According to Stretch Zone's 2025 Franchise Disclosure Document, the Development Fee is deferred until the first franchise under the Area Development Agreement opens. This means that a prospective franchisee who signs an Area Development Agreement with Stretch Zone does not have to pay the Development Fee upfront. Instead, the payment is postponed until the first Stretch Zone franchise location under the agreement begins operations. This can significantly reduce the initial financial burden on the franchisee, allowing them to allocate resources to other startup costs such as location build-out, equipment, and initial marketing efforts.

This deferral of the Development Fee could be advantageous for franchisees as it aligns the payment with the commencement of business operations and revenue generation. It also demonstrates Stretch Zone's confidence in its business model and its commitment to supporting franchisees in the initial stages of development. However, it is important to note that the Development Fee is still fully earned by Stretch Zone upon signing the Area Development Agreement, meaning that the franchisee is obligated to pay it once the first location opens.

While the Development Fee is deferred, prospective franchisees should carefully review the terms and conditions of the Area Development Agreement to understand their obligations and the timeline for opening the first franchise location. They should also consider the financial implications of the deferred payment and ensure they have sufficient capital to cover the Development Fee once it becomes due. Understanding these details is crucial for making an informed decision about investing in a Stretch Zone franchise and managing their financial resources effectively.