Does Stretch Zone advise franchisees to consult with legal counsel and other advisors?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The following acknowledgements apply to all franchisees and Franchised Units, except those that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
- (a) You have conducted an independent investigation of the business venture contemplated by this Agreement and recognize that it involves business risks and that your results will be largely dependent upon your own efforts and ability. You have reviewed this Agreement and the FDD. You have been accorded ample time to consult with, and ask questions of, our representatives and to consult with your own legal counsel and other advisors about the potential risks and benefits of entering into this Agreement, and we have advised you to do so.
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, Stretch Zone advises prospective franchisees to consult with legal counsel and other advisors. This recommendation is explicitly stated in the acknowledgments section applicable to franchisees and franchised units, excluding those in states with specific franchise disclosure laws like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
Specifically, Stretch Zone emphasizes that franchisees should conduct an independent investigation of the business venture, acknowledging the inherent business risks. Franchisees are encouraged to review the franchise agreement and the FDD thoroughly. Stretch Zone represents that it has provided ample opportunity for franchisees to ask questions of their representatives and to seek advice from their own legal counsel and other advisors regarding the potential risks and benefits of entering into the agreement.
This advisory highlights the importance of due diligence in the franchise purchasing process. Stretch Zone wants to ensure that franchisees understand the terms of the agreement and are aware of the potential challenges and rewards. By recommending consultation with legal and business professionals, Stretch Zone aims to promote informed decision-making and minimize future disputes or misunderstandings. Prospective franchisees should take this recommendation seriously and engage qualified advisors to review the FDD and franchise agreement before making a final commitment.