If Stretch Zone obtains insurance for me, when is the payment due?
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 | Governmental Authorities | |
| Attorney’s Fees14 | $1,000 to $5,000 | Lump Sum | Before beginning business | Attorney | |
| Accountant’s Fee15 | $200 to $2,500 | Lump Sum | Before beginning business | Accountant | |
| Travel, Lodging, Meals, Etc. During Franchisee Training and Regional Manager Training Programs16 | $2,000 to $3,000 | As Incurred | Before beginning business | Airlines, Hotels and Restaurants | |
| Initial Advertising | $500 | Lump Sum | On signing the | Us | |
| Contribution to | Franchise | ||||
| Media Fund17 | Agreement | ||||
| Grand Opening Fee18 | $14,950 | Lump Sum | 60 days after signing the Franchise Agreement | Us | |
| Additional Funds19 (3 months) | $10,000 to $30,000 | As Incurred | During the first 3 months of operation | Third Parties | |
| TOTAL | $138,745to $320,099 |
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 required to secure insurance coverage as specified in the Operations Manual. While Stretch Zone mandates the use of R.V. Johnson Insurance as the insurance agent, the specific payment terms are determined between the franchisee and the insurance provider.
Item 6 includes a table outlining various expenditures. The estimated cost for insurance ranges from $1,750 to $4,000, payable as a lump sum before beginning business operations. This payment is made to the Designated Insurance Agent.
Prospective franchisees should note that while Stretch Zone requires using a specific insurance agent, the actual insurance costs can vary significantly based on factors such as the location and size of the premises, the value of leasehold improvements, inventory, and wages. It is advisable to consult with R.V. Johnson Insurance to obtain a precise quote tailored to your specific circumstances to budget accordingly.