What is a condition that must be met for Stretch Zone to provide site selection assistance to a franchisee?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 2 - OUR DUTIES
We will provide you with the following initial and ongoing assistance and services, as long as you are not in default under this Agreement:
Section 2.1 SITE SELECTION ASSISTANCE
- (a) Our Approval of Site. You must obtain our written approval of the proposed site for the Premises for your Franchise Business before you sign a lease or begin any construction.
- (b) Site Selection Criteria. We will supply you our site selection criteria that includes (a) population demographics within a 3-mile radius of the site; (b) information regarding traffic counts and patterns; (c) number of parking spaces; (d) visibility from the roadways; (e) the predominant character of the neighborhood; (f) competitive businesses within the area; (g) the nature of other businesses in proximity to the site; and (h) the size, appearance and other physical characteristics of the site. Within 30 days after signing this Agreement, you must find a site within the Site Selection Area that you believe meets our criteria. You must send to us all material information regarding the proposed site including pictures of the site. We will not unreasonably withhold our approval of any site meeting our standards. We will review site approval submissions on a first-in basis but within 30 days of your submission. If we do not approve the site, you have 30 days in which to submit a new site within the Site Selection Area for our written approval. If you fail to do so in a timely manner, or we and you cannot agree on a site within 120 days after the Agreement Date, we have the right to terminate this Agreement and retain 100% of the Initial Franchise Fee (as defined in Section 3.1(a)). You will be required to sign the Franchise Termination and Release Agreement included as Exhibit N to the FDD.
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 Stretch Zone's 2025 Franchise Disclosure Document, Stretch Zone will provide site selection assistance and services to a franchisee as long as the franchisee is not in default under the Franchise Agreement. This means the franchisee must be in compliance with all the terms and conditions outlined in the agreement to receive this support.
Specifically, Stretch Zone requires that franchisees obtain written approval of the proposed site for their Franchise Business premises before signing a lease or beginning any construction. This approval process is a prerequisite for Stretch Zone's involvement in site selection.
Within 30 days of signing the Franchise Agreement, the franchisee is expected to identify a potential site within the designated Site Selection Area that aligns with Stretch Zone's criteria. The franchisee must then submit all relevant information about the proposed site, including pictures, to Stretch Zone for review. Stretch Zone commits to reviewing site approval submissions on a first-in basis and will make a decision within 30 days of submission. If the site is not approved, the franchisee has another 30 days to submit a new site for consideration. If a mutually agreeable site cannot be found within 120 days of the agreement date, Stretch Zone reserves the right to terminate the agreement and retain 100% of the Initial Franchise Fee.