What is the timing of insurance payments for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Column 1 | Column 2 | Column 3 | Column 4 | Column 5 |
|---|---|---|---|---|
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment Is To Be Made |
| Insurance12 | $1,750 to $4,000 | Lump Sum | Before beginning business | Designated Insurance Agent |
- 12 Insurance.
As discussed in ITEM 8, we require that you carry certain insurance specified in the Operations Manual.
The method and timing of payments is between you and your insurer.
We require you to use R.V. Johnson Insurance as your Insurance Agent.
Because the selection of the carrier, size of the Premises, location of the Premises, value of the leasehold improvements, amount of inventory, amount of wages and other related conditions vary considerably, it is difficult to estimate the ultimate cost for any given franchisee.
Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the specific payment schedule for insurance is determined between the franchisee and their insurer. However, Stretch Zone requires franchisees to secure insurance before beginning business operations. The FDD indicates that the estimated cost for insurance ranges from $1,750 to $4,000, payable as a lump sum to the designated insurance agent.
Stretch Zone mandates that franchisees use R.V. Johnson Insurance as their insurance agent. The actual insurance costs can vary significantly based on factors such as the insurance carrier selected, the size and location of the premises, the value of leasehold improvements, the amount of inventory, and wage expenses. These factors make it difficult to provide a precise cost estimate applicable to all franchisees.
Prospective Stretch Zone franchisees should contact R.V. Johnson Insurance to obtain a detailed quote based on their specific circumstances. Understanding these costs and payment terms is crucial for budgeting and financial planning before opening a Stretch Zone franchise. The FDD also advises franchisees to review the Operations Manual for specific insurance requirements.