Does the Stretch Zone franchise agreement require the franchisee to make representations and warranties throughout the Initial Term?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The following acknowledgements apply to all franchisees and Franchised Units, except those that are subject to the state franchise disclosure laws in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin:
- (a) You have conducted an independent investigation of the business venture contemplated by this Agreement and recognize that it involves business risks and that your results will be largely dependent upon your own efforts and ability. You have reviewed this Agreement and the FDD. You have been accorded ample time to consult with, and ask questions of, our representatives and to consult with your own legal counsel and other advisors about the potential risks and benefits of entering into this Agreement, and we have advised you to do so.
- (b) You have no knowledge of any representations made about the Stretch Zone franchise opportunity by us, our Affiliates, or any of our or their officers, directors, owners, or agents that are contrary to the statements made in the FDD or to the terms and conditions of this Agreement. You are not relying on any representations or warranties, express or implied, provided by us or our representatives other than those expressly set forth in this Agreement and the FDD.
- (c) Except as may be stated in the FDD, neither we, nor any of our Affiliates, nor any of our or our Affiliates' officers, agents, employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Stretch Zone business or the anticipated revenues, earnings, or profitability of your Franchise Business or any other business operated by us, our licensees, our franchisees, or our Affiliates. Any information you have acquired from other Stretch Zone franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy.
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, franchisees, with the exception of those in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, or Wisconsin, acknowledge specific conditions related to their agreement. These acknowledgements are made at the time of signing the agreement, and the FDD does not specify that these representations and warranties are continually reaffirmed throughout the initial term.
Specifically, franchisees acknowledge that they have conducted an independent investigation of the Stretch Zone business venture, recognizing the inherent business risks and understanding that their success depends largely on their own efforts and abilities. They confirm they've had ample time to review the agreement and FDD, consult with representatives, seek legal counsel, and consider the potential risks and benefits.
Furthermore, franchisees warrant they have no knowledge of any representations made by Stretch Zone or its affiliates that contradict the FDD or the agreement's terms. They affirm they are not relying on any representations or warranties, express or implied, beyond what is explicitly stated in the agreement and the FDD. The document clarifies that Stretch Zone has not made any representations regarding historical or anticipated revenues, earnings, or profitability, except as stated in the FDD, and that Stretch Zone is not responsible for the accuracy of any information acquired from other Stretch Zone franchisees.