What is the fine imposed by Stretch Zone if a person providing stretching services is not certified by Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
2, 10.3, and 10.4, except for a transfer in accordance with Section 10.2(b), you will pay us a fee in the amount of $10,000 (the "Transfer Fee").
- (h) Renewal Fee. Shortly before the expiration of the Initial Term, if you decide to obtain a Renewal Franchise Agreement in accordance with Subsection 16.2(a), you must pay us a Renewal Fee equal to 50% of the then-current Initial Franchise Fee.
- (i) Our Attorneys' Fees. If after the Franchise Agreement is signed by the parties: (i) you request our written consent to any action of yours and we consult our attorney; or (ii) we have our attorney prepare a letter, a Notice of Default or a Notice of Termination to you, then you agree to reimburse us for our attorneys' fees and costs under these circumstances.
- (j) Fines for Non-Compliance. If we find you to be in violation of certain terms of this Agreement constituting a material default by you that would entitle us to terminate the Franchise Agreement, we will send you a letter setting forth the nature of the non-complying act and what steps you must take to cure the violation. We will also impose a fine of $250, provided that, if the default involves the offer or sale of unauthorized or prohibited products, the fine is $500 per day until you
cease such offer or sale. You must immediately cure the violation and pay the fine within 10 days of receipt of our notice of non-compliance.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, if a person providing stretching services is not certified by Stretch Zone, a fine of $250 will be issued for every day the person continues to provide stretching services. This falls under the non-compliance terms outlined in the franchise agreement.
Stretch Zone requires franchisees to ensure all practitioners are certified to maintain service quality and brand standards. The fine serves as a deterrent against using uncertified personnel, which could compromise the Stretch Zone's reputation and service delivery. Franchisees must take immediate action to rectify the violation and pay the fine within 10 days of receiving notice of non-compliance from Stretch Zone.
Failure to cure the violation and pay the fine within the stipulated timeframe allows Stretch Zone to exercise its rights under Article 11 of the franchise agreement, which may include further penalties or termination of the agreement. This highlights the importance of adhering to Stretch Zone's certification requirements for all stretching service providers.
This policy ensures that all Stretch Zone locations maintain a consistent level of service quality through certified practitioners. Franchisees should prioritize staff training and certification to avoid these fines and uphold the brand's standards.