What is included in the 'Insurance Coverage' fee charged by Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase certain insurance that includes the risks, amount of coverage and deductibles stated in the Operations Manual through R.V. Johnson Insurance as your Insurance Agent. The types and minimum amounts of insurance you must carry are:
| Type of Insurance | Amounts |
|---|---|
| Comprehensive Commercial Liability | $1,000,000 |
| (each occurrence) | |
| Damage to Rented Premises | $1,000,000 |
| (each occurrence) | |
| Medical Payments | $2,000 |
| (any one person) | |
| Personal and Advertising Injury | $1,000,000 |
| General Aggregate | $5,000,000 |
| Products | $5,000,000 |
| – | |
| Completed | |
| Operations | |
| Aggregate |
| 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 |
We base this estimate on the rates in effect in Florida.
The cost of workers' compensation insurance varies from state to state.
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 specific insurance coverage through R.V. Johnson Insurance, the designated insurance agent. The types and minimum amounts of insurance a franchisee must carry are outlined in the Operations Manual.
The required insurance coverage includes Comprehensive Commercial Liability with $1,000,000 for each occurrence, Damage to Rented Premises with $1,000,000 for each occurrence, Medical Payments of $2,000 for any one person, Personal and Advertising Injury coverage of $1,000,000, a General Aggregate of $5,000,000, and Products – Completed Operations Aggregate of $5,000,000.
The FDD indicates that the estimated cost for insurance ranges from $1,750 to $4,000, payable as a lump sum before beginning business. However, the ultimate cost can vary significantly based on factors such as the insurance carrier, the size and location of the premises, the value of leasehold improvements, the amount of inventory, and wage amounts. The estimate provided is based on rates in effect in Florida, and franchisees should be aware that workers' compensation insurance costs differ from state to state.
Prospective Stretch Zone franchisees should carefully review the Operations Manual and consult with R.V. Johnson Insurance to obtain accurate insurance quotes tailored to their specific location and business circumstances. Understanding these insurance requirements and costs is crucial for budgeting and ensuring compliance with Stretch Zone's standards.