When is the initial franchise fee of $59,500 due for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| (a) and you are open for business. Franchisees currently purchasing a Franchise. | Initial Franchise Fee. You must pay to us an Initial Franchise Fee of $59,500. The Initial Franchise Fee will be deferred and is not payable to us until we have complied with all of our pre-opening obligations to you under this Agreement The Initial Franchise Fee is uniform as to all Each of the undersigned acknowledges having read this Addendum, understands and |
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Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, the initial franchise fee of $59,500 is deferred and not payable until Stretch Zone has fulfilled all of its pre-opening obligations to the franchisee. This addendum to the franchise agreement clarifies the payment terms for franchisees currently purchasing a franchise.
This deferred payment structure benefits the franchisee by aligning the payment of the initial fee with the franchisor's delivery of essential pre-opening support. It reduces the franchisee's upfront financial burden and ensures that Stretch Zone is committed to providing the necessary assistance before receiving the full initial fee.
Prospective franchisees should carefully review the specific pre-opening obligations outlined in the Franchise Agreement to understand the conditions that trigger the payment of the initial franchise fee. This ensures clarity and avoids potential disputes regarding when the fee becomes due.