Does the Stretch Zone franchise agreement prohibit franchisees from ceasing to do business with Stretch Zone's suppliers?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Approved Supplier" means a supplier of a particular product or service, possibly among several other suppliers, that we have approved"
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)
Based on the 2025 Stretch Zone Franchise Disclosure Document, the term "Approved Supplier" is defined as a supplier of a particular product or service, possibly among several other suppliers, that Stretch Zone has approved. However, the FDD excerpts do not explicitly state whether a franchisee is prohibited from ceasing to do business with Stretch Zone's approved suppliers.
While the agreement defines approved suppliers, it does not specify any mandatory or prohibitive requirements regarding their usage. Franchisees should note that the agreement does mention fines for non-compliance if unauthorized products are offered or sold at the premises, with a fine of $500 per day until the offer or sale ceases. This suggests that Stretch Zone does monitor product sourcing to some extent.
To fully understand the obligations and restrictions regarding suppliers, a prospective Stretch Zone franchisee should ask the franchisor for clarification on whether they are required to exclusively use approved suppliers, and what the consequences are for using non-approved suppliers. This information is crucial for making an informed decision about investing in a Stretch Zone franchise.