What counts were dismissed by the Court in the lawsuit against Stretch Zone Holdings LLC?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM -3 LITIGATION
Predecessor Litigation
Michael S. Bush v. Jordan Gold a/k/a Jorden Gold; Bonnie Lane; and Stretch Zone Holdings LLC, a Florida limited liability company. In the Circuit Court of the 17th Judicial Circuit in and for Broward County, Florida, Case No. CACE-19-020585 (07). On October 18, 2019, a former owner and General Manager of our predecessor, SZH, and our then-Chief Executive Officer, President, and Manager, Michael S. Bush, filed suit against SZH's other owners, Jorden Gold (also our founder) and Bonnie Lane, and SZH. In Count I, Mr. Bush alleged that Mr. Gold and Ms. Lane improperly resolved as members of SZH to remove Mr. Bush as SZH's General Manager and sought to have the resolution rescinded, Mr. Gold removed from his roles at SZH, and Mr. Bush reinstated with respect to his role roles at SZH. In Count II, Mr. Bush sought to have a custodian appointed to manage SZH during the pendency of the action. In Count III, Mr. Bush sought to have a receiver appointed for SZH to prepare an inventory of SZH's assets during the pendency of the action. In Count IV, Mr. Bush sought to have SZH judicially dissolved based on an allegedly fraudulent claim that Mr. Gold and Ms. Lane collectively owned 51% of SZH's membership interests, an alleged deadlock between Mr. Bush and Ms. Gold in SZH's management, and alleged irreparable injury to SZH. In Count V, Mr. Bush alleged fraud against Mr. Gold and Ms. Lane, based on their alleged fraudulent representations regarding SZH's ownership. In Count VI, Mr. Bush alleged that Mr. Gold and Ms. Lane engaged in a conspiracy and scheme to defraud Mr. Bush in connection with the above-referenced resolution. In June 2020, the Court dismissed Counts I, II, III, V, and VI and struck Mr. Bush's claim for punitive damages. The parties entered into a settlement agreement, under the terms of which SZH agreed to pay Mr. Bush $5,250,000 as a buy-out of Mr. Bush's ownership interest in SZH. On December 14,
Source: Item 1 — ITEM -1 THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 10–15)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, a lawsuit was filed against Stretch Zone Holdings LLC (SZH) by Michael S. Bush, a former owner and General Manager of SZH. The lawsuit included multiple counts alleging improper actions by other owners, Jorden Gold and Bonnie Lane.
The Court dismissed several of the counts brought by Mr. Bush. Specifically, Count I, which sought to rescind the resolution removing Mr. Bush as General Manager, was dismissed. Count II, which requested the appointment of a custodian to manage SZH, and Count III, which sought the appointment of a receiver to inventory SZH's assets, were also dismissed. Additionally, Count V, alleging fraud against Mr. Gold and Ms. Lane, and Count VI, alleging a conspiracy and scheme to defraud Mr. Bush, were dismissed by the Court. The court also struck Mr. Bush's claim for punitive damages.
The parties eventually reached a settlement agreement where SZH agreed to pay Mr. Bush $5,250,000 as a buy-out of his ownership interest in SZH. Subsequently, on December 14, 2020, the Court dismissed the entire matter with prejudice, meaning it cannot be brought again. This resolution provides closure to the dispute and removes any ongoing legal uncertainty related to these specific claims for Stretch Zone.