Who has the burden of proving that a default was properly and timely cured under the Stretch Zone agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
With respect to non-monetary defaults, except as otherwise provided in Section 11.1 and 11.2, you have 30 days after delivery from us of a written Notice of Default specifying the nature of the default and what steps you must take to remedy any default. You must timely provide evidence of cure satisfactory to us. If you fail to cure any default within that time (or any longer time required by applicable law), you have committed an Event of Default giving us the right to terminate this Agreement. In addition to the Events of Default specified in Sections 11.1 and 11.2, it is an Event of Default if you fail to comply with any requirement imposed by this Agreement, as it may be revised or supplemented by the Operations Manual. You have the burden of proving that you properly and timely cured any default, to the extent we permit a cure under this Agreement.
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, the franchisee bears the burden of proving that they properly and timely cured any default, to the extent that Stretch Zone permits a cure under the franchise agreement.
This means that if Stretch Zone alleges a franchisee has defaulted on their agreement (for example, by failing to pay royalties or not adhering to operational standards), it is the franchisee's responsibility to demonstrate that they took the necessary steps to correct the issue within the allotted timeframe. The franchisee must provide evidence that satisfies Stretch Zone that the default has been resolved.
This allocation of responsibility is significant because it places the onus on the franchisee to maintain thorough records and documentation of their compliance efforts. If a dispute arises regarding whether a default was properly cured, the franchisee will need to present compelling evidence to support their case. Prospective franchisees should understand this obligation and be prepared to diligently track and document their actions in response to any default notices from Stretch Zone.