What is the Stretch Zone franchisee responsible for covering during the pre-opening phase?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | Column 5 | |
|---|---|---|---|---|---|
| To Whom Payment Is To Be Made | |||||
| Utility Deposits9 | $200 to $800 | Lump Sum | Before beginning business | Utility companies | |
| Office and Store Supplies10 | $1,055 to $2,000 | Lump Sum | Before beginning business | Third Party Vendors | |
| Stretching Tables and Accessories11 | $29,500 to $40,400 | Lump Sum | Before beginning business | Designated Supplier | |
| Insurance12 | $1,750 to $4,000 | Lump Sum | Before beginning business | Designated Insurance Agent | |
| Licenses and Permits13 | $200 to $3,000 | As Incurred | Before beginning business | Government |
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 responsible for covering several expenses during the pre-opening phase. These include utility deposits, which range from $200 to $800, and office and store supplies, estimated between $1,055 and $2,000. Franchisees must also purchase stretching tables and accessories from the designated supplier, costing between $29,500 and $40,400. Additionally, franchisees are required to secure insurance, with costs ranging from $1,750 to $4,000, and obtain necessary licenses and permits, which can cost between $200 and $3,000. These payments are typically required before the business begins operations.
These pre-opening expenses are crucial for setting up the Stretch Zone franchise and ensuring it is ready for business. The costs associated with stretching tables and accessories represent a significant investment, highlighting the importance of the core equipment to the Stretch Zone business model. Similarly, securing appropriate insurance and necessary licenses and permits are essential for legal compliance and risk management. Franchisees need to factor in these costs when planning their initial investment and working capital requirements.
It is important to note that these costs are estimates and can vary based on location, specific needs, and vendor pricing. For instance, utility deposits will depend on the policies of local utility companies, and insurance costs can vary based on the size and location of the premises. Therefore, prospective Stretch Zone franchisees should conduct thorough research and due diligence to obtain accurate quotes and estimates for their specific circumstances. Consulting with an accountant and insurance agent is advisable to develop a comprehensive financial plan.
Overall, the pre-opening phase requires careful financial planning and management. Stretch Zone franchisees must be prepared to cover these upfront costs to establish their business and ensure a smooth launch. Understanding these obligations and budgeting accordingly is essential for the long-term success of the franchise.