Which items in the Stretch Zone Franchise Disclosure Document relate to pre-opening purchases/leases?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement | Franchise | |
|---|---|---|---|
| Disclosure Document ITEM | |||
| a. Site selection and acquisition/lease | Section 4.1 | ITEMS 6, 7, 8 and 11 | |
| b. Pre-opening purchases/leases | Sections 4.1, 4.2, 4.3, 4.4,4.5, 4.7, 4.8, 4.9, 4.11, and 4.12 | ITEMS 5, 7, 8 and 11 |
Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, Item 6, 'Other Fees,' provides a breakdown of various obligations and their corresponding sections within the Franchise Agreement and relevant items in the Franchise Disclosure Document (FDD). Specifically, pre-opening purchases and leases are addressed in Sections 4.1, 4.2, 4.3, 4.4, 4.5, 4.7, 4.8, 4.9, 4.11, and 4.12 of the Franchise Agreement, and are associated with Items 5, 7, 8, and 11 of the FDD. This indicates that these items contain information about the costs and requirements related to securing a location and acquiring necessary assets before the Stretch Zone business can open.
Item 8 of the Stretch Zone FDD, 'Restrictions on Sources of Products and Services,' also details specific pre-opening purchases. Franchisees must purchase furniture, furnishings, and fixtures directly from Stretch Zone. Additionally, franchisees are required to sublicense several software systems from Stretch Zone, including QuickBooks Online for accounting, Career Plug for hiring and onboarding, Microsoft Office 365, KnetK for marketing automation and data reporting, Factor 4 for gift card and loyalty programs, Perkville for loyalty and reward programs, and Canva for graphic design. These restrictions ensure brand consistency and operational standards but also limit the franchisee's ability to seek potentially lower-cost alternatives.
Item 6 further elaborates on pre-opening expenses, including architect and engineer fees, FF&E (furniture, fixtures, and equipment), computers and POS systems, outdoor signage, and indoor signage and graphics. While Stretch Zone provides standard plans, franchisees may need to hire a local architect and engineer to adapt these plans to the specific site and local regulations. Franchisees must purchase FF&E from Stretch Zone's designated supplier, and the costs can vary based on market conditions and the size of the premises. The franchisee is also responsible for utility deposits, supplies, stretching tables and accessories, and initial insurance costs. These pre-opening purchases represent a significant initial investment for the franchisee.