When is the insurance coverage fee due to Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
tributions 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 |
| Prepaid Rent and Security Deposit2 | $750 to $15,000 | As Incurred | Before beginning business | Per agreement with landlord |
| Leasehold Improvements3 | $4,000 to $104,400 | As Incurred | Before beginning business | Various Contractors/ Suppliers |
| Architect's and Engineer's Fees4 | $0 to $3,500 | Lump Sum | Before beginning business | Architect/General Contractor |
| Furniture, Fixtures, and Furnishings5 | $3,590 to $7,100 | Lump Sum | Before beginning business | Us as the Designated Supplier |
| Computer System6 | $1,850 to $2,699 | As Incurred | Before beginning business | Designated Suppliers |
| Outdoor Signage7 | $2,000 to $11,000 | Lump Sum | Before beginning business | Landlord or Third Party Vendor |
| Indoor Signage and Graphics8 | $5,700 to $10,750 | Lump Sum | Before beginning business | Designated Supplier |
| 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 |
| Utility Deposits9 | $200 to $800 | Lump Sum | Before beginning business | Utility companies |
| Office and Store Supplies10 | $1,055 to $2,000 | Lump Sum | Before beginning business | Third Party Vendors |
| Stretching Tables and Accessories11 | $29,500 to $40,400 | Lump Sum | Before beginning business | Designated Supplier |
| Insurance12 | $1,750 to $4,000 | Lump Sum | B |
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 insurance coverage fee, which ranges from $1,750 to $4,000, is due as a lump sum payment before beginning business. This payment is made to the Designated Insurance Agent, R.V. Johnson Insurance, as specified in Item 8 of the FDD.
This means that prospective Stretch Zone franchisees must budget for this expense as part of their initial investment. Securing the required insurance coverage is a prerequisite for commencing operations, ensuring that the business is protected from potential liabilities and risks from day one. The specific amount will depend on factors such as the location and size of the premises, the value of leasehold improvements, and the amount of inventory.
It is important to note that while Stretch Zone requires franchisees to use R.V. Johnson Insurance as their Insurance Agent, the method and timing of payments are determined between the franchisee and the insurer. The estimated cost is based on rates in effect in Florida, and the cost of workers' compensation insurance can vary from state to state. Franchisees should confirm the exact insurance requirements and costs with R.V. Johnson Insurance to accurately plan their initial expenses.