What 'Assets' are included in a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Business System" means our business system including: patented devices assisting in the stretching routines; distinctive sales and operating methods; sources of supply; uniform standards; procedures for the management of the business; advertising and promotional materials and programs; assistance and training in the operation, management and promotion of the business; an Operations Manual; and bookkeeping and accounting methods and procedures for operating a Franchise Business.
ARTICLE 5 - INTELLECTUAL PROPERTY
Section 5.1 OUR REPRESENTATIONS AS TO THE INTELLECTUAL PROPERTY
We represent to you that:
- (a) Ownership. We are the sole owner of the Intellectual Property.
- (b) Protection. We will take all steps necessary to preserve and protect the ownership and validity of the Intellectual Property.
Section 5.2 YOUR USE OF THE INTELLECTUAL PROPERTY
You may use the Intellectual Property only in accordance with standards and specifications we reasonably determine and implement on a Network-wide basis. You agree that:
(a) Limitation on Use. You will use the Intellectual Property only for the operation of your Franchise Business at the Premises.
- (b) Prohibitions. You will not employ any of the Intellectual Property in signing any contract, check, negotiable instrument or legal obligation, application for any license or permit, or in a manner that may result in liability to us for any indebtedness or obligation of yours.
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 assets included in a Stretch Zone franchise relate to the brand's intellectual property and the systems used to operate the business. The Stretch Zone 'Business System' includes patented devices used in stretching routines, distinctive sales and operating methods, supply sources, uniform standards, business management procedures, advertising and promotional materials, operational assistance and training, an operations manual, and bookkeeping and accounting methods.
Stretch Zone retains sole ownership of its Intellectual Property and takes necessary steps to protect it. Franchisees are permitted to use this Intellectual Property only for operating their franchise at their designated premises and must adhere to Stretch Zone's standards. Franchisees are prohibited from using Stretch Zone's Intellectual Property to incur any liability or obligation on behalf of the franchisor.
In practical terms, this means a Stretch Zone franchisee gains access to a comprehensive business model and brand identity. However, they must strictly adhere to Stretch Zone's guidelines and cannot use the brand's assets for unauthorized purposes. This ensures brand consistency across all franchise locations and protects Stretch Zone's Intellectual Property.