What is the range of the Development Fee for a Stretch Zone franchise, and how does it vary based on the number of units?
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 ranges from $119,000 to $267,750, depending on the number of units a developer commits to. Specifically, the Development Fee for two units is $119,000, while the fee for six units is $267,750. This fee is paid in a lump sum.
This fee is due when Stretch Zone has fulfilled its pre-opening obligations to the franchisee and the first franchise business is open. This means a prospective franchisee will not have to pay the development fee until Stretch Zone has met its obligations and the first location is operational.
It is important to note that this fee structure applies to Area Development Agreements, where a developer commits to opening multiple Stretch Zone locations. The Development Fee compensates Stretch Zone for granting the developer exclusive rights to develop a specific territory. The more units a developer commits to, the higher the Development Fee, reflecting the increased value of the larger territory and the potential for greater revenue generation for both the developer and Stretch Zone.