For a Stretch Zone franchise, is personal 'on-premises' participation by a Franchise Owner required?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not our employee. You are your own boss running your own business subject to our rights under your Franchise Agreement. You acknowledge and agree that your Franchise Business is not a "passive" investment. We recommend that you be active in the operation of your Franchise Business, but we do not require any personal "on-premises" participation by you. As discussed
below, however, you must designate an individual to serve as your Regional Manager. You must also have at least one Certified Stretch Zone Practitioner. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual, regardless of whether you choose to operate the Franchise Business as a full-time owner/operator or hire another individual to serve as your Regional Manager.
If you are a Business Entity, we recommend that one or more of the Franchise Owners participate personally in the direct operation of the Franchise Business, but we do not require any personal "on-premises" participation by a Franchise Owner. As discussed below, however, you must designate an individual to serve as your Regional Manager. At least one person must be a Certified Stretch Zone Practitioner. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual, regardless of whether you choose to operate the Franchise Business as a full-time owner/operator or hire another individual to serve as your Regional Manager. Under the Franchise Agreement and the Area Development Agreement, each owner of a direct or indirect interest in you of 20% or more must sign the applicable Guaranty attached as Exhibit G, under the terms of which those owners promise to be personally bound, jointly and severally, by all of the applicable agreement's provisions. In addition, at our request, the spouse of each guaranteeing owner (as applicable) will execute the Guaranty.
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, personal 'on-premises' participation by a franchisee is not required. While Stretch Zone recommends that franchisees be active in the operation of their franchise, it is not mandatory. However, the franchisee must designate an individual to serve as the Regional Manager and have at least one Certified Stretch Zone Practitioner.
Even if the franchisee chooses not to be actively involved on-premises, they remain solely liable and responsible for the franchise's operation, ensuring it adheres to the Franchise Agreement and Operations Manual. This responsibility holds whether the franchisee operates the business full-time or hires a Regional Manager.
If the franchise is owned by a business entity, Stretch Zone recommends that at least one of the franchise owners participates directly in the business's operation, but, again, it is not a requirement. The business entity must also designate a Regional Manager and have at least one Certified Stretch Zone Practitioner. Furthermore, any individual owning 20% or more of the business entity must sign a Guaranty, potentially requiring their spouse to do so as well, binding them to the agreement's provisions.