How many additional Stretch Zone franchise locations did thecelebrity open in 2023?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
e Company paid $500,000 and $632,497 for the years ended December 31, 2024, and 2023, respectively.
The agreement enabled the celebrity to open 20 stores valued at $533,250, under a consolidated area development agreement, encompassing three development areas on December 31, 2021. The Company determined the value of the 20 stores based on its current arrangements with third-party entities and recorded an asset, celebrity endorsement, and an offsetting deferred revenue for $533,250. The celebrity endorsement asset is being amortized on a straight-line basis over five years, modified for the amendment and extension, whereas the deferred revenue is being recognized as revenue ratably upon each store opening. During the years ended December 31, 2024 and 2023, the celebrity did not open any additional franchise locations, however one location was transferred and sold during each of the years ended December 31, 2024 and 2023. In 2023, the revenue for the eleven stores, was $279,640, and in 2024, the revenue for the nine stores was $231,476. At December 31, 2024 and 2
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, a celebrity had an agreement to open 20 Stretch Zone locations under a consolidated area development agreement by December 31, 2021. The agreement was valued at $533,250.
The FDD states that during 2023, the celebrity did not open any additional Stretch Zone franchise locations. However, one location was transferred and sold during that year. The revenue for the eleven stores in 2023, was $279,640.
As of December 31, 2024 and 2023, there remained unamortized deferred revenue of $213,300 for eight unopened franchise locations. This means that as of the end of 2023, the celebrity still had eight of the original 20 locations that had not yet opened as Stretch Zone franchises.