When is the initial franchise fee due for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ting power as Franchised Units on all matters, including fees. The obligation of each Unit to contribute to an advertising cooperative (if formed in the applicable DMA) will not exceed 2% of monthly Gross Revenues. We will credit these contributions against your obligation for Local Advertising.
ITEM -7 ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT – SINGLE UNIT FRANCHISE
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 |
|---|---|---|---|---|
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Initial Franchise Fee1 | $59,500 | Lump Sum | On signing the Franchise Agreement | Us |
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, the initial franchise fee is due upon signing the Franchise Agreement. The standard initial franchise fee is $59,500, payable as a lump sum to Stretch Zone. However, the FDD also notes that if a franchisee qualifies under the VetFran Program, Stretch Zone will reduce the standard Initial Franchise Fee for the first Franchise Business only to $53,550.
This means that a prospective Stretch Zone franchisee must be prepared to pay the initial franchise fee at the time they formally agree to the franchise terms. This fee grants the franchisee the right to operate a Stretch Zone business under the company's brand and system. The lump sum payment method means the entire fee is due at once, rather than in installments.
It is important to note the potential discount available through the VetFran Program, which could significantly reduce the initial investment for eligible veterans. Franchisees should confirm their eligibility and ensure the reduced fee is correctly documented in the Franchise Agreement. All fees paid to Stretch Zone are nonrefundable.