Under the Stretch Zone franchise agreement, what currency must all fees be paid in?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 3.2 PAYMENT SCHEDULE
Royalty Fees, Technology Fees, training fees, Advertising Contributions and Fines are automatically billed and paid when are due by processing through our POS system. If we do not specify a due date, these amounts are due upon receipt of our invoice. Any payment or report not actually received by us on or before the due date is overdue. All payments will be processed through our POS system.
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 the 2025 Stretch Zone FDD, all payments, including Royalty Fees, Technology Fees, training fees, Advertising Contributions and Fines, will be processed through the POS system. These fees are automatically billed and paid when due. If a due date is not specified, the amounts are due upon receipt of the invoice. Any payment or report not received by Stretch Zone on or before the due date is considered overdue.
This means that Stretch Zone franchisees must ensure their POS system is properly set up and funded to handle these automatic payments. Franchisees should also carefully track invoices to ensure timely payment of any fees not automatically deducted. Failure to make timely payments can result in penalties or other actions by Stretch Zone.
While the FDD excerpt specifies the method of payment, it does not explicitly state the currency in which these payments must be made. It is highly probable that the currency is U.S. dollars, given that Stretch Zone is a U.S.-based franchise. However, the FDD does not provide explicit confirmation.