What was the income from Franchise Fees for Stretch Zone from January through March 2025?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The accompanying financial statements include the accounts of Stretch Zone Franchising, LLC (the "Company"), a wholly owned subsidiary of Stretch Zone Holdings, LLC (the "Former Parent"). The Company was organized on November 15, 2015, in the state of Florida. The Company's only business is to offer and sell franchises under the Stretch Zone name and to provide support to its health clubs across the United States. Effective March 31, 2023, the Company was sold by Stretch Zone Holdings, LLC to SZ PEP Holdco, LLC, the Acquiror (the "Parent").
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, a profit and loss statement for Stretch Zone Franchising, LLC from January through March 2025 is included. However, the specific income from franchise fees during this period is not detailed in the provided excerpts.
While the excerpts do mention franchise fees in the context of contract liabilities and deferred revenue, they do not provide a breakdown of the actual income recognized from these fees during the specified three-month period. The notes to the financial statements discuss how Stretch Zone recognizes initial and successor franchise fees over the term of the franchise agreement, but this is an accounting policy disclosure, not a report of actual income.
A prospective Stretch Zone franchisee should request a detailed breakdown of the company's revenue streams, including specific figures for franchise fee income during comparable periods. This information is crucial for understanding the financial performance and stability of the franchisor. It would be beneficial to ask for an itemized income statement that clearly separates franchise fee income from other sources of revenue, such as royalties, training, and equipment sales.