For a Stretch Zone franchise, what is the required use of the premises?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Use of Premises. The Landlord and the Tenant/Franchisee agree that the Tenant/Franchisee may only use the Premises for the operation of the Franchised Business, unless the Franchisor otherwise approves in writing. The Landlord agrees that the Tenant/Franchisee may sell all products and/or provide all services that are part of the Franchisor's Business System now or hereafter changed. The Landlord acknowledges that this use does not violate any zoning restrictions, restrictive covenants or existing exclusive uses granted to any other tenant of the Landlord in the building/center or adjacent outparcel owned by the Landlord in which the Premises are located. The Landlord further acknowledges that during the term of the Lease or any extension of the Lease, the Landlord will not lease space within the building/center or outparcel to a business similar to the Franchised Business, or permit an existing tenant to offer products that compete with the Franchised Business. Competitive business means any business that operates, or franchises or licenses others to
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 Stretch Zone's 2025 Franchise Disclosure Document, the franchisee is generally required to use the premises solely for the operation of the franchised business. Specifically, the lease agreement between the landlord and the franchisee stipulates that the premises can only be used for operating the Stretch Zone franchise, unless Stretch Zone approves otherwise in writing. This means a franchisee cannot operate any other type of business from the location without explicit permission from Stretch Zone.
This restriction ensures that the Stretch Zone brand and business model are consistently presented across all franchise locations. It also protects the franchisor's interest by preventing franchisees from engaging in activities that could dilute the brand or compete with the core business. The landlord also agrees not to lease space to any business similar to Stretch Zone or allow existing tenants to offer competing products.
Upon termination or expiration of the franchise agreement, if the franchisee remains in possession of the premises, they are only allowed to operate a business that does not violate the non-compete agreement. The franchisee must also make immediate modifications to distinguish the appearance of the premises from other Stretch Zone locations, including removing all Stretch Zone signage and logos. This ensures that the public is not misled into thinking the business is still associated with the Stretch Zone brand.