What was the value of Stretch Zone's 'Furniture inventory' as of December 31, 2022?

According to Stretch Zone's 2025 Franchise Disclosure Document, the value of the company's furniture inventory as of December 31, 2022, was $51,091. This figure represents the cost of furniture that Stretch Zone had in its inventory at that time, calculated using the first-in, first-out (FIFO) method.

For a prospective Stretch Zone franchisee, this information provides insight into the company's asset management and inventory valuation practices. The furniture inventory likely includes items used in the corporate-owned Stretch Zone locations, as the company also sells franchises and provides support to its health clubs. The FDD notes that Stretch Zone periodically assesses its inventory for obsolescence or slow-moving items, and any necessary provisions to reduce the inventory to its net realizable value are recorded as operating expenses.

The fact that no provision expense was recorded for 2022 suggests that Stretch Zone did not have significant issues with obsolete or slow-moving furniture inventory during that year. This could indicate effective inventory management practices. Franchisees may want to inquire about the typical furniture and equipment needs for a new Stretch Zone location and how Stretch Zone assists with sourcing and managing these assets.