Where in the Stretch Zone Franchise Disclosure Document can I find the description of the 'Initial Franchise Fee'?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
endment is effective only to the extent that the jurisdictional requirements of the North Dakota Franchise Investment Law as to each provision are met independent of this Addendum. A provision has no force or effect if the jurisdictional requirements
are not met independent of this Addendum. If this Addendum is inconsistent with any terms of the Area Development Agreement, the terms of this Addendum govern.
Each of th
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 the 2025 Stretch Zone Franchise Disclosure Document, the addendum to the franchise agreement includes details regarding the initial franchise fee. Specifically, it states that franchisees must pay Stretch Zone an initial franchise fee of $59,500. However, this fee is deferred and not payable until Stretch Zone has fulfilled all of its pre-opening obligations to the franchisee. The document specifies that this initial franchise fee is uniform for all franchisees currently purchasing a franchise.
This deferred payment structure is a notable benefit for prospective Stretch Zone franchisees. It means they are not required to pay the initial franchise fee until Stretch Zone has met its pre-opening obligations, reducing the upfront financial burden and risk. This arrangement ensures that Stretch Zone is incentivized to provide the necessary support and resources to get the franchisee's business up and running before collecting the fee.
It's important for potential franchisees to understand exactly what constitutes Stretch Zone's pre-opening obligations. These obligations should be clearly outlined in the franchise agreement and other parts of the FDD. Franchisees should carefully review these obligations to ensure they are met before the initial franchise fee becomes payable. This deferred payment structure may not be typical in all franchise systems, as many franchisors require the initial fee to be paid upfront upon signing the franchise agreement.