factual

What is the range for prepaid rent and security deposit expenses a Stretch Zone franchisee can expect?

Stretch_Zone Franchise · 2025 FDD

Answer from 2025 FDD Document

ting power as Franchised Units on all matters, including fees. The obligation of each Unit to contribute to an advertising cooperative (if formed in the applicable DMA) will not exceed 2% of monthly Gross Revenues. We will credit these contributions against your obligation for Local Advertising.

ITEM -7 ESTIMATED INITIAL INVESTMENT

YOUR ESTIMATED INITIAL INVESTMENT – SINGLE UNIT FRANCHISE

Column 1 Column 2 Column 3 Column 4 Column 5

Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)

What This Means (2025 FDD)

According to Stretch Zone's 2025 Franchise Disclosure Document, the estimated cost for prepaid rent and security deposits ranges from $750 to $15,000. This expense is due before the business begins operations and is paid as per the agreement with the landlord. The FDD notes that Stretch Zone expects franchisees will lease rather than own the real estate for their location. They estimate the typical size of a Stretch Zone premises to be between 1,000 to 1,500 square feet.

The franchisor assumes that landlords will require first and last months' rent, plus a security deposit equal to one month's rent. The document also notes that rent may be subject to tax, such as the 5.5% state sales tax on commercial rent in Florida, and possibly a county tax, which the tenant typically pays. Lease costs can vary significantly based on factors like the size of the leased space, cost per square foot, percentage rent (if any), the sales figure at which percentage rent applies, common area maintenance costs, and merchant's association costs.

These variances are influenced by the location, lease length, property age, local market conditions, premises size, and the bargaining power of the developer or property management company. Developers often discuss rent as a percentage of gross receipts, expressed as a cost per square foot. Prospective Stretch Zone franchisees should carefully consider these factors and negotiate lease terms that align with their financial projections and business plan. Understanding these potential costs and variations is crucial for budgeting and managing the initial investment required to start a Stretch Zone franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.