What action must a Stretch Zone franchisee take after receiving the Franchise Disclosure Document?

According to Stretch Zone's 2025 Franchise Disclosure Document, after receiving the FDD, a prospective franchisee must complete and sign both copies of the detachable receipt (Exhibit P), keep one copy for their records, and mail the other copy to Stretch Zone. This receipt serves as verification that the franchisee received the FDD and is not a binding contract.

It is standard practice in the franchise industry for franchisors to require a signed receipt to document that prospective franchisees have received the FDD. This is to ensure that the franchisee has had the opportunity to review the document and is aware of the terms and conditions of the franchise agreement before making a financial commitment. The FDD includes several contracts, agreements, and other relevant documents as exhibits, such as the Franchise Agreement, Approved Location Addendum, Area Development Agreement, State Addenda, Guaranty, Agreement with Landlord, Telephone Number and Directory Advertising Assignment Agreement, Security Agreement, UCC-1 Financing Statement and Rider, Software Sublicense Agreement, Franchise Termination and Release Agreement, and Form of Regional Advertising Cooperative Agreement.

For prospective Stretch Zone franchisees in California and Hawaii, there are additional considerations. The California Franchise Investment Law mandates that all proposed agreements related to the franchise sale be delivered with the FDD. Furthermore, the California addendum specifies that no statement signed by the franchisee can waive claims under state franchise law or disclaim reliance on franchisor statements. In Hawaii, the FDD has been filed under the Franchise Investment Law, and it is unlawful to offer or sell a franchise without providing the FDD and all proposed agreements to the prospective franchisee at least seven days before any binding agreement is executed or any consideration is paid.