Are the franchise agreement provisions for Stretch Zone, including those summarized in Item 17 of the Franchise Disclosure Document, subject to state law?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
MINNESOTA ADDENDUM TO FRANCHISE AGREEMENT
This Addendum to Franchise Agreement is signed on between Stretch Zone Franchising, LLC, a Florida limited liability company ("us" 'we" and "our") and ("you" or "your") to amend the Franchise Agreement as follows:
- Section 3.1 of the Franchise Agreement is amended as follows:
INITIAL FEES
All fees paid to the Franchisor by the Franchisee, including payments for goods and services received from the Franchisor before the business opens, shall be deferred pending satisfaction of all of the Franchisor's pre-opening obligations to the Franchisee.
The Commissioner of Commerce for the State of Minnesota requires that certain provisions contained in the Franchise Agreement be amended to be consistent with the Minnesota Franchise Act, Minn.
Stat. §§ 80.01 et seq.,(the "Minnesota Franchise Act") and of the Rules and Regulations promulgated under the Minnesota Franchise Act.
To the extent that the Franchise Agreement contains provisions that are inconsistent with the following, the provisions are amended:
- (a) Minnesota Statutes, Section 80C.21 and
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 Franchise Disclosure Document, the franchise agreement provisions are subject to state law, particularly in states with franchise disclosure laws. For instance, the Minnesota Addendum to the Franchise Agreement explicitly states that the Commissioner of Commerce for the State of Minnesota requires certain provisions to be amended to comply with the Minnesota Franchise Act. This act ensures that the franchise agreement aligns with Minnesota law, especially concerning franchisee rights and franchisor obligations.
Specifically, Minnesota Statutes, Section 80C.21, addresses issues such as litigation venues, jury trial waivers, and consent to liquidated damages, termination penalties, or judgment notes, ensuring these aspects are consistent with Minnesota law. The addendum also clarifies that nothing in the Franchise Disclosure Document or agreements can reduce a developer's rights under Minnesota Statutes, Chapter 80C, or their rights to procedures, forums, or remedies provided by the jurisdiction's laws. This indicates a clear intention to protect franchisees' rights within the legal framework of Minnesota.
Furthermore, Stretch Zone commits to complying with Minnesota Statutes, Section 80C.14, Subd. 3-5, regarding termination and non-renewal notices, as well as the consent to the transfer of development rights. This compliance ensures that Stretch Zone provides franchisees in Minnesota with adequate notice periods for termination (90 days with 60 days to cure) and non-renewal (180 days), and that the consent to transfer development rights will not be unreasonably withheld. These stipulations reflect the brand's adherence to state-specific franchise laws, providing a level of legal protection and clarity for franchisees operating in Minnesota.