What was the total monthly rent for the Stretch Zone training facility when it commenced on May 1, 2021?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Senior Facility Agreement and Waiver. See Note L Subsequent Events.
NOTE H - LEASE COMMITMENTS
In March 2021, the Company commenced a non-cancelable operating lease for office space and a training facility for ninety-one months terminating in 2028. The Company is required to pay a proportionate share of the landlord's operating expenses. Rent for the facility commenced on May 1, 2021 for a total of $9,873 a month with stated annual increases of approximately three percent, with rent concessions of $6,037 a month for the first
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 rent for the training facility commenced on May 1, 2021, totaling $9,873 per month. This lease, initiated in March 2021, is a non-cancelable operating lease spanning 91 months and terminating in 2028. The monthly rent is subject to annual increases of approximately three percent.
However, Stretch Zone received rent concessions during the initial period of the lease. For the first twelve months, the concession was $6,037 per month. This was followed by a concession of $6,218 for the thirteenth month and $1,133 per month for an additional thirteen months.
For a prospective franchisee, this information highlights the importance of understanding the lease terms for any properties leased by Stretch Zone. While the initial rent provides a baseline, the presence of rent increases and concessions can significantly impact the overall cost of the lease over time. Franchisees should carefully review all lease agreements and factor in these variables when projecting their operating expenses.