On what basis is the Development Area for a Stretch Zone franchise usually determined?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant you a Development Area that will be described in the Map attached as Exhibit A to the Area Development Agreement. The Development Area is usually based on a city or county basis, or a Designated Marketing Area depending on the number of Franchised Units to be developed.
We do not grant to you exclusive rights within the Development Area. You may face competition from other Franchised Units, Company-Owned Units, or from other channels of distribution or competitive brands that we control. We grant you the right to construct, open and operate Franchise Businesses within the Development Area pursuant to a Development Schedule under which you must open a specified number of Franchise Business within a specified time. The Development Area will usually be a city or county. We will grant each Franchised Unit you open within the Development Area a Limited Protected Territory under the applicable franchise agreement. For the perimeter of the Development Area, you agree that you will not select a site that is within the limited protected territory of a Company-Owned Unit or Franchised Unit that is operating or under construction.
We must approve the location for all future Franchised Units that you develop and the Limited Protected Territory (to be granted under the applicable franchise agreement) for each of these Franchised Units. Our then current standards for sites and territories will apply.
Source: Item 12 — ITEM -12 TERRITORY (FDD pages 54–58)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Development Area granted to a franchisee is typically determined based on a city, county, or Designated Marketing Area (DMA). The specific basis depends on the number of franchised units to be developed within that area.
While Stretch Zone grants a Development Area, it's important to note that these rights are non-exclusive. Franchisees may face competition from other franchised units, company-owned units, or other channels of distribution, including competitive brands controlled by Stretch Zone. The franchisee has the right to build and operate franchise businesses within the Development Area according to a Development Schedule, which specifies the number of units to be opened within a certain timeframe. Each franchised unit opened within the Development Area will receive a Limited Protected Territory under the franchise agreement.
Stretch Zone requires approval of the location for all future franchised units developed by the franchisee, as well as the Limited Protected Territory granted to each unit. The franchisor's current standards for sites and territories will be applied during this approval process. For the perimeter of the Development Area, the franchisee must agree not to select a site within the limited protected territory of a company-owned or franchised unit that is operating or under construction.