According to the 2025 Stretch Zone Franchise Disclosure Document, the deferral of initial fees for franchises in Illinois is due to the franchisor's financial condition. The Illinois Attorney General's Office imposed this requirement. This means that a new Stretch Zone franchisee in Illinois will not have to pay the initial franchise fee or development fee until Stretch Zone has fulfilled all of its pre-opening obligations as outlined in the Franchise Agreement and the franchisee is open for business.

This deferral provides a significant benefit to franchisees in Illinois, as it reduces the upfront financial burden of starting the franchise. Instead of paying the initial fees immediately, franchisees can use those funds for other essential startup costs, such as securing a location, purchasing equipment, and hiring staff. This can make it easier for individuals with limited capital to become Stretch Zone franchisees.

It's important to note that while the initial fees are deferred, they are not waived. Franchisees will still be responsible for paying these fees once Stretch Zone has met its pre-opening obligations and the franchise is operational. Prospective franchisees should carefully review the Franchise Agreement to understand what constitutes Stretch Zone's pre-opening obligations and when the initial fees become due. Additionally, franchisees should confirm with Stretch Zone what specific financial information led to the Attorney General's decision.