Does Stretch Zone assume direct or indirect liability for the maintenance of the Media Fund?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
We assume no other direct or indirect liability or obligation to you for the maintenance, direction or administration of the Media Fund, except as expressly provided in this ARTICLE 7.
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, Stretch Zone assumes limited liability regarding the Media Fund. Specifically, Stretch Zone states that it assumes no direct or indirect liability or obligation for the maintenance, direction, or administration of the Media Fund, except as expressly provided in Article 7 of the agreement.
This means that while Stretch Zone manages the Media Fund and decides how the advertising contributions are spent, their liability is limited to what is explicitly stated in the franchise agreement. As a franchisee, you cannot hold Stretch Zone accountable for losses or mismanagement of the fund unless it violates the specific terms outlined in Article 7.
This arrangement gives Stretch Zone significant control over the Media Fund, including how the money is spent and the types of advertising campaigns that are run. While franchisees contribute to the fund, they have limited say in how it is managed. However, Stretch Zone does commit to providing an annual report of the Media Fund's receipts and expenditures to franchisees within 150 days after the end of each fiscal year, offering some transparency into the fund's operations.