Does the Stretch Zone Area Development Agreement disclaim representations made in the FDD?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Development Agreement | Summary |
|---|---|---|
| Area Development Agreement. You may not transfer the Area Development Agreement. | ||
| n. Our right of first | Not Applicable | Not Applicable |
| refusal to acquire | ||
| your business | ||
| o. Our option to | Not Applicable | Not Applicable |
| purchase your | ||
| business | ||
| p. Your death or | Not Applicable | Not Applicable |
| disability | ||
| q. Non-competition | Not Applicable | Not Applicable |
| covenants during the | ||
| term | ||
| r. Non-competition | Not Applicable | Not Applicable |
| covenants after the | ||
| agreement is | ||
| terminated or expires | ||
| s. Modification of the agreement | Section 9.2 | Your Area Development Agreement may not be modified without the consent of both you and us except: 1. We may change the contents of the Manuals; 2. We may modify the Business System; and 3. A court may modify any provision in accordance with applicable law. |
| t. Integration/ merger clause | Section 8.11 | Only the terms of the Area Development Agreement and other written agreements are binding (subject to applicable state law). Nothing in the Area Development Agreement or in any other related written agreement is intended to disclaim the representations we made in this FDD. Any representations or promises outside the FDD and the Area Development Agreement may not be enforceable. |
Source: Item 17 — ITEM -17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 65–73)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Area Development Agreement does not disclaim representations made in the FDD. The document states that only the terms of the Area Development Agreement and other written agreements are binding, subject to applicable state law.
Specifically, the integration/merger clause in Section 8.11 of the Area Development Agreement clarifies that nothing within the agreement or any related written agreement is intended to disclaim the representations made by Stretch Zone in the FDD. This means that the representations made in the FDD are intended to be binding and enforceable.
However, any representations or promises made outside of the FDD and the Area Development Agreement may not be enforceable. This implies that prospective Stretch Zone franchisees should rely primarily on the information provided in the FDD and the Area Development Agreement when making their investment decision, and should seek to have any additional promises or representations included in writing within these documents to ensure enforceability.