Is a Stretch Zone franchisee allowed to sell items for redistribution or resale?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
You must sell or offer for sale only the products and services that meet our uniform standards of quality and quantity, and we have expressly approved for sale in the Operations Manual or otherwise in writing at retail to customers from your Franchise Business. You may not sell any items for redistribution or resale. You must: (i) offer for sale all approved products and services; (ii) refrain from any deviation from our standards and specifications for providing or selling the approved products and services without our written consent; and (iii) discontinue selling and offering for sale any product or service as we, in our discretion, disapprove in writing. We have the right to change the authorized products and services at any time based on our experience.
We do not restrict you in the type of customers to whom you may sell approved products or services. We may suggest but do not dictate the prices you charge for the products you sell the services you render. All your sales must be retail sales occurring at the Premises. You must not sell any items for redistribution or resale. You will not solicit business outside your DMA by a tollfree number, catalog, direct mail, Internet, website or other advertising or solicitation method without our prior written consent.
Source: Item 16 — ITEM -16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, franchisees are explicitly restricted from selling items for redistribution or resale. The FDD states that franchisees must only sell or offer for sale products and services that meet Stretch Zone's uniform standards and have been expressly approved for retail sale to customers from the franchise business.
This restriction ensures that Stretch Zone maintains control over its brand and the quality of products and services offered under its name. It prevents franchisees from undermining the brand by sourcing or selling unapproved items. This is a common practice in franchising, where consistency and quality control are paramount.
Furthermore, the FDD emphasizes that all sales must be retail sales occurring at the premises. This reinforces the prohibition against selling items for redistribution or resale, as such activities would typically involve sales to intermediaries rather than direct retail customers. Franchisees are also restricted from soliciting business outside their designated market area without prior written consent from Stretch Zone, further limiting their ability to engage in redistribution activities.