What conditions must a Stretch Zone franchisee satisfy to obtain a Renewal Franchise Agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The Initial Term of this Agreement is 10 years from the Agreement Date, unless sooner terminated under ARTICLE 11. The conditions to obtain a Renewal Franchise Agreement at the expiration of this Agreement are those stated in Section 16.2.
Section 16.2 OPTION TO OBTAIN RENEWAL FRANCHISE AGREEMENT
- (a) Evergreen Renewal. We grant you unlimited options to obtain a Renewal Franchise Agreement for a term of 10 years each. You must satisfy all of the following conditions before the expiration of this Agreement, unless we specified another time below.
- (i) You must give us written notice of your intention to exercise the option at least 6 months before but not more than 12 months before the end of the Initial Term.
- (ii) You cannot be in default of any provision of this Agreement or any other agreement between you and us or our Affiliates at the time of renewal.
- (iii) Within 30 days before the end of the Initial Term, you must sign and deliver to us a Renewal Franchise Agreement. The Renewal Franchise Agreement may have material business terms that
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, franchisees have the option to obtain a Renewal Franchise Agreement, with unlimited options for a term of 10 years each. To exercise this option, franchisees must meet specific conditions before the current agreement expires, unless Stretch Zone specifies otherwise.
First, the franchisee must provide written notice of their intent to renew the agreement. This notice must be given at least 6 months, but no more than 12 months, before the end of the initial term. Second, the franchisee must not be in default of any provision within the current agreement or any other agreements they have with Stretch Zone or its affiliates at the time of renewal.
Finally, the franchisee is required to sign and deliver a Renewal Franchise Agreement to Stretch Zone within 30 days before the end of the initial term. It is important to note that the Renewal Franchise Agreement may contain material business terms that differ from the original agreement. This means that the terms and conditions under which the franchisee operates their Stretch Zone business could change upon renewal, so careful review is essential.