Where must the Stretch Zone agreement be accepted for it to be effective?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
[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.]
Section 19.17 ACKNOWLEDGMENTS IN CERTAIN STATES
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.
- (b) You have no knowledge of any representations made about the Stretch Zone franchise opportunity by us, our Affiliates, or any of our or their officers, directors, owners, or agents that are contrary to the statements made in the FDD or to the terms and conditions of this Agreement. You are not relying on any representations or warranties, express or implied, provided by us or our representatives other than those expressly set forth in this Agreement and the FDD.
- (c) Except as may be stated in the FDD, neither we, nor any of our Affiliates, nor any of our or our Affiliates' officers, agents, employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Stretch Zone business or the anticipated revenues, earnings, or profitability of your Franchise Business or any other business operated by us, our licensees, our franchisees, or our Affiliates. Any information you have acquired from other Stretch Zone franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy.
| THIS APPROVED LOCATION ADDENDUM is signed on between Stretch Zone Franchising LLC ("we, "us" or "our") and ("you" |
|---|
| or "your"). |
| BACKGROUND |
| A. |
| The |
| parties |
| have |
| signed |
| a |
| Stretch |
| Zone |
| Franchise |
| Agreement |
| on |
| (the "Franchise Agreement") before you selected a location that we had |
| approved for the Franchise Business. |
| B. |
| You have now selected a location that we have approved and, under Section 1.2 of |
| the Franchise Agreement, the parties are entering into this Addendum. |
| The parties agree as follows: |
| TERMS |
| 1. |
| You |
| agree |
| that |
| you |
| will |
| operate |
| the |
| Franchise |
| Business |
| only |
| at |
| (the "Premises"). |
| 2. |
| Your Limited Protected Territory is described on the attached Map. |
| 3. |
| Upon any inconsistency between the terms of the Franchise Agreement and the |
| terms of this Addendum, the terms of this Addendum supersede and control. In all other respects, |
| the parties ratify and confirm the terms of the Franchise Agreement. |
| THIS ASSIGNMENT AGREEMENT is signed on between Stretch Zone Franchising, LLC, a Florida limited liability company ("we," "us" or "our") and ("you" or "your"). |
|---|
| BACKGROUND |
| A. |
| The parties are entering into a Stretch Zone Franchise Agreement on |
| (the "Franchise Agreement"). |
| B. |
| As a condition to signing the Franchise Agreement, we have required that you |
| assign to us all of your right, title and interest in the telephone numbers, telephone listings, |
| facsimile numbers, and telephone directory advertisements relating to the Stretch Zone |
| Franchise (the "Franchise Business") upon the expiration or termination of the Franchise |
| Agreement |
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)
Based on the 2025 Stretch Zone Franchise Disclosure Document, the franchise agreement's effectiveness necessitates adherence to New York's Franchise Sales Act, particularly § 683(8). This statute mandates that a Franchise Disclosure Document (FDD) be furnished to prospective franchisees well in advance of any sale. Specifically, the FDD must be provided at the earliest of either the first personal meeting or ten business days before the franchise agreement's execution or any related financial consideration.
This stipulation ensures that potential Stretch Zone franchisees have ample opportunity to review the FDD, seek legal counsel, and thoroughly understand the franchise terms before committing. The acknowledgment in certain states, excluding those with specific franchise disclosure laws like California and New York, emphasizes the franchisee's responsibility to conduct an independent investigation and recognize the business risks involved. Franchisees must also acknowledge that they are not relying on any representations outside of the FDD and the agreement itself.
The agreement also includes an Approved Location Addendum, which is signed when a franchisee selects a location after the initial Franchise Agreement. This addendum specifies the premises and the Limited Protected Territory, superseding the original agreement in case of inconsistencies. Additionally, there's an Assignment Agreement where the franchisee assigns telephone numbers and listings related to the Stretch Zone franchise back to the franchisor upon termination or expiration of the agreement.
In summary, the Stretch Zone agreement's effectiveness hinges on providing the FDD within the legally mandated timeframe, ensuring franchisees are well-informed and have conducted their due diligence. The inclusion of addenda and assignment agreements further clarifies the operational and post-term obligations of the franchisee, contributing to a transparent and legally sound franchise relationship.