What constitutes unfair competition by a Stretch Zone franchisee as defined in Section 12.6?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 12.6 UNFAIR COMPETITION
You agree, if you continue to operate or later begin to operate any other business, you will not engage in any unfair competition as that term has been interpreted under 15 U.S.C. § 1125(a), commonly known as Section 43(a) of the Lanham Act or under Florida law including trademark infringement, passing off, false advertising, misappropriation and unfair competition. This Section does not relieve, directly or indirectly, your obligations under ARTICLE 13.
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, Section 12.6 defines unfair competition. Specifically, if a franchisee continues to operate or later begins to operate any other business, they must not engage in any unfair competition. \
The term "unfair competition" is defined under 15 U.S.C. § 1125(a), commonly known as Section 43(a) of the Lanham Act, or under Florida law. This includes trademark infringement, passing off, false advertising, misappropriation, and unfair competition. This definition provides a legal framework for what Stretch Zone considers to be unfair competition by its franchisees.
It is important to note that Section 12.6 does not relieve the franchisee of their obligations under Article 13 of the agreement. This means that even if an action is not considered unfair competition under the Lanham Act or Florida law, it could still be a violation of Article 13, which likely covers other aspects of the franchisee's responsibilities and restrictions.