What are the franchisee's obligations regarding software upgrades and updates for the Stretch Zone Computer System?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
----------|-------------|------| | Administrative Expenses | $25,880 | 1% | | Public Relations | $115,205 | 6% | | Media Placement | $1,940,928 | 93% |
OTHER ADVERTISING INFORMATION
We have the sole right to enforce your obligations and all other Franchisees that make Advertising and Marketing Contributions. Neither you, nor any other Franchisee obligated to make Advertising and Marketing Contributions, is a third party beneficiary of the funds nor has any right to enforce any obligation to contribute the funds. [Subsection 3.1(c) of the Franchise Agreement.]
We assume no other direct or indirect liability or obligation to you for the maintenance, direction or administration of the Media Fund, except as expressly provided in ARTICLE 7 of the Franchise Agreement.
We can charge the Media Fund for our costs for services we provide, in lieu of
Source: Item 23 — ADVERTISING RECEIPTS AND EXPENDITURES FOR FISCAL YEAR 2024 (FDD pages 44–54)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, franchisees are responsible for periodic upgrades and updates to the Computer System's software that Stretch Zone requires for the Franchise Business. Stretch Zone is not obligated to provide ongoing maintenance, repairs, upgrades, or updates. The FDD specifies that there are no contractual limitations on the frequency and cost of these required upgrades and updates.
This means that while Stretch Zone mandates the use of specific software, the franchisee bears the responsibility for keeping it current. The estimated annual costs for optional or required maintenance, upgrades, or support contracts for the Computer System are $200. However, the franchisee should be aware that the actual costs could fluctuate depending on the frequency and nature of the required updates.
While Club Ready offers limited software support as part of its license fee, franchisees may incur additional charges for services beyond the scope of that agreement. The computer manufacturer or local dealers may offer hardware maintenance agreements for the Computer System, but Stretch Zone does not know the cost of any hardware maintenance agreement. This leaves the franchisee to research and budget for these potential expenses.
Prospective franchisees should carefully consider these ongoing technology costs and inquire with Stretch Zone about the typical frequency and scope of required software updates to better estimate these expenses. Understanding these obligations is crucial for budgeting and maintaining compliance with Stretch Zone's technology standards.