When are initial and successor franchise fees payable to Stretch Zone?

According to Stretch Zone's 2025 Franchise Disclosure Document, initial and successor franchise fees are due upon signing the new or successor franchise agreement. This means that a prospective franchisee must pay the initial franchise fee when they sign the franchise agreement to open a new Stretch Zone location. Similarly, if a franchisee renews their agreement with Stretch Zone, the successor franchise fee is payable at the time of signing the successor agreement. This is a fairly standard practice in franchising, as these fees represent the franchisor's compensation for granting the franchise rights and providing initial support.

For a prospective Stretch Zone franchisee, this means budgeting for the initial franchise fee to be paid upfront. It's crucial to have these funds readily available when you're ready to commit to the franchise. Understanding the timing of this payment is essential for managing your finances and ensuring a smooth start to your Stretch Zone franchise journey. Additionally, franchisees should be aware that transfer fees are paid to Stretch Zone when a franchise agreement is transferred from one franchisee to another.

Stretch Zone recognizes these initial, successor, and transfer fees as revenue over the term of the franchise agreement. This accounting practice spreads the recognition of the revenue over the life of the agreement rather than recognizing it all upfront. This approach provides a more accurate reflection of the ongoing value and support that Stretch Zone provides to its franchisees throughout the duration of the franchise term.