What conditions must be met for Stretch Zone to approve a transfer?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Agreement expires, unless earlier terminated, on the earlier of: (i) the date that the last Franchise Business required to be opened under the Development Schedule actually opens; or (ii) the date that such Franchise Business is required to be opened under the Development Schedule. | | b. Renewal or | Not Applicable | Not Applicable | | extension of the term1 | | | | c. Requirements for | Not Applicable | Not Applicable | | you to renew or | | | | extend | | | | d. Termination by | Not Applicable | You may terminate under any grounds permitted by law. | | you1 | | | | e. Termination by us | Not Applicable | Not Applicable | | without cause | | | | f. Termination by us | Section 7.2 | We may only terminate your Area Development | | with cause | | Agreement with cause. | | g. “Cause” defined – curable defaults | Section 7.3 | You have 30 days or any longer period as applicable law may require, after written notice of default to cure any default and provide evidence of cure satisfactory to us. If you fail to cure timely any curable default, we have the right to terminate the Area Development Agreement effective upon your receipt of our written notice of termination. You have the burden of proving you have timely cured any default, to the extent it is a curable default under the Area Development Agreement. Upon |
| Provision | Section in Area Development Agreement | Summary | |---|---|---| | v. Choice of forum1 | Section 9.1 | Subject to state law, any informal dispute resolution, | | | | mediation or arbitration proceeding must be conducted | | | | where our principal office is located when the demand is | | | | requested. Any litigation to enforce the Area | | | | Development Agreement must be filed in the courts | | | | where our principal office is located when litigation is | | | | filed (currently Broward County, Florida). | | w. Choice of law1 | Section 9.1 | Except to the extent governed by the United States | | | | Trademark Act of 1946, the United States Copyright Act | | | | or the United States Arbitration Act, , and subject to | | | | applicable state law, the Development Agreement is | | | | interpreted under the laws of Florida. |
| Provision | Section in Franchise Agreement | Summary |
|---|
Source: Item 17 — ITEM -17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 65–73)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the franchisor has the right to approve or disapprove any transfers. For Stretch Zone to approve a transfer, the following conditions must be met:
First, the franchisee must provide written notice to Stretch Zone. Second, Stretch Zone must not exercise its right of first refusal. Third, the franchisee must not be in default under any agreement with Stretch Zone or its affiliates. Fourth, the transferee must satisfactorily complete Stretch Zone's application procedures, and Stretch Zone must interview and approve the transferee.
Fifth, the transferee must sign a new franchise agreement, which may have materially different terms and conditions than the original agreement; however, the transferee will not have to pay a new initial franchise fee. Sixth, either the franchisee or the transferee must pay a transfer fee of $10,000. Seventh, the transferee must properly assume all of the franchisee's obligations, including the lease. Eighth, the franchisee must sign a Franchise Termination and Release Agreement. Ninth, the transferee must successfully complete Stretch Zone's Franchisee Training Program and other then-current training requirements. Finally, both parties must sign Stretch Zone's transfer form.