What are the technology solutions that Stretch Zone provides to franchisees, beyond the initial technology implementation included in the franchise agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
[11] Revenue recognition: (continued)
Technology Fees:
The Company provides various technology solutions to franchisees in addition to the initial Technology implementation included in the franchise agreement, the Company provides ongoing support to the franchisees. Revenues for these services are recognized when provided.
Disaggregated revenues:
For the years ended December 31, 2024 and 2023, respectively, $10,510,547 and $9,876,500 of revenues represent performance obligations that were satisfied at a point in time, $2
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, Stretch Zone provides various technology solutions to franchisees in addition to the initial technology implementation that is included in the franchise agreement. Stretch Zone also provides ongoing support to its franchisees. Revenues for these services are recognized when they are provided to the franchisees.
For the years ending December 31, 2024 and 2023, $10,510,547 and $9,876,500 of revenues represent performance obligations that were satisfied at a point in time, respectively. For the same periods, $2,319,603 and $2,015,436 of revenues represent performance obligations that were satisfied over time, respectively.
This means that Stretch Zone franchisees can expect to receive continued technology support and solutions throughout the term of their franchise agreement, beyond what is initially provided. Franchisees should inquire about the specific types of technology solutions offered, the costs associated with these solutions, and the level of support provided by Stretch Zone to ensure they understand the ongoing technology requirements and expenses.