According to the 2025 Stretch Zone Franchise Disclosure Document, the franchisee's obligation to pay the initial franchise fee is directly tied to Stretch Zone fulfilling its pre-opening obligations. Specifically, the initial franchise fee is deferred and not payable until Stretch Zone has complied with all of its pre-opening obligations to the franchisee under the Franchise Agreement, and the franchisee is open for business. This means a prospective Stretch Zone franchisee will not be required to pay the initial franchise fee until these conditions are met. This deferral also applies to the Development Fee for franchisees entering into an Area Development Agreement.

This arrangement protects the franchisee by ensuring that Stretch Zone fulfills its responsibilities in setting up the franchise before requiring payment of the initial franchise fee. Pre-opening obligations typically include assistance with site selection, training, and providing necessary resources to get the business operational. By deferring the fee, Stretch Zone shares some of the initial risk with the franchisee, aligning their interests in a successful launch.

However, it is important for a prospective Stretch Zone franchisee to understand exactly what constitutes Stretch Zone's pre-opening obligations as defined in the Franchise Agreement. The franchisee should also confirm the timeline for these obligations and what recourse they have if Stretch Zone fails to meet them. While the deferral of the initial franchise fee provides some financial security, a clear understanding of the obligations and timelines is crucial for a smooth franchise launch.