Does Stretch Zone have any single customer accounting for more than 10% of its revenues or accounts receivable?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The credit risk associated with trade receivables is mitigated due to a large number of customers, generally the Company's franchisees, and their broad dispersion over many different geographic areas. For the years ended December 31, 2024 and 2023, there was no concentration above 10% of revenues or accounts receivable.
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 states that for the years ending December 31, 2024, and 2023, no single customer accounted for more than 10% of revenues or accounts receivable. This indicates that Stretch Zone's revenue stream is not overly dependent on any one particular customer.
This lack of concentration is attributed to Stretch Zone's customer base, which primarily consists of franchisees spread across various geographic locations. The broad dispersion of franchisees mitigates the credit risk associated with trade receivables, as the financial stability of the company is not tied to the success of a single franchisee or a small group of franchisees.
For a prospective franchisee, this information suggests a degree of stability in Stretch Zone's financial operations. The reliance on a diverse customer base, rather than a single major client, can reduce the risk of significant revenue fluctuations due to the loss of a key customer. This can be a positive factor for franchisees considering investing in a Stretch Zone franchise.