According to Stretch Zone's 2025 Franchise Disclosure Document, the security interest covers a broad range of obligations. The security interest secures the payment and performance of all indebtedness, obligations, and liabilities of any kind that the franchisee owes to Stretch Zone. This includes obligations that currently exist or may arise in the future.

Specifically, the security interest applies to obligations arising directly between the franchisee and Stretch Zone. This encompasses the franchisee's obligations under both the Area Development Agreement and the Franchise Agreement. These agreements collectively define the "Obligations" that are secured by the security interest.

For a prospective Stretch Zone franchisee, this means that Stretch Zone has a security interest in their assets to ensure the franchisee fulfills all financial and performance obligations under the agreements. This is a significant consideration, as it gives Stretch Zone a legal claim against the franchisee's assets if the franchisee fails to meet their contractual duties.