In Hawaii, under what conditions are the initial fees for a Stretch Zone franchise deferred?

According to Stretch Zone's 2025 Franchise Disclosure Document, initial fees for franchisees in Hawaii are deferred under specific conditions. All initial fees are deferred until Stretch Zone has fulfilled all pre-opening obligations and the franchisee is open for business. This deferral requirement was imposed by the Hawaii Department of Commerce and Consumer Affairs due to Stretch Zone's financial condition.

This means that a new Stretch Zone franchisee in Hawaii will not be required to pay any initial franchise fees until the franchisor has completed all of its responsibilities to get the franchise location ready for opening, and the location is actually open and operating. This arrangement potentially reduces the upfront financial burden on the franchisee and aligns the payment of fees with the commencement of business operations.

The deferral is specifically linked to Stretch Zone's financial condition as assessed by the Hawaii Department of Commerce and Consumer Affairs. This suggests that the deferral is a measure to protect franchisees, ensuring that they are not paying fees to a franchisor that may not be financially stable enough to provide the necessary support and services for opening the franchise. Prospective franchisees should carefully consider the implications of this deferral and the underlying financial condition of Stretch Zone, as it may impact the level of support and resources available to them.