For a Stretch Zone franchise operated by a Business Entity, what role must be designated?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Franchise Agreement is signed by 2 or more individuals or by a Business Entity, you agree to designate in writing 1 individual or a Franchise Owner as the Designated Representative upon signing the Franchise Agreement. We have the right to rely solely on instructions of the Designated Representative concerning the operation of the Franchise Business until we receive a duly signed written notice changing the Designated Representative.
You must designate an individual to serve as your Regional Manager. We anticipate that you or your Designated Representative will serve as your Regional Manager; however, you may hire another individual to serve as your Regional Manager. The Regional Manager must complete our then-current training requirements to our satisfaction.
The Regional Manager must devote his or her best reasonable full-time efforts to the management and operation of your Franchise Business. You agree that your Franchise Business requires the day-to-day supervision of the Regional Manager at all times your Franchise Business is open for business. The Regional Manager must complete our Regional Manager Training Program (including our Stretch Practitioner Training Program) and Sales Associate Training Program before managing your Franchise Business, unless we otherwise agree in writing.
If the Regional Manager fails to satisfy his or her obligations provided in Subsection 4.6(c) of the Franchise Agreement due to death, disability, termination of
employment or for any other reason, you, your Designated Representative, or a Franchise Owner will satisfy these obligations until you designate a new Regional Manager who has successfully completed our then-current training requirements (for which you must pay us the applicable training fees). You are solely responsible for the expenses associated with training any replacement Regional Manager, including the then-prevailing standard training fees we charge.
Source: Item 15 — ITEM -15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 62–64)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, if the Franchise Agreement is signed by a Business Entity, the franchisee must designate an individual or a Franchise Owner as the Designated Representative upon signing the Franchise Agreement. Stretch Zone has the right to rely solely on the instructions of the Designated Representative concerning the operation of the franchise business until they receive a duly signed written notice changing the Designated Representative.
In addition to the Designated Representative, a Stretch Zone franchisee must designate an individual to serve as the Regional Manager. The Regional Manager must devote his or her best reasonable full-time efforts to the management and operation of the franchise business and requires day-to-day supervision at all times the Franchise Business is open. The franchisee or the Designated Representative can serve as the Regional Manager; however, the franchisee may hire another individual to serve as Regional Manager.
The Regional Manager must complete Stretch Zone's Regional Manager Training Program (including the Stretch Practitioner Training Program) and Sales Associate Training Program before managing the Franchise Business, unless Stretch Zone otherwise agrees in writing. If the Regional Manager fails to satisfy obligations due to certain circumstances, the franchisee, Designated Representative, or a Franchise Owner will satisfy these obligations until a new Regional Manager is designated and has completed the required training. The franchisee is responsible for the expenses associated with training any replacement Regional Manager, including the then-prevailing standard training fees.