For a Stretch Zone franchise, are franchisees restricted to operating their franchise business solely at the premises described in Section 18.1?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
You may use the Intellectual Property only in accordance with standards and specifications we reasonably determine and implement on a Network-wide basis. You agree that:
(a) Limitation on Use. You will use the Intellectual Property only for the operation of your Franchise Business at the Premises.
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 are limited to operating their franchise business at the specific premises outlined in the agreement. Section 5.2(a) of the FDD, titled "YOUR USE OF THE INTELLECTUAL PROPERTY," clearly states that franchisees will use the Intellectual Property only for the operation of their Franchise Business at the Premises.
This restriction means that a Stretch Zone franchisee cannot conduct business operations from any location other than the approved premises. This includes, but is not limited to, operating a mobile service, setting up temporary locations, or conducting business from a personal residence. The franchisee's use of Stretch Zone's intellectual property, including trademarks and business systems, is explicitly tied to the approved physical location.
The landlord agreement also reinforces this restriction. According to the FDD, the landlord and the tenant/franchisee agree that the tenant/franchisee may only use the Premises for the operation of the Franchised Business, unless Stretch Zone otherwise approves in writing. This clause ensures that the use of the premises aligns with the franchisor's brand standards and operational guidelines. Any deviation from this requirement would need explicit written consent from Stretch Zone.
This location restriction is a common practice in franchising, as it allows Stretch Zone to maintain quality control and brand consistency across all franchise locations. Prospective franchisees should carefully consider the implications of this restriction, ensuring that the approved premises meet their business needs and growth expectations, as any expansion or relocation would require the franchisor's approval.