Does the Stretch Zone Franchise Agreement disclaim representations made in the FDD?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| 3. Interfere with our business or any of our other Franchise Businesses. These provisions are subject to state law. | ||
| r. Non-competition covenants after the franchise is terminated or expires1 | Subsection 13.1(a)(ii) | You may not, for 24 months after the end of your Franchise Agreement: 1. Influence any Business Associate of us to modify its relationship with us; 2. Have any involvement with any Competitive Business, within 50 miles of any Franchise Business then in operation or under contract; or 3. Interfere with our business or any of our other Franchise Businesses. These provisions are subject to state law. |
| s. Modification of the agreement | Sections 6.3, 13.1(e) and 19.2 | Your Franchise Agreement may not be modified without the consent of both you and us except: 1. We may change the contents of the Operations Manual; 2. We may modify the Business System; and 3. A court may modify any provision of your Franchise Agreement in accordance with applicable law. |
| t. Integration/merger clause | Section 19.14 | Only the terms of the Franchise Agreement and other written agreements are binding (subject to applicable state law). Nothing in the Franchise Agreement or in any other related written agreement is intended to disclaim the representations we made in this FDD. Any representations or promises outside the FDD and Franchise Agreement may not be enforceable. |
Source: Item 17 — ITEM -17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 65–73)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Franchise Agreement contains an integration/merger clause that addresses the relationship between the Franchise Agreement, other written agreements, and the FDD. Specifically, the integration/merger clause states that only the terms within the Franchise Agreement and other written agreements are binding, while also clarifying that nothing within these documents is intended to disclaim the representations made by Stretch Zone in the FDD.
This clause means that Stretch Zone is not disclaiming the representations made in the FDD. However, any representations or promises made outside of the FDD and the Franchise Agreement may not be enforceable. This is a standard provision in franchise agreements, designed to provide clarity and certainty regarding the terms of the franchise relationship.
For a prospective Stretch Zone franchisee, this means that the information contained in the FDD is considered valid and reliable. However, it also implies that any verbal promises or assurances not documented in the FDD or the Franchise Agreement may not be legally binding. Therefore, it is crucial for potential franchisees to ensure that all important terms and conditions are included in the written agreements to avoid potential disputes or misunderstandings in the future.