What revenues does Stretch Zone earn from franchise stores owned by its parent company?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ets represent commissions paid to an agent of the Company for franchise agreements. There was no contract asset as of December 31, 2021.
NOTE E - RELATED PARTY TRANSACTIONS
The Company earns revenues for royalties, training, equipment sales, and other franchise-related transactions from certain franchise stores that are owned by the Parent. Revenues for the years ended December 31, 2023 and 2022 include $89,260 and $81,323, respectively, from these stores. Total payments received from these franchises during the years ended December 31, 2023 and 2022 totaled $91,858 and $69,366, respectively, and $10,
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 earns revenue from franchise stores owned by its parent company. Specifically, revenues for the years ended December 31, 2023, and 2022 include $89,260 and $81,323, respectively, from these stores.
In addition to revenues, Stretch Zone also receives payments from these parent-company-owned franchises. Total payments received from these franchises during the years ended December 31, 2023, and 2022 totaled $91,858 and $69,366, respectively.
Furthermore, there are receivables from these franchises. As of December 31, 2023, and 2022, $10,558 and $13,156 was receivable from these franchises, respectively, and is included in due from related parties on the accompanying balance sheets. This indicates that while payments are made, there's often an outstanding balance at the end of the fiscal year.