What was the net change in the number of company-owned Stretch Zone units during 2023?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Unit Type | Year | Units at the Start of the Year | Units at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2022 | 153 | 240 | +87 |
| 2023 | 240 | 330 | +90 | |
| 2024 | 330 | 377 | +47 | |
| Company- | 2022 | 3 | 3 | 0 |
| Owned | ||||
| 2023 | 3 | 0 | -3 | |
| 2024 | 0 | 0 | 0 | |
| Total Units | 2022 | 156 | 243 | +87 |
| 2023 | 243 | 330 | +87 | |
| 2024 | 330 | 377 | +47 |
Source: Item 20 — ITEM -20 OUTLETS AND FRANCHISEE INFORMATION (FDD pages 76–84)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the net change in the number of company-owned units during 2023 was -3. The table provided in Item 20 shows that Stretch Zone started 2023 with 3 company-owned units and ended the year with 0 company-owned units.
This decrease in company-owned units is further explained in the document. In March 2023, Stretch Zone was acquired by its Parent company. At the time of the acquisition, Stretch Zone held a majority ownership in three Stretch Zone businesses located in Florida, which were categorized as company-owned units.
In connection with the acquisition, Stretch Zone, along with the minority owner of these businesses, entered into franchise agreements for each of the three businesses. As a result, these units were re-categorized as franchise units rather than company-owned units, explaining the net change of -3 for company-owned units in 2023.