What was the date the court dismissed the lawsuit against Stretch Zone Holdings LLC with prejudice?
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 Bush as SZH's General Manager and sought to have the resolution rescinded, Mr.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 involving Stretch Zone Holdings LLC (SZH), Stretch Zone's predecessor, was dismissed with prejudice on December 14, 2020. The lawsuit, filed on October 18, 2019, by Michael S. Bush, a former owner and General Manager of SZH, against SZH's other owners, Jorden Gold and Bonnie Lane, and SZH, included multiple counts alleging improper removal, fraud, and conspiracy.
The counts included allegations that Mr. Gold and Ms. Lane improperly resolved to remove Mr. Bush as SZH's General Manager, sought the removal of Mr. Gold from his roles, and requested judicial dissolution of SZH based on fraudulent claims. The court dismissed several counts in June 2020, specifically Counts I, II, III, V, and VI, and struck Mr. Bush's claim for punitive damages.
Subsequently, the parties reached a settlement agreement where SZH agreed to pay Mr. Bush $5,250,000 as a buy-out of his ownership interest in SZH. Following this settlement, the court dismissed the entire matter with prejudice on December 14, 2020. The dismissal with prejudice means that the case cannot be brought back to court.