Will Stretch Zone charge an Initial Franchise Fee to the transferee?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not charge an Initial Franchise Fee.
(vii) You will pay us the Transfer Fee to reimburse us for our costs in approving the transfer and in training the transferee.
(viii) The transferee must assume your obligations under the lease of the Premises or sign a new lease with the property owner.
(x) At the transferee's expense, the personnel of the transferee that we designate must complete the Franchisee Training Program, the Regional Manager Program, and our other then-current training requirements for new franchisees upon all terms that we reasonably require.
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 FDD, Stretch Zone will not charge an Initial Franchise Fee to the transferee. However, the transferee must meet several conditions to be approved.
The transferee must complete Stretch Zone's application procedures for new franchisees, interview at Stretch Zone's principal office, and demonstrate that they possess the business skills, personal skills, reputation, and financial capacity that Stretch Zone requires of new franchisees. The transferee must also sign Stretch Zone's current form of Franchise Agreement and all other agreements attached as exhibits to the current FDD, which may vary in material aspects from the original agreement, including potentially higher Royalty Fees and Advertising Fees and a smaller Limited Protected Territory.
Additionally, the franchisee must pay Stretch Zone a Transfer Fee to reimburse Stretch Zone for costs in approving the transfer and training the transferee. The transferee must also assume the obligations under the lease of the premises or sign a new lease with the property owner. The personnel of the transferee that Stretch Zone designates must complete the Franchisee Training Program, the Regional Manager Program, and Stretch Zone's other then-current training requirements for new franchisees at the transferee's expense.