What is Drew Brees' role in relation to the Stretch Zone franchise concept?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
laim the representations we made in this FDD. Any representations or promises outside the FDD and the Area Development Agreement may not be enforceable. | | u. Dispute resolution by arbitration or mediation1 | Section 9.1 | All disputes must be resolved first by informal dispute resolution and, if unsuccessful, by mediation and, if mediation is not successful, then by arbitration except claims involving: 1. The Intellectual Property; 2. Any lease or sublease of real property; 3. Your obligations upon termination or expiration of your Area Development Agreement; 4. Any transfers; 5. Matters involving claims of danger, health or safety; and 6. Requests for restraining orders, injunctions or similar procedures. You must waive your rights to a jury trial and claims for punitive damages. |
| Provision | Section in Area Development Agreement | Summary |
|---|---|---|
| v. Choice of forum1 | Section 9.1 | Subject to state law, any informal dispute resolution, |
| mediation or arbitration proceeding must be conducted | ||
| where our principal office is located |
Source: Item 18 — ITEM -18 PUBLIC FIGURES (FDD page 73)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, Drew Brees, the former NFL quarterback, has a Celebrity Endorsement Agreement with Stretch Zone. Since January 2021, Brees has been a public figure identified with physical conditioning, including stretching exercises, and endorses the Stretch Zone franchise concept.
In exchange for Brees' endorsement, Stretch Zone agreed to several terms. Initially, this included a guaranteed minimum $250,000 annual payment to Brees Company, Inc. (BCI). Brees also obtained the right to be on the Management Committee and received Unit Appreciation Rights. Furthermore, he was granted Area Development Rights for 20 franchises in the greater New Orleans, Indianapolis, and San Diego areas, and a Right of First Refusal for franchises in Orange County, California.
The agreement was amended in June 2023, extending the term to December 31, 2028, and increasing the guaranteed minimum annual payment to BCI to $500,000. Additionally, certain Class C units of Stretch Zone's Parent company were issued to Brees. This arrangement allows Stretch Zone to use Drew Brees' name, image, and endorsement in their marketing and promotional activities, leveraging his reputation to attract potential franchisees and customers.