Under what conditions is the Initial Franchise Fee for a Stretch Zone franchise deferred?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
our pre-opening obligations to you under a Franchise Agreement for the 1st Franchise Business and you are open for business.
IN WITNESS WHEREOF, the parties have signed and delivered this Addendum on the day and year first written.
| FRANCHISOR: | DEVELOPER: | |
|---|---|---|
| STRETCH ZONE FRANCHISING LLC, a | (IF ENTITY): | |
| Florida limited liability company | ||
| By: | [Name] | |
| Tony Zaccario, CEO and President | By: | |
| Date:, 20 | Name: Title: Date:, 20 (IF INDIVIDUALS): [Signature] [Print Name] Date:, 20 | |
| [Signature] [Prin |
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the deferral of the initial franchise fee is specifically applicable to franchisees in Illinois. The standard initial franchise fee is $59,500. However, this fee is deferred until Stretch Zone has fulfilled all its pre-opening obligations to the franchisee, and the franchisee has opened their business.
This deferral is a result of a requirement imposed by the Illinois Attorney General's Office due to Stretch Zone's financial condition. This means that franchisees in Illinois do not have to pay the initial franchise fee upfront, which can be a significant benefit, especially for new business owners who may have limited capital.
For prospective Stretch Zone franchisees outside of Illinois, the standard initial franchise fee payment terms would apply, requiring payment before the business opens. It is important for potential franchisees to understand the specific regulations and financial terms applicable to their state, as these can vary significantly. Franchisees should consult the FDD and seek legal counsel to fully understand their obligations and rights.