For a Stretch Zone franchise, what is the timeframe for depositing all Gross Revenues into the operating account after receipt?
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 are required to deposit all Gross Revenues into their operating account within 1 business day of receipt. This requirement is part of maintaining the efficient operation of the Payment System, which is used for processing payments due to Stretch Zone.
This immediate deposit requirement ensures that funds are readily available for royalty fees, technology fees, and other invoices owed to Stretch Zone and its affiliates. These payments are deducted from the ClubReady remittances, which are payments from members processed through the Payment System. The franchisee cannot initiate payments through the ClubReady Electronic Payment System, but Stretch Zone can for invoices that are due.
For a prospective Stretch Zone franchisee, this means maintaining diligent financial practices to ensure daily deposits are made. Failing to comply with this requirement could lead to penalties or other enforcement actions from the franchisor. This also highlights the importance of understanding and adhering to the technology and payment systems mandated by Stretch Zone.