What agreements are collectively referred to as the 'Obligations' for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS FRANCHISE TERMINATION AND RELEASE AGREEMENT (this "Agreement") is signed and effective on (the "Effective Date") among Stretch Zone Franchising, LLC, as the Franchisor ("we," "us," "our," or "Franchisor"); LLC, a limited liability company, ("Franchisee"); and |
|---|
| ("Guarantor"). |
| BACKGROUND |
| A. |
| We and Franchisee entered into a Stretch Zone Franchise Agreement dated |
| and |
| certain |
| ancillary |
| documents |
| thereto |
| (collectively, |
| the |
| "Franchise |
| Agreement"), under which we granted and Franchisee accepted a Stretch Zone Franchise at |
| (the "Franchise Business"). |
| B. |
| Franchisee's obligations under the Franchise Agreement and other agreement with us |
| are |
| guaranteed |
| by |
| Guarantor |
| under |
| the |
| Guaranty |
| of |
| Franchisee's |
| Obligations |
| dated |
| (the "Guaranty"). |
| C. |
| The parties desire to terminate the Franchise Agreement and the Guaranty and to |
| release us from, and against, all obligations arising in connection with the Franchise Agreement and |
| the Guaranty, except as otherwise provided in this Agreement. |
| The parties agree as follows: |
Source: Item 2 — Obligations Secured. (FDD page 263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Franchise Agreement and any other agreements between the franchisee and Stretch Zone are collectively referred to as the 'Obligations'. These obligations are guaranteed by a Guarantor under the Guaranty of Franchisee's Obligations. This information is relevant in the context of a Franchise Termination and Release Agreement, where the parties agree to terminate the Franchise Agreement and the Guaranty, releasing Stretch Zone from obligations related to these agreements, except as otherwise specified in the termination agreement.
For a prospective Stretch Zone franchisee, this means that their responsibilities and commitments to Stretch Zone are not limited to just the Franchise Agreement itself. Any other agreements they sign with Stretch Zone, such as financing agreements or addenda, also fall under these 'Obligations'. It is important for franchisees to understand the full scope of these 'Obligations' as they are also guaranteed by the Guarantor.
Furthermore, the termination of the Franchise Agreement does not automatically eliminate all obligations. Certain obligations, such as those related to confidentiality, indemnification, governing law, and dispute resolution, may survive the termination and remain in effect until they are satisfied or expire by their nature. Therefore, franchisees should carefully review all agreements and understand which obligations continue even after termination.