What was the UAR expense for Stretch Zone in 2023?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| $ 8,159,875 |
|---|
Statements of Operations
Year Ended December 31,
| December 31, | |||
|---|---|---|---|
| 2023 | 2022 | ||
| Revenues: | |||
| Royalties | $ 6,249,900 | $ 4,723,154 | |
| Franchise and ADA fees | 1,563,002 | 911,918 | |
| Media fund | 2,063,598 | 1,497,709 | |
| Equipment | 339,535 | 364,423 | |
| Training | 436,917 | 352,917 | |
| Technology | 1,098,504 | 611,550 | |
| Miscellaneous | 140,480 | 128,862 | |
| Total revenues | 11,891,936 | 8,590,533 | |
| Operating expenses | 9,172,888 | 7,690,543 | |
| Other expense: | |||
| UAR expense | (12,466,993) | (17,897,523) | |
| Interest expense | (3,9 |
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 UAR (Unit Appreciation Rights) expense for the company in 2023 was approximately $12,466,993. This figure is listed as an 'other expense' in the company's financial statements. In 2022, the UAR expense was higher, totaling $17,897,523.
This expense relates to the change in control of Stretch Zone on March 31, 2023, when Stretch Zone Holdings, LLC sold the company to SZ PEP Holdco, LLC. This transaction triggered the payment of unit appreciation rights, as detailed in Note J of the financial statements.
For a prospective franchisee, this historical UAR expense is unlikely to directly impact their operations. However, it provides insight into the financial transactions and changes in ownership that Stretch Zone has undergone. Understanding these past financial events can help a franchisee assess the stability and potential future direction of the company.