What conditions must the franchisee meet regarding title to the assets at the closing of the sale to Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS ASSIGNMENT AGREEMENT is signed on between Stretch Zone Franchising, LLC, a Florida limited liability company ("we," "us" or "our") and ("you" or "your"). |
|---|
| BACKGROUND |
| A. |
| The parties are entering into a Stretch Zone Franchise Agreement on |
| (the "Franchise Agreement"). |
| B. |
| As a condition to signing the Franchise Agreement, we have required that you |
| assign to us all of your right, title and interest in the telephone numbers, telephone listings, |
| facsimile numbers, and telephone directory advertisements relating to the Stretch Zone |
| Franchise (the "Franchise Business") upon the expiration or termination of the Franchise |
| 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)
Based on the 2025 Stretch Zone Franchise Disclosure Document, as a condition of signing the Franchise Agreement, Stretch Zone requires the franchisee to assign all rights, titles, and interests in telephone numbers, telephone listings, facsimile numbers, and telephone directory advertisements related to the Stretch Zone Franchise to them upon the expiration or termination of the Franchise Agreement.
This requirement ensures that Stretch Zone maintains control over the brand's presence and customer communication channels even after a franchise ceases operation. This is particularly important for maintaining brand consistency and preventing confusion among customers. By controlling these assets, Stretch Zone can seamlessly transition the phone and advertising presence to a new franchisee or company-owned unit, if necessary.
For a prospective franchisee, this means that upon the termination or expiration of their franchise agreement, they will lose control over any phone numbers or advertising associated with the business. This could impact their ability to communicate with former clients if they were to start a new, independent venture. Therefore, it is crucial for franchisees to understand this condition and factor it into their long-term business plans and exit strategies.