What was the income from Club Ready - Royalties for Stretch Zone from January through March 2025?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Jan - Mar 25 | |
|---|---|
| Ordinary Income/Expense | |
| Income Billable Expense Income Club Ready - Royalties | -1,254.07 1,416,631.78 |
| Franchise Fee | 445,863.26 |
| Media Fund | 472,464.24 |
| Rebate Income | 840.00 |
| SCORE Audit Program | 47,125.00 |
| Store FAD Revenue | 73,553.00 |
| Technology Fee | 407,380.00 |
| Training SZ | 131,132.07 |
| Total Income | 2,993,735.28 |
| Cost of Goods Sold | 32,019.55 |
| Gross Profit | 2,961,715.73 |
| Expense | |
| (A) Other G&A | 1,203,375.32 |
| Advertising & Marketing | 489,239.30 |
| Bank Charges | 14,389.22 |
| Commission - MIA | 1,618.74 |
| Depreciation Expense | 490.37 |
| Dues & Subscriptions | 15,989.05 |
| FAC Expenses | 348.66 |
| Insurance | 26,035.04 |
| Interest Expense | 1,092,793.88 |
| Legal & Professional Fees | 87,896.24 |
| Meals and Entertainment | 1,948.18 |
| Office Equipment | 6,643.51 |
| Office Expenses | 7,328.32 |
| Office Supplies | 8,712.02 |
| Other General and Admin Expense | -16,568.99 |
| Payroll Expenses | 24,626.14 |
| Payroll Service | 3,671.34 |
| Payroll Taxes | 75,603.85 |
| PEG Expenses | 27,967.68 |
| Real Estate Discovery | 7,500.00 |
| Reimbursable Zee Expense | 310,160.64 |
| Rent or Lease | 111,828.59 |
| Repair & Maintenance | 674.93 |
| Shipping, Delivery and Postage | 3,495.98 |
| Taxes & Licenses | 2,225.00 |
| Travel | 1,362.25 |
| Uncategorized Expense | 1,937.70 |
| Utilities | 2,950.79 |
| Website | 79,917.85 |
| Total Expense | 3,594,161.60 |
| Net Ordinary Income | -632,445.87 |
| Net Income | -632,445.87 |
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the income from Club Ready - Royalties totaled $1,416,631.78 for the period of January through March 2025. This figure represents a significant portion of Stretch Zone's total income during this period. Total income was $2,993,735.28 for the same period.
For a prospective franchisee, understanding the revenue streams of Stretch Zone is crucial. Royalties, such as those from Club Ready, are a primary source of income for the franchisor. This information helps potential franchisees assess the financial health and stability of the franchise system. It also provides insight into how different revenue streams contribute to the overall financial performance of Stretch Zone.
It is important to note that while the Club Ready - Royalties income is substantial, the document also lists various expenses that Stretch Zone incurs. These expenses, including advertising and marketing, interest, and legal fees, totaled $3,594,161.60 for the same period, resulting in a net ordinary income loss of $632,445.87. Prospective franchisees should consider these expenses and the overall financial performance when evaluating the franchise opportunity.
Furthermore, the financial statements included in the FDD are unaudited. The FDD explicitly states that "THESE FINANCIAL STATEMENTS WERE PREPARED WITHOUT AN AUDIT. PROSPECTIVE FRANCHISEES OR SELLERS OF FRANCHISES SHOULD BE ADVISED THAT NO INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT HAD AUDITED THESE FIGURES OR EXPRESSED HIS OR HER OPINION WITH REGARD TO THE CONTENT OR FORM." This lack of independent verification adds a layer of risk, and prospective franchisees should perform their own due diligence and possibly seek independent financial advice.