific deadline for depositing gross revenues into the operating account. A prospective Stretch Zone franchisee should clarify the exact frequency and timing requirements for depositing revenues with the franchisor to ensure compliance and proper financial management.