Does Stretch Zone assume liability for approving or disapproving a proposed lease?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Lease Assistance. If you intend to lease your Premises from a third party, we will advise you in your lease negotiations. Any lease must provide that the effectiveness of the lease is conditioned upon your obtaining our written approval. Our approval will be given when we, you and the property owner sign our form of Agreement with Landlord attached as Exhibit H. You agree that our approval or disapproval of a proposed lease does not impose any liability on us. (Section 2.2 of the Franchise Agreement.)
Source: Item 11 — ITEM -11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–44)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, Stretch Zone provides lease negotiation advice to franchisees who intend to lease their premises from a third party. The lease must be conditional upon Stretch Zone's written approval, which is granted when Stretch Zone, the franchisee, and the property owner sign Stretch Zone's form of agreement with the landlord. However, Stretch Zone explicitly states that its approval or disapproval of a proposed lease does not impose any liability on them.
This means that while Stretch Zone offers assistance and requires approval of the lease, the franchisee ultimately bears the responsibility for the lease terms and any associated risks. A prospective franchisee should carefully consider this aspect, as they cannot hold Stretch Zone liable for any issues arising from the lease agreement, even if Stretch Zone has approved it.
This arrangement is fairly common in franchising, where franchisors provide guidance but aim to limit their liability regarding real estate decisions made by franchisees. It is crucial for potential Stretch Zone franchisees to conduct their own due diligence and seek legal counsel to fully understand the lease terms and potential liabilities before signing any agreements.