What constitutes the 'Opening Date' for a Stretch Zone franchise business?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
If you open before we have given our written consent, you must cease operating the Franchise Business until we give you our written consent.
- (b) Conditions to Opening.
We will give our written consent when: (a) all your obligations under Sections 4.1 through 4.9 have been fulfilled; (b) we determine that your Franchise Business has been constructed, furnished, equipped, and decorated in accordance with approved plans and specifications; (c) those individuals that we designate (whether in this Agreement or the Manual) have attended and completed, to our reasonable satisfaction, Pre-Opening Training, any other pre-opening training that we require, and any prerequisites for the applicable individual's position at the Franchise Business that we specify, and you have at least 1 Certified Stretch Zone Practitioner; (d) the Initial Franchise Fee and all amounts due to us and our Affiliates under this Agreement have been paid in full; (e) we have been furnished with certificates of insurance and copies of all insurance policies or all other evidence of insurance coverage as we reasonably request; (f) you have obtained a certificate of occupancy for your Premises; and (g) you have obtained all necessary licenses and permits to operate your Franchise Business.
You will comply with these conditions and be prepared to open your Franchise Business for business within 6 months after the Agreement Date.
If you fail to open your Franchise Business within 6 months after the Agreement Date, we have the right to terminate this Agreement and retain the Initial Franchise Fee.
If we terminate the Franchise Agreement you must also sign the Franchise Termination and Release Agreement included in Exhibit N.
- (c) Statement of Costs to Open.
Within three months after you open, you will prepare and provide us with a complete and detailed written statement in the form contained in the Operations Manual containing a breakdown of all costs you incurred in the construction and initial operation of the Franchise Business.
- (d) Certificate of Performance.
After we have performed all of our pre-opening obligations and you are open for business, we may request you to sign a certification in the form included in the Operations Manual ("Certificate of Performance") confirming our performance.
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 the 2025 Stretch Zone FDD, the franchisor's written consent is required before a franchisee can open their business. If a franchisee opens a Stretch Zone before receiving this consent, they must cease operations until it is granted.
Stretch Zone outlines several conditions that must be met before they will provide written consent for a franchisee to open. These conditions include fulfilling all obligations under Sections 4.1 through 4.9 of the franchise agreement, ensuring the business is constructed and equipped according to approved plans, completing required pre-opening training to Stretch Zone's satisfaction (including having at least one Certified Stretch Zone Practitioner), paying all due fees, providing necessary insurance documentation, and obtaining a certificate of occupancy and all required licenses and permits.
Furthermore, a Stretch Zone franchisee is expected to open their business within six months of the Agreement Date. Failure to do so gives Stretch Zone the right to terminate the agreement and retain the initial franchise fee. After opening, the franchisee must provide Stretch Zone with a detailed statement of all costs incurred during construction and initial operation within three months, using a form provided in the Operations Manual. Stretch Zone may also request the franchisee to sign a Certificate of Performance, confirming that Stretch Zone has fulfilled its pre-opening obligations.