T-shirt distortion around edges of design

Hey all, I'm screen printer and kind of new to to embroidery (custom). I'm having problems doing a 4 color, 3.5in w x 3.0in h, 10,000 stitches logo on the left chest. The fabric of the shirt very noticably wrinkles or distorts around the edges of the logo. I would appreciate any tips or tricks you fellow stitches might offer. Much appreciated. :):)