Besides Section 4, are there any other exceptions to the termination of obligations under the Stretch Zone Franchise Agreement and/or the Guaranty?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Return of Confidential Information. Franchisee will immediately return to us all Confidential Information (as defined in the Franchise Agreement) in Franchisee's possession or control.
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- Nondisclosure. Franchisee and Guarantor will not discuss with, disclose to or communicate with anyone the terms of this Agreement or the facts surrounding, causing or resulting from the Stretch Zone Franchise, including any prospective, existing or former Stretch Zone Franchisee, unless required by legal process. Franchisee and Guarantors will only state that Franchisee has left the Stretch Zone System. Franchisee and Guarantor understand that the FTC Franchise Rule requires us to disclose Franchisee's name, home address and telephone number in our Franchise Disclosure Document for a specified period of time.
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- No Admission of Liability. By signing this Agreement, no party admits any liability to the other or the truth or falsity of any allegation, statement, communication or fact discussed, disclosed or communicated in any manner, regarding any transaction, communication, contact, statement or action between the parties or in connection with this Agreement, the Franchise Agreement or the Guarantee signed by the parties.
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- Entire Agreement. This Agreement represents the entire understanding and agreement between the parties with respect to the subject matter of this Agreement, and supersedes all other negotiations, understandings and representations if any made by the parties.
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, several obligations extend beyond the termination of the Franchise Agreement and Guaranty, in addition to those outlined in Section 4. These include the franchisee's duty to return all confidential information to Stretch Zone immediately upon termination. Furthermore, the franchisee and guarantor are prohibited from discussing the terms of the termination agreement or any related facts with anyone, including current or prospective Stretch Zone franchisees, unless legally required. They are limited to stating only that the franchisee has left the Stretch Zone system.
Additionally, the termination agreement explicitly states that no party admits any liability by signing the agreement. This ensures that the termination cannot be interpreted as an admission of wrongdoing by either Stretch Zone or the franchisee. The agreement also represents the entire understanding between the parties, superseding any prior negotiations or representations.
These clauses are typical in franchise termination agreements to protect the franchisor's confidential information, brand reputation, and legal position. Prospective Stretch Zone franchisees should carefully review these post-termination obligations to understand their responsibilities even after the franchise relationship ends.