With whom did Stretch Zone enter into a Celebrity Endorsement Agreement?
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, effective January 2021, Stretch Zone entered into a Celebrity Endorsement Agreement with Brees Company, Inc. (BCI), a Delaware corporation, for the services of Drew Brees, the former quarterback for the New Orleans Saints in the National Football League.
Under the agreement, Drew Brees endorses the Stretch Zone franchise concept and provides marketing services. Stretch Zone has the right to use Drew Brees' name, nickname, initials, autograph, signature, photograph, likeness, and endorsement for advertising and promotion. In exchange, Stretch Zone agreed to pay BCI a guaranteed minimum annual payment.
The initial agreement was amended in June 2023 to extend the term to December 31, 2028, increase the guaranteed minimum annual payment, and issue Class C units of Stretch Zone's parent company to Mr. Brees. This celebrity endorsement is intended to enhance the brand's visibility and credibility, potentially attracting more customers and franchisees.