What was the net value of Stretch Zone's property and equipment as of December 31, 2023?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ida
April 30, 2025
Balance Sheets
| December 31, | |||
|---|---|---|---|
| 2024 | 2023 | ||
| ASSETS | |||
| Current assets: | |||
| Cash | $ 392,825 | $ 3,083,795 | |
| Cash - restricted | 56,773 | - | |
| Accounts receivable, net | 1,496,658 | 883,442 | |
| Furniture inventory | 37,028 | 25,040 | |
| Due from related parties | 12,648 | 10,558 | |
| Contract asset, current | 50,475 | 6,475 | |
| Celebrity endorsement and marketing | 121,568 | 131,056 | |
| Prepaid expenses | 73,805 | 72,397 | |
| Total current assets | 2,241,780 | 4,212,763 | |
| Property and equipment, net | 92,103 | 27,989 | |
| Celebrity endorsement and marketing, net | 364,703 | 476,783 | |
| Contract asset, net of current portion | 517,333 | 48,408 | |
| Operating lease, right of use assets, net | 876,811 |
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, the net value of property and equipment as of December 31, 2023, was $27,989. This figure represents the depreciated cost of furniture and fixtures owned by the company at that time.
For a prospective Stretch Zone franchisee, this number provides insight into the level of investment Stretch Zone itself has in its own property and equipment. It is important to note that this figure reflects the net value, meaning the original cost less any accumulated depreciation. Depreciation is calculated using a straight-line method over an estimated useful life of 60 to 84 months.
Franchisees should consider this amount in relation to the investments they will need to make in their own locations. While Stretch Zone's figure reflects the corporate entity's assets, franchisees will likely have similar, if not greater, investments in property and equipment for their individual studios. Reviewing this figure in conjunction with other financial disclosures can help a potential franchisee understand the capital expenditure requirements for starting a Stretch Zone franchise.