What conditions must be satisfied before the expiration of the Stretch Zone franchise agreement to obtain a renewal?
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 are different from the terms of this Agreement. We are not obligated to provide any initial or other pre-opening obligations and you are not obligated to perform any pre-opening duties contained in the Renewal Franchise Agreement that apply only to new franchisees. You must also sign all other agreements ancillary to the Renewal Franchise Agreement.
- (iv) You will not pay another Initial Franchise Fee but you will pay to us the Renewal Fee described in Subsection 3.1(h);
- (v) You and your shareholders (members), and your directors and officers (managers) must sign a Franchise Termination and Release Agreement, in the form attached
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 unlimited options to obtain a Renewal Franchise Agreement for additional terms of 10 years each. To renew their franchise agreement with Stretch Zone, franchisees must meet several conditions before the current agreement expires.
First, the franchisee must provide written notice to Stretch Zone 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 of the existing Franchise Agreement or any other agreement with Stretch Zone or its affiliates at the time of renewal.
Additionally, within 30 days before the end of the initial term, the franchisee must sign and deliver a Renewal Franchise Agreement and all ancillary agreements to Stretch Zone. The Renewal Franchise Agreement may contain material business terms that differ from the original agreement. While Stretch Zone is not obligated to provide any initial or pre-opening support, and the franchisee is not required to perform any pre-opening duties that apply only to new franchisees, the franchisee and their shareholders, members, directors, and managers must sign a Franchise Termination and Release Agreement, releasing any claims against Stretch Zone and its affiliates. Finally, while the franchisee will not pay another Initial Franchise Fee, they will be required to pay the Renewal Fee outlined in Subsection 3.1(h).