What is the range of the development fee for a Stretch Zone Area Development Agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment | When Due | Column 5 |
|---|---|---|---|---|
| To Whom | ||||
| Payment | ||||
| Is To | ||||
| Be Made | ||||
| Development Fee1 | $119,000 (2 Units) to $267,750 (6 Units) | Lump Sum | When we have fulfilled our pre- opening obligations to you and your 1st Franchise Business is open for business |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 91–99)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the development fee for an Area Development Agreement ranges from $119,000 to $267,750. This fee covers the rights to develop between 2 and 6 units. The payment of this fee is deferred until Stretch Zone has fulfilled its pre-opening obligations and the franchisee's first Stretch Zone business is open.
For a prospective franchisee, this means that the initial financial outlay for the development fee is not due upfront. Instead, it is deferred until certain milestones are achieved, specifically when Stretch Zone has met its obligations and the first franchise location is operational. This arrangement can ease the initial financial burden on the franchisee, allowing them to allocate resources to other startup costs.
It is important to note that the development fee varies depending on the number of units the franchisee commits to developing under the Area Development Agreement. The minimum fee of $119,000 is for two units, while the maximum of $267,750 is for six units. This tiered structure allows franchisees to scale their investment according to their development plans and capabilities. Franchisees should carefully consider the number of units they plan to develop when negotiating the Area Development Agreement to ensure they are committing to a manageable and financially viable expansion plan.