What information must be included in the statement of costs to open provided by a Stretch Zone franchisee?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Within three months after you open, you will prepare and provide us with a complete and detailed written statement in the form contained in the Operations Manual containing a breakdown of all costs you incurred in the construction and operation of the Franchise Business. [Subsection 4.10(c) of the Franchise Agreement]
Source: Item 11 — ITEM -11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–44)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, within three months of opening their location, franchisees must provide Stretch Zone with a comprehensive written statement detailing all expenses incurred during the construction and operation of the franchise. This statement must adhere to the format specified in the Operations Manual.
This requirement ensures that Stretch Zone has a clear understanding of the financial investments made by its franchisees. By providing a detailed breakdown of costs, franchisees contribute to a transparent financial overview of the entire franchise system. This information can be used by Stretch Zone for various purposes, including analyzing the financial performance of individual locations, identifying cost-saving opportunities, and refining financial projections for prospective franchisees.
It is important for prospective Stretch Zone franchisees to understand this obligation and to maintain accurate records of all expenses incurred during the pre-opening and initial operation phases. Failure to provide the statement of costs or providing an incomplete or inaccurate statement could potentially lead to issues with the franchisor. Franchisees should familiarize themselves with the specific requirements outlined in the Operations Manual to ensure compliance.