After the Stretch Zone franchise is terminated or expires, for how long are non-competition covenants in effect?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| 3. Interfere with our business or any of our other Franchise Businesses. These provisions are subject to state law. | ||
| r. Non-competition covenants after the franchise is terminated or expires1 | Subsection 13.1(a)(ii) | You may not, for 24 months after the end of your Franchise Agreement: 1. Influence any Business Associate of us to modify its relationship with us; 2. Have any involvement with any Competitive Business, within 50 miles of any Franchise Business then in operation or under contract; or 3. Interfere with our business or any of our other Franchise Businesses. These provisions are subject to state law. |
Source: Item 17 — ITEM -17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 65–73)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, franchisees are subject to non-competition covenants for a period of 24 months after the termination or expiration of their Franchise Agreement. During this 24-month period, the franchisee is restricted from engaging in certain activities that could be detrimental to Stretch Zone.
Specifically, the franchisee cannot influence any Business Associate of Stretch Zone to modify their relationship with the company. They are also prohibited from having any involvement with any Competitive Business within 50 miles of any Stretch Zone Franchise Business that is currently in operation or under contract. Additionally, franchisees are barred from interfering with Stretch Zone's business or any of its other Franchise Businesses.
It's important to note that these non-competition provisions are subject to state law, which means the enforceability and specific terms may vary depending on the jurisdiction. Prospective franchisees should carefully review these covenants and understand their implications, as they could significantly impact their ability to pursue related business ventures after leaving the Stretch Zone franchise system.