Is there any officer of Stretch Zone who has an ownership interest in any third-party supplier?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Our Chief Information Officer, Keith Trawick, holds a majority interest in one of our software licensors, KnetK LLC; otherwise, no officer of ours has an ownership interest in any third-party supplier.
Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, one officer has an ownership interest in a third-party supplier. Specifically, Stretch Zone's Chief Information Officer, Keith Trawick, holds a majority interest in KnetK LLC, which is one of Stretch Zone's software licensors. Otherwise, no other officer of Stretch Zone has an ownership interest in any third-party supplier.
This arrangement means that Stretch Zone franchisees are required to sublicense software from a company in which the franchisor's Chief Information Officer has a vested interest. This could create a conflict of interest, as the officer may be incentivized to favor KnetK LLC over other software providers, even if those providers offer better products or services.
Prospective franchisees should consider this relationship when evaluating the Stretch Zone franchise opportunity. It would be prudent to inquire about the terms of the licensing agreement between Stretch Zone and KnetK LLC, and to assess whether the software provided by KnetK LLC is competitively priced and meets the needs of the franchise. Franchisees may also want to understand how Stretch Zone manages this potential conflict of interest to ensure fair treatment and access to the best possible resources.