Does Stretch Zone allow the franchisee to hire someone other than themselves or their Designated Representative to be the Regional Manager?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
REGIONAL MANAGER
Your Management Responsibility. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual. You must designate an individual to serve as your Regional Manager. We anticipate that you or your Designated Representative will serve as your Regional Manager; however, you may hire another individual to serve as your Regional Manager. The Regional Manager must complete our then-current training requirements to our satisfaction. You acknowledge that, if you choose to operate the Franchise Business using a Regional Manager that you hire (i.e., other than you or your Designated Representative), you may experience lower sales and/or higher costs than other Franchised Units managed by owner/operators.
Regional Manager. The Regional Manager must devote his or her best reasonable full-time efforts to the management and operation of your Franchise Business. You agree that your Franchise Business requires the day-to-day supervision of the Regional Manager at all times your Franchise Business is open for business. The Regional Manager must complete our Regional Manager Training Program (including our Stretch Practitioner Training Program) and Sales Associate Training Program before managing your Franchise Business, unless we otherwise agree in writing.
Change in Regional Manager. If the Regional Manager fails to satisfy his or her obligations provided in Subsection 4.6(c) of the Franchise Agreement due to death, disability, termination of
employment or for any other reason, you, your Designated Representative, or a Franchise Owner will satisfy these obligations until you designate a new Regional Manager who has successfully completed our then-current training requirements (for which you must pay us the applicable training fees). You are solely responsible for the expenses associated with training any replacement Regional Manager, including the then-prevailing standard training fees we charge.
Equity Interest. If you hire an individual (i.e., other than you or your Designated Representative) to serve as your Regional Manager, that individual does not have to own an equity interest in the Business Entity.
RESTRICTIONS ON REGIONAL MANAGER AND OTHER EMPLOYEES
Your Regional Manager and other employees having access to our Operations Manual and other Confidential Information must sign the Confidentiality and Non-Competition Agreement included in the Operations Manual.
Source: Item 15 — ITEM -15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 62–64)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, franchisees can hire someone other than themselves or their Designated Representative to serve as the Regional Manager. While Stretch Zone anticipates that the franchisee or their Designated Representative will take on this role, they permit the hiring of another individual for the position. However, Stretch Zone cautions that franchisees who opt to hire a Regional Manager who is not the owner or the Designated Representative may experience lower sales or higher costs compared to owner-operated franchises.
The Regional Manager is responsible for the day-to-day supervision of the Stretch Zone franchise and must devote their full-time efforts to managing the business. Before they can begin managing the franchise, the Regional Manager must complete Stretch Zone's Regional Manager Training Program, which includes both the Stretch Practitioner Training Program and the Sales Associate Training Program, unless Stretch Zone agrees otherwise in writing.
If the Regional Manager can no longer fulfill their obligations due to various reasons such as death, disability, or termination of employment, the franchisee, their Designated Representative, or a Franchise Owner must step in to cover these responsibilities. This arrangement continues until a new Regional Manager is appointed and has successfully completed the required training. The franchisee is responsible for all expenses associated with training a replacement Regional Manager, including the standard training fees charged by Stretch Zone. The individual hired as Regional Manager is not required to own an equity interest in the Business Entity.
Stretch Zone requires that the Regional Manager, along with other employees who have access to the Operations Manual and other Confidential Information, must sign a Confidentiality and Non-Competition Agreement. This agreement is included in the Operations Manual and ensures the protection of Stretch Zone's proprietary information.