In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Stretch Zone franchise, based on Item 7 of the company’s 2024 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Stretch Zone franchise, based on Items 5 and 6 of the company’s 2024 FDD
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Stretch Zone outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD
Section IV – News updates on the Stretch Zone franchise opportunity
Section V – Presentation and analysis of Stretch Zone’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:
- 2023 average, median, highest, and lowest gross sales for the 235 franchised Stretch Zone units that have been operating for 12 or more months as of December 31, 2023, by quartile and overall
Section VI – Key ratios, comparables, computations, and analyses for the Stretch Zone franchise opportunity (exclusive content for Platinum subscribers)
Section I – Stretch Zone Franchise Costs
- Stretch Zone franchise costs, based on Item 7 of the company’s 2024 FDD:
- Initial Franchise Fee: $59,500
- Prepaid Rent and Security Deposit: $750 to $15,000
- Leasehold Improvements: $3,000 to $35,000
- Architect’s and Engineer’s Fees: $0 to $3,500
- Furniture, Fixtures, and Furnishings: $5,475 to $14,000
- Computer System: $1,850 to $2,699
- Outdoor Signage: $2,000 to $11,000
- Indoor Signage and Graphics: $5,500 to $8,750
- Utility Deposits: $200 to $800
- Office and Store Supplies: $1,055 to $2,000
- Stretching Tables and Accessories: $23,400 to $37,400
- Insurance: $1,750 to $2,500
- Licenses and Permits: $200 to $3,000
- Attorney’s Fees: $1,000 to $3,000
- Accountant’s Fee: $200 to $2,500
- Travel, Lodging, Meals, Etc. During Franchisee Training and Manager Training Programs: $2,500 to $5,000
- Initial Advertising Contribution to Media Fund: $500
- Grand Opening Fee: $14,950
- Additional Funds (3 months): $10,000 to $20,000
- Total Estimated Stretch Zone Franchise Costs: $133,830 to $241,099
Section II – Stretch Zone’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Stretch Zone’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:
- Franchise Fee: $59,500
- Royalty Fee: 6% of Gross Revenues. For Gross Revenues accruing on or after January 1, 2025 through the balance of the initial term of the Franchise Agreement, 7% of Gross Revenues. Beginning on the first full calendar month, however, you must pay a minimum monthly Royalty Fee of $900.
- Advertising Contributions to the Media Fund: initial contribution of $500 and 2% of monthly Gross Revenues thereafter
- Advertising Contributions to an Advertising Cooperative: not to exceed 2% of monthly Gross Revenues, which counts towards Local Advertising requirement
Section III – Number of Franchised and Company-Owned Stretch Zone Outlets
Franchised
2021
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 153
- Net Change: +46
2022
- Outlets at the Start of the Year: 153
- Outlets at the End of the Year: 240
- Net Change: +87
2023
- Outlets at the Start of the Year: 240
- Outlets at the End of the Year: 330
- Net Change: +90
Company-Owned
2021
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 3
- Net Change: -2
2022
- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 3
- Net Change: 0
2023
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 3
- Outlets at the End of the Year: 0
- Net Change: -3
Section IV – News Updates on the Stretch Zone Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Stretch Zone Franchise (Item 19, 2024 FDD)
- This Item 19 presents information about the financial performance during Stretch Zone’s fiscal year ended December 31, 2023 (“Fiscal Year 2023”) of certain Franchise Businesses.
Average Gross Revenues by Quartile for Franchise Businesses for Fiscal Year 2023
Top Quartile
- Average Gross Revenues: $622,911
- Median Gross Revenues: $596,189
- Lowest Gross Revenues: $490,704
- Highest Gross Revenues: $968,596
2nd Quartile
- Average Gross Revenues: $414,162
- Median Gross Revenues: $409,811
- Lowest Gross Revenues: $353,404
- Highest Gross Revenues: $490,289
3rd Quartile
- Average Gross Revenues: $311,217
- Median Gross Revenues: $310,553
- Lowest Gross Revenues: $269,660
- Highest Gross Revenues: $352,717
Bottom Quartile
- Average Gross Revenues: $221,907
- Median Gross Revenues: $231,312
- Lowest Gross Revenues: $126,435
- Highest Gross Revenues: $268,048
Total
- Average Gross Revenues: $392,549
- Median Gross Revenues: $386,966
- Lowest Gross Revenues: $126,435
- Highest Gross Revenues: $968,596
- The following are the 6 elements comprising a “material” basis for the historical financial performance representations:
- Group Measured – The group measured includes all Franchised Units that have been operating for 12 or more months, out of a total of 330 Franchised Units there were operational as of December 31, 2023.
January 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
February 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
March 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
April 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
May 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
June 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
July 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
August 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
September 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
October 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
November 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
December 2023
- Franchised Outlets in System: 243
- Franchised Outlets Represented: 235
- Time Period Measured – The time period measured is calendar year 2023.
- Number of Units Measured – The number of units measured is 243.
- Number of Units Reporting – The number of units reporting is 235.
- Number and Percentage of Units – The number and percentage of units that achieved the stated level of performance is 235 units of 243 units currently operating.
- Distinguishing Characteristics – The distinguishing characteristics of the group measured are time in operation and Franchised Units.
- Stretch Zone had to exclude the results of operations of 5 units relocating.
- Some Franchise Businesses have sold or earned this amount. Your individual results may differ. There is no assurance that you’ll sell or earn as much.
- “Gross Revenues” means the entire amount of all of the revenues from the ownership or operation of the Franchise Business, including the proceeds of any business interruption insurance, whether the revenues are evidenced by cash, credit, checks, or gift certificates (unless exempted by Stretch Zone), and the fair market value of any services, property, or other means of exchange, except the amount of any sales taxes that are collected and paid to the taxing authority (based on the cash method of accounting).
- Stretch Zone allows the deduction of cash refunded, credit given to customers, and receivables uncollectible from customers in computing Gross Revenues to the extent that the cash, credit, or receivables were previously included in Gross Revenues on which Royalty Fees and Advertising Contributions were paid.
- Gross Revenues are considered received at the time the goods, products, merchandise, or services from which Gross Revenues are derived are delivered or rendered, or at the time that the relevant sale takes place, whichever occurs first.
- These sales figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the Gross Revenues figures to obtain your net income or profit.
- Stretch Zone calculated the figures in the table in this financial performance representation using financial reports submitted by its franchisees.
Section VI – Stretch Zone Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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