Is the Grand Opening Fee for a Stretch Zone franchise refundable?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ou must pay to us an initial contribution of $500 when your Franchise Business opens. You must also pay us a continuing monthly Advertising Contribution to the Media Fund in an amount equal to 2% of monthly Gross Revenues. We have the sole right to enforce your obligations and all other Franchisees that ma
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Grand Opening Fee is non-refundable. Franchisees must pay Stretch Zone a non-refundable fee of $14,950 within 60 days of signing the Franchise Agreement. This fee is in exchange for grand opening assistance that Stretch Zone provides in connection with the Franchise Business, as detailed in Section 2.13 of the FDD.
This means that once a prospective Stretch Zone franchisee signs the Franchise Agreement, they are obligated to pay the $14,950 Grand Opening Fee, and this fee will not be returned under any circumstances. This is a crucial point for potential franchisees to consider, as it represents a significant upfront investment that is not contingent on the success of the grand opening or any other factor.
Franchisees should carefully evaluate their financial situation and business plan before signing the Franchise Agreement to ensure they are comfortable with this non-refundable fee. It is also advisable to fully understand the scope and nature of the grand opening assistance that Stretch Zone provides in exchange for this fee, as outlined in Section 2.13 and the Operations Manual, to determine if it aligns with their expectations and needs.