When must a Stretch Zone franchisee designate a Designated Representative?
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.
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 two or more individuals or by a Business Entity, the franchisee must designate in writing one individual or a Franchise Owner as the Designated Representative upon signing the Franchise Agreement. Stretch Zone retains 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.
This requirement ensures that Stretch Zone has a clear point of contact for the franchise. By designating a representative, especially when the franchise is owned by multiple individuals or a business entity, Stretch Zone aims to streamline communication and decision-making processes. This is a common practice in franchising, as it simplifies interactions between the franchisor and franchisee, ensuring that directives and information are properly conveyed and acted upon.
For a prospective Stretch Zone franchisee, this means that if you are entering into the agreement with partners or as a business entity, you must identify the Designated Representative immediately. This person will be the primary contact for Stretch Zone, and it is crucial to choose someone who is well-informed and capable of making decisions on behalf of the franchise. Any changes to the Designated Representative must be formally communicated in writing to Stretch Zone to maintain clarity and avoid confusion.