Does the Stretch Zone agreement confer any rights or remedies to individuals other than the parties involved and their representatives?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS AGREEMENT is signed on among Stretch Zone Franchising LLC (the "Franchisor");, a limited liability company (the "Landlord") and , LLC, a limited liability company (the |
|---|
| "Tenant/Franchisee"). |
| BACKGROUND |
| A. |
| The Tenant/Franchisee is a franchisee of the Franchisor under a Stretch Zone |
| Franchise Agreement between the Franchisor and the Tenant/Franchisee dated |
| (the "Franchise Agreement") for the operation of a Stretch Zone (the "Franchise Business"). |
| B. |
| The Landlord and the Tenant/Franchisee are parties to a Lease Agreement dated |
| (the |
| "Lease") |
| for |
| the |
| premises |
| located |
| at |
| (the |
| "Premises") |
| that |
| has |
| been |
| approved by the Franchisor on condition that all the parties sign this 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 agreement primarily focuses on the rights and obligations between Stretch Zone Franchising LLC and the franchisee. While the document outlines various definitions and conditions related to the franchise agreement, it does not explicitly state that the agreement confers rights or remedies to individuals other than the parties involved (the franchisor and franchisee) and their representatives.
However, the FDD does mention certain third parties in specific contexts. For example, landlords may be party to the agreement. Additionally, the agreement discusses the possibility of transferring the franchise to a business entity under certain conditions, which could involve other individuals or entities. These scenarios indirectly involve third parties, but the core rights and remedies remain between Stretch Zone and the franchisee.
Prospective franchisees should carefully review the entire Franchise Agreement and FDD, paying close attention to sections regarding third-party beneficiaries, assignment, and transfer. It would be prudent to consult with a legal professional to fully understand the extent to which the agreement may impact or involve other parties. Specifically, franchisees should ask Stretch Zone about any circumstances under which third parties might have standing to enforce provisions of the agreement or seek remedies under it.