For Stretch Zone, what does a '0' in the 'Non-Renewals' column indicate?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
EM -20 OUTLETS AND FRANCHISEE INFORMATION**
Table No. 1 System wide Unit Summary For Years 2022 to 2024
| 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 | Table No. 2 Transfers of Units from Franchisees to New Owners (other than Us) For Years 2022 to 2024
| State1 | Year | Number of Transfers | |
|---|---|---|---|
| Alabama | 2022 2023 2024 | 1 2 3 | |
| Arizona | 2022 2023 2024 | 2 1 9 | |
| Arkansas | 2022 2023 2024 | 0 0 1 | |
| California | 2022 2023 2024 | 1 0 0 | |
| Connecticut | 2022 2023 2024 | 0 1 0 | |
| Colorado | 2022 2023 2024 | 0 3 2 |
| State1 | Year | Number of Transfers | |---|---|---| | Florida | 2022 | 10 | | | 2023 | 3 | | | 2024 | 31 | | Georgia | 2022 | 5 | | | 2023 | 2 | | | 2024 | 8 | | Idaho | 2022 | 0 | | | 2023 | 0 | | | 2024 | 2 | | Illinois | 2022 | 0 | | | 2023 | 4 | | | 2024 | 0 | | Louisiana | 2022 | 0 | | | 2023 | 0 | | | 2024 | 1 | | Maryland | 2022 | 0 | | | 2023 | 0 | | | 2024 | 2 | | Massachusetts | 2022 | 0 | | | 2023 | 0 | | | 2024 | 3 | | Missouri | 2022 | 1 | | | 2023 | 0 | | | 2024 | 1 | | Nebraska | 2022 | 0 | | | 2023 | 0 | | | 2024 | 2 | | New Jersey | 2022 | 0 | | | 2023 | 1 | | | 2024 | 1 | | Nevada | 2022 | 0 | | | 2023 | 4 | | | 2024 | 3 | | North Carolina | 2022 | 0 | | | 2023 | 4 | | | 2024 | 7 | | Ohio | 2022 | 0 | | | 2023 | 0 | | | 2024 | 2 | | Oklahoma | 2022 | 0 | | | 2023 | 0 | | | 2024 | 2 |
| State1 | Year | Number of Transfers |
|---|---|---|
| South Carolina | 2022 | 2 |
| 2023 | 2 | |
| 2024 | 0 | |
| Tennessee | 2022 | 0 |
| 2023 | 3 | |
| 2024 | 2 | |
| Texas | 2022 | 7 |
| 2023 | 0 | |
| 2024 | 10 | |
| Washington | 2022 | 0 |
| 2023 | 0 | |
| 2024 | 1 | |
| Wisconsin | 2022 | 0 |
| 2023 | 0 | |
| 2024 | 6 | |
| Virginia | 2022 | 0 |
| 2023 | 1 | |
| 2024 | 0 | |
| Total |
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, a '0' in the 'Non-Renewals' column within the Item 20 tables indicates that, for the specified state and year, there were no franchise agreements that were not renewed. This means that all franchisees who had the option to renew their agreements chose to do so, or that no agreements came up for renewal during that period.
For a prospective Stretch Zone franchisee, this is a positive sign. It suggests that existing franchisees are generally satisfied with their investment and the performance of their businesses, as they are choosing to continue their relationship with the franchisor. This can be an important factor in the decision-making process, as it provides some assurance that the franchise model is sustainable and that franchisees are finding value in the brand and its support systems.
However, it is important to consider this information in conjunction with other data presented in Item 20, such as terminations and transfers. A low non-renewal rate does not necessarily guarantee success, and prospective franchisees should conduct thorough due diligence to understand the reasons behind these numbers and the overall health of the franchise system. They should also speak with current and former franchisees to gain a more complete picture of the franchise experience.