Where in the Stretch Zone Franchise Disclosure Document is information added to the end of Item 5?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 5 is amended to add the following applicable language to the end of the applicable section of Item 5:
INITIAL FEES
All fees paid to the Franchisor by the Franchisee, including payments for goods and services received from the Franchisor before the business opens, shall be deferred pending satisfaction of all of the Franchisor's pre-opening obligations to the Franchisee.
INITIAL CONTRIBUTION TO MEDIA FUND
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 91–99)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, there are instances where information is added to the end of Item 5. Specifically, the Maryland Addendum states that Item 5 is amended to include language at the end of the applicable section. This addition stipulates that all fees paid to Stretch Zone by the franchisee, including payments for goods and services received before the business opens, will be deferred until Stretch Zone has fulfilled all pre-opening obligations to the franchisee.
Similarly, the Minnesota Addendum also amends Item 5 to add applicable language to the end of the section. This language specifies that all fees paid to Stretch Zone by the franchisee, including payments for goods and services received before opening, will be deferred until Stretch Zone has satisfied all pre-opening obligations. The Minnesota addendum further clarifies that the initial advertising contribution will also be deferred until Stretch Zone has complied with all pre-opening obligations and the franchisee is open for business. Additionally, all development fees and initial payments by developers are deferred until the first franchise under the Area Development Agreement opens.
Furthermore, the Stretch Zone FDD also states that the initial franchise fee constitutes part of their general operating funds and will be used as such at their discretion. This information is added to the end of Item 5 of the Franchise Disclosure Document. These stipulations regarding fee deferrals and the use of initial franchise fees are important for prospective franchisees to understand, as they directly impact the financial obligations and operational timelines associated with opening a Stretch Zone franchise in Maryland, Minnesota, or other locations.