For a Stretch Zone franchise, how soon before the Opening Date must the Payment System be implemented?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
You will open a separate operating account with a bank for the Franchise Business. You will pay all Royalty Fees, Technology Fees, and other invoices due us and our Affiliates, and make Media Fund contributions, 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 agree to cooperate with us in maintaining the efficient operation of the Payment System, including depositing all Gross Revenues you receive into your operating account within 1 Business Day of receipt. You cannot initiate payments through the ClubReady Electronic Payment System, but we are able to initiate payments through the ClubReady Electronic Payment System for invoices that are due us.
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, franchisees must cooperate with Stretch Zone to implement the Payment System within 15 days before the Opening Date. The Payment System involves opening a separate operating account with a bank for the Franchise Business.
This operating account will be used for all Royalty Fees, Technology Fees, other invoices due to Stretch Zone and its Affiliates, and Media Fund contributions. These payments will come from remittances from the franchisee's members that have been deposited into the operating account by ClubReady processing payments due to Stretch Zone.
The franchisee is required to deposit all Gross Revenues into their operating account within 1 Business Day of receipt and must cooperate with Stretch Zone to maintain the efficient operation of the Payment System. While the franchisee cannot initiate payments through the ClubReady Electronic Payment System, Stretch Zone can initiate payments for invoices that are due to them.