Is a Stretch Zone franchisee allowed to engage a discounting company?
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 Stretch Zone's 2025 Franchise Disclosure Document, franchisees are not allowed to engage a discounting company. The FDD states that this is outlined in Subsection 4.12(i) of the Franchise Agreement.
Stretch Zone also retains the right to set the prices, including minimum and maximum prices, 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 Disclosure Document, Stretch Zone has three pricing tiers for the prices that franchisees may charge for products and services.
This policy ensures that Stretch Zone maintains control over its brand's pricing strategy and prevents franchisees from independently offering discounts that could devalue the brand or create inconsistencies in pricing across different locations. Prospective franchisees should carefully consider these pricing restrictions and the potential impact on their profitability and marketing strategies.