What is the relationship between the Initial Franchise Fee for Stretch Zone in Item 5 and the franchisee's
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- Factor 4
- Predictive Index
- Canva
- Perkville
- Microsoft Office 365
- Stretch Zone University (our learning management software)
Cost of the Computer System. The cost of the Computer System ranges from $1,850 to $2,699.
Ongoing Maintenance, Repairs, Upgrades or Updates. We are not obligated to provide you with ongoing maintenance, repairs, upgrades or updates. You must make periodic upgrades and updates to the Computer System's software that we require for your Franchise Business. There are no contractual limitations on the frequency and cost of this requirement. The computer manufacturer or local dealers may offer to you a hardware maintenance agreement for the Computer System. We do not know the cost of any hardware maintenance agreement. Club Ready offers to you limited software support as part of its license fee. You may incur additional charges for services outside the scope of this software support agreement. The annual costs of any optional or required maintenance, upgrade, upgrading, or support contracts for the Computer System is estimated to be $200.
Type of Data Generated and Stored. The Computer System's principal functions are to provide you with lead management, new customer additions, redemption of programs purchased, payroll, scheduling and, reporting and billing. The Computer System will collect employee and
customer information including name, address, e-mail, phone number, billing information, program terms and customer usage.
Our Independent Access to Your Data. We will have independent electronic access via the Internet to the information that the Computer System generates. There are no contractual limitations on our right to access this information about your Franchise Business. You agree that we have the right to retrieve all data and information from your Computer System, as we consider necessary.
OPERATIONS MANUAL
After you have signed your Franchise Agreement, we will loan you a copy of our Operations Manual. The Table of Contents of the Operations Manual, as of December 31, 2024 is included in Exhibit O. The Operations Manual totals 128 pages.
FRANCHISE AGREEMENT
TRAINING PROGRAM
There are six distinct mandatory training programs. You must use our learning management software, Stretch Zone University, to book these training programs.
- Franchisee Training Program: We provide the Franchisee Training Program before opening at our training facility at our corporate headquarters in Fort Lauderdale, Florida. This is to be completed by you (if you are one or more individuals) or Franchise Owners (if you are a Business Entity) within 30 days of signing the Franchise Agreement. The Initial Franchise Fee covers the Franchisee Training Program for the individuals identified above.
- Regional Manager Training Program: This is to be completed by any individual who will act as your Regional Manager. (Generally, we anticipate that you or your Designated Representative will act as your Regional Manager and attend this Program in connection with the Franchisee Training Program before opening at our training facility in Fort Lauderdale. You may, however, elect to hire another individual to act as your Regional Manager.) Regional Managers in training are required to complete the mandatory pre-requisites of both Stretch Practitioner Training and Sales Associate Training. We provide the Regional Manager Training Program (which includes the Stretch Practitioner Training Program described below) at our training facility at our corporate headquarters in Fort Lauderdale, Florida. If you or your initial Designated Representative will act as your Regional Manager and will attend this Program in connection with the Franchisee Training Program, the Initial Franchise Fee covers the Regional Manager Training Program for you or your Designated Representative. For any other individual attending the Regional Manager Training Program (including any replacement Designated Representative who will serve as your Regional Manager), you must pay us a training fee of $515 per person for this training.
- Initial On-Site Training Program: We provide the Initial On-Site Training Program during the week in which the Franchise Business opens. This training will be completed by your Sales Associates and you (if you are one or more individuals) or Franchise Owners (if you are a Business Entity). Upon completion, you will sign a Certificate of Completion, which is included in the Manual. See also the description
- of the Stretch Practitioner Training Program, which is conducted for your initial practitioners during the Initial On-Site Training Program, below. The Initial Franchise Fee covers the Initial On-Site Training Program, except as provided in the description of the Stretch Practitioner Training Program below.
- Stretch Practitioner Training Program: This will be completed by each employee who will provide stretch services at the Franchise Business and your Regional Manager. We provide a portion of the Stretch Practitioner Training Program virtually for your initial practitioners. Practitioners will attend this virtual training course via Stretch Zone University as a prerequisite. Contingent on completing and passing the virtual course, a two-day in-person Stretch Training is attended. During the in-person Stretch Training, practitioners must pass two practical exams to be deemed a certified stretch practitioner. The Initial Franchise Fee covers the Stretch Practitioner Training Program for up to 12 of your initial practitioner candidates attending as part of the Initial On-Site Training Program. You otherwise must pay us a training fee of $310 per person for this training. As stated in Item 6, we also will provide, at your request, the Stretch Practitioner Training Program at your Franchise Business if you have a minimum of four practitioners who will attend. The training fee for this on-site Stretch Practitioner Training is $1,240.
- Sales Associate Training Program: This is to be completed by each employee who will be a Sales Associate at the Franchise Business and your Regional Manager. We provide the Sales Associate Training Program for your initial Sales Associates. Sales Associates will attend this virtual training course via Stretch Zone University prior to the opening. The Grand Opening Fee covers the Sales Associate Training Program for up to five of your initial Sales Associates. Thereafter, you must pay us a training fee of $206 per person for this training.
- Virtual Front Desk Training: This is to be completed by all front desk employees and is provided virtually via Stretch Zone University. You must pay us a training fee of $100 for each person for this training.
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the initial franchise fee is related to the franchisee's training and development rights. The initial franchise fee covers the Franchisee Training Program, Regional Manager Training Program, and Initial On-Site Training Program for a specified number of individuals. For the Stretch Practitioner Training Program, the initial franchise fee covers training for up to 12 initial practitioner candidates as part of the Initial On-Site Training Program. If additional training is needed, the franchisee must pay $310 per person. For the Sales Associate Training Program, the Grand Opening Fee covers training for up to five initial Sales Associates, with additional training costing $206 per person. Virtual Front Desk Training costs $100 per person.
For franchisees who obtain Area Development Rights, the initial franchise fee is factored into the Development Fee. The Development Fee is based on the number of Stretch Zone franchises the franchisee commits to developing. For example, to develop 2 Franchise Businesses, the Development Fee is $119,000, representing the Initial Franchise Fees for both Franchise Businesses. For developing 3 franchises, the fee is $148,750, covering the initial fees for the first two franchises and 50% of the fee for the third. The franchisee pays the remaining 50% of the initial franchise fee when signing the Franchise Agreement for the third franchise. This structure continues for development of up to 7 or more franchises, with the Development Fee covering a mix of 100% and 50% of the initial franchise fees, and the balance due upon signing each franchise agreement.
In Maryland, the initial fees are deferred until Stretch Zone has performed all pre-opening obligations and the franchisee is open for business. The initial franchise fee constitutes part of Stretch Zone's general operating funds and will be used as such at their discretion.