According to Stretch Zone's 2025 Franchise Disclosure Document, the initial Advertising Contribution is deferred under specific conditions. The document states that this contribution is not payable until Stretch Zone has fulfilled all its pre-opening obligations to the franchisee as outlined in the Franchise Agreement, and the franchisee's business is open. This deferral provides a financial benefit to new franchisees by postponing the advertising fee until the business is ready to operate.

This deferral is tied to Stretch Zone's performance in meeting its pre-opening responsibilities. These obligations likely include site selection assistance, training, providing operations manuals, and other support activities necessary to prepare the franchisee for opening. By linking the advertising contribution to these milestones, Stretch Zone incentivizes itself to provide timely and effective support to its franchisees.

For a prospective Stretch Zone franchisee, this deferral means that they will not have to pay the initial advertising contribution upfront, which can help manage initial startup costs. It also ensures that the franchisee only pays the advertising fee once they are actually in a position to benefit from advertising and marketing efforts, i.e., when their studio is open and ready to serve clients. Franchisees should confirm what specific actions constitute Stretch Zone's "pre-opening obligations" to ensure clarity on when the advertising contribution becomes due.