What was the reported Franchise Fee income for Stretch Zone from January to March 25?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Jan - Mar 25 | |
|---|---|
| Ordinary Income/Expense | |
| Income Billable Expense Income Club Ready - Royalties | -1,254.07 1,416,631.78 |
| Franchise Fee | 445,863.26 |
| Media Fund | 472,464.24 |
| Rebate Income | 840.00 |
| SCORE Audit Program | 47,125.00 |
| Store FAD Revenue | 73,553.00 |
| Technology Fee | 407,380.00 |
| Training SZ | 131,132.07 |
| Total Income | 2,993,735.28 |
| Cost of Goods Sold | 32,019.55 |
| Gross Profit | 2,961,715.73 |
| Expense | |
| (A) Other G&A | 1,203,375.32 |
| Advertising & Marketing | 489,239.30 |
| Bank Charges | 14,389.22 |
| Commission - MIA | 1,618.74 |
| Depreciation Expense | 490.37 |
| Dues & Subscriptions | 15,989.05 |
| FAC Expenses | 348.66 |
| Insurance | 26,035.04 |
| Interest Expense | 1,092,793.88 |
| Legal & Professional Fees | 87,896.24 |
| Meals and Entertainment | 1,948.18 |
| Office Equipment | 6,643.51 |
| Office Expenses | 7,328.32 |
| Office Supplies | 8,712.02 |
| Other General and Admin Expense | -16,568.99 |
| Payroll Expenses | 24,626.14 |
| Payroll Service | 3,671.34 |
| Payroll Taxes | 75,603.85 |
| PEG Expenses | 27,967.68 |
| Real Estate Discovery | 7,500.00 |
| Reimbursable Zee Expense | 310,160.64 |
| Rent or Lease | 111,828.59 |
| Repair & Maintenance | 674.93 |
| Shipping, Delivery and Postage | 3,495.98 |
| Taxes & Licenses | 2,225.00 |
| Travel | 1,362.25 |
| Uncategorized Expense | 1,937.70 |
| Utilities | 2,950.79 |
| Website | 79,917.85 |
| Total Expense | 3,594,161.60 |
| Net Ordinary Income | -632,445.87 |
| Net Income | -632,445.87 |
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the company's Franchise Fee income from January through March 2025 was reported as $445,863.26. This figure represents the income Stretch Zone Franchising, LLC received specifically from franchise fees during this three-month period. Franchise fees are typically upfront payments made by new franchisees to the franchisor for the right to operate under the Stretch Zone brand.
This income is a significant component of Stretch Zone's revenue stream, but it is important to consider it in the context of the company's overall financial performance. The provided profit and loss statement also includes other income sources such as royalties, media fund contributions, and technology fees, as well as various expenses. The franchise fee income contributes to the total income of $2,993,735.28 for the period.
For a prospective franchisee, understanding the franchisor's revenue sources and overall financial health is crucial. While franchise fee income indicates successful franchise sales, it's essential to review the company's expenses and net income to assess its long-term viability. In this case, Stretch Zone reported a net ordinary income loss of $632,445.87 for the same period, indicating that expenses exceeded income. This information is vital for potential franchisees to evaluate the financial stability of Stretch Zone before investing in a franchise.