According to Stretch Zone's 2025 Franchise Disclosure Document, the security interest covers the franchisee's future indebtedness. The security interest obtained by Stretch Zone secures the payment and performance of all debts, obligations, and liabilities of any kind that the franchisee owes to Stretch Zone. This includes any debts that currently exist or that may arise later. These obligations arise directly between the franchisee and Stretch Zone, including the franchisee's obligations under the Area Development Agreement and Franchise Agreement.

This means that if a franchisee takes on additional debt or liabilities to Stretch Zone at any point, those obligations are also secured by the initial security interest. This could include, for example, additional loans, unpaid franchise fees, or other financial obligations incurred during the term of the franchise agreement. The scope of the security interest is broad, covering all types of indebtedness and obligations.

For a prospective Stretch Zone franchisee, this implies that the security interest they grant to Stretch Zone at the beginning of the franchise relationship will extend to any future financial obligations they incur to the franchisor. Therefore, it is crucial for franchisees to understand the full extent of their financial obligations and liabilities under the franchise agreement and any related agreements. Franchisees should carefully consider the potential impact of this security interest on their assets and financial situation before entering into the franchise agreement.