Must a Stretch Zone franchisee adhere to the pricing tier applicable to their Franchise Business?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Pricing Policies. We have the right to set the prices (minimum and maximum) that you charge for the products and services that you offer at your Franchise Business, whether in connection with a sales promotion or otherwise, subject to applicable law. Such prices may vary among our franchisees, based on the demographics and marketing conditions of the DMA in which the Franchise Business is located. As of the date of this Disclosure Document, we have three pricing tiers for the prices that our franchisees may charge for products and services offered at Franchise Businesses. You must adhere to the pricing tier applicable to your Franchise Business, subject to applicable law. You cannot engage a discounting company. [Subsection 4.12(i) of the Franchise Agreement.]
Source: Item 11 — ITEM -11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–44)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, Stretch Zone has the right to set the prices, including minimums and maximums, that franchisees charge for products and services. These prices can vary among franchisees based on the demographics and marketing conditions of the Designated Market Area (DMA) in which the franchise is located. As of the date of the FDD, Stretch Zone utilizes three pricing tiers for products and services offered at franchise locations.
Stretch Zone franchisees must adhere to the pricing tier applicable to their specific franchise business, subject to applicable law. Franchisees are prohibited from engaging a discounting company. This policy ensures that Stretch Zone maintains control over pricing to manage brand consistency and market positioning.
This requirement has significant implications for prospective franchisees. It means that franchisees cannot independently set prices based on their local market conditions or competitive pressures. Instead, they must operate within the pricing structure established by Stretch Zone, which could impact their profitability and revenue potential. Franchisees should carefully consider the assigned pricing tier for their location and its potential impact on their business before investing in a Stretch Zone franchise.