In the event of a casualty that substantially destroys a Stretch Zone premises, what advertising contribution relief is the franchisee granted during relocation?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Premises are substantially destroyed by fire or other casualty, we permit you 30 days to obtain new Premises within your Limited Protected Territory. The relocated Premises must not infringe upon the Limited Protected Territory of a Company-Owned Unit or another Franchised Unit then operating or under development. We must approve the new location in writing in accordance with Section 2.1 of the Franchise Agreement. During the period when your Franchise Business is not in operation due to the relocation of the Premises, you are not required to spend the minimum Local Advertising Contributions. You have 60 days from the date you sign the new lease in which to open and begin operating the Franchise Business, unless we otherwise agree in writing to extend the time. Your failure to secure a new location and begin operation within the specified times is an Event of Default on your part.
Source: Item 12 — ITEM -12 TERRITORY (FDD pages 54–58)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, if a franchisee's premises are substantially destroyed by fire or other casualty, the franchisee is permitted 30 days to obtain new premises within their Limited Protected Territory. The relocated premises must not infringe upon the Limited Protected Territory of a Company-Owned Unit or another Franchised Unit then operating or under development, and the new location must be approved in writing by Stretch Zone.
During the period when the Franchise Business is not in operation due to relocation, the franchisee is not required to spend the minimum Local Advertising Contributions. The franchisee has 60 days from the date they sign the new lease to open and begin operating the Franchise Business, unless Stretch Zone agrees in writing to extend the time. Failure to secure a new location and begin operation within the specified times constitutes an Event of Default on the franchisee's part.
This policy provides some financial relief to Stretch Zone franchisees during a disruptive relocation, specifically by waiving the local advertising contribution requirements. However, franchisees should be aware of the strict timelines for securing a new location and resuming operations, as failure to meet these deadlines can result in default under the Franchise Agreement. Franchisees should also confirm whether the waiver of local advertising contributions extends to regional or national advertising fees, or any other fees, by consulting the Franchise Agreement.