Does the Stretch Zone agreement disclaim representations made in the Franchise Disclosure Document and its exhibits?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 Franchise Disclosure Document, the franchise agreement includes acknowledgements that address reliance on representations made outside of the FDD, but these acknowledgements do not apply to franchisees in certain states. Specifically, Section 19.17 of the agreement includes acknowledgements for franchisees and franchised units, except those subject to franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin.
For franchisees outside of those listed states, the agreement stipulates that they have conducted an independent investigation of the Stretch Zone business venture, acknowledging the associated business risks and the dependence of their results on their own efforts and abilities. These franchisees confirm they have reviewed the agreement and the FDD, had ample opportunity to consult with representatives and advisors, and were advised to do so.
Furthermore, these franchisees acknowledge that they are not aware of any representations about the Stretch Zone franchise opportunity that contradict the FDD or the franchise agreement. They confirm they are not relying on any representations or warranties, whether express or implied, from Stretch Zone or its representatives, except those explicitly stated in the agreement and the FDD. The agreement also states that unless specified in the FDD, Stretch Zone has not made any representations regarding historical or anticipated revenues, earnings, or profitability. Any information acquired from other Stretch Zone franchisees about their sales, profits, or cash flows is not endorsed or represented for accuracy by Stretch Zone.