Can a Stretch Zone franchisee engage a discounting company?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
e was unknown to you except through our disclosure and that the marketing practices and operating procedures we develop and franchise to you for the operation of the Franchise Business are important for the success of the Business System. If you receive any Confidential Information after signing this Agreement, and you do not object in writing to us within 30 days after signing this Agreement that any of the information comprising the Confidential Information not be considered Confidential Information, then you have irrevocably waived your right to make any objection. You agree that this representation and warranty is a material inducement for us to enter into this Agreement, and any breach is an Event of Default on your part.
ARTICLE 7 - ADVERTISING
Recognizing the value of advertising, and the importance of the standardization of advertising programs to the goodwill and public image of the Business System, the parties agree to the following provisions.
Section 7.1 LOCAL ADVERTISING
(a) Your Expenditures. You must spend a minimum of $2,000 per month on Local Advertising of your Franchised Business within your DMA.
- (b) Our Approval. You must submit to us for our approval all materials used for Local Advertising, unless we have previously approved the materials or the materials consist of materials we have provided. All materi
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)
Based on the 2025 Stretch Zone FDD excerpts, there is no explicit mention of whether a franchisee can engage a discounting company. However, the FDD does state that franchisees must spend a minimum of $2,000 per month on local advertising within their DMA (Designated Market Area). All materials used for local advertising must be submitted for approval, unless they have been previously approved or consist of materials provided by Stretch Zone.
Additionally, the FDD states that franchisees cannot engage in social media concerning the franchise business without prior written consent from Stretch Zone, and they must purchase social media management software from a designated supplier. All content on the franchisee's social media regarding Stretch Zone belongs to the company.
Since the FDD excerpts do not directly address the use of discounting companies, it would be prudent for a prospective Stretch Zone franchisee to directly ask the franchisor about the permissibility and guidelines for engaging with such companies to ensure compliance with Stretch Zone's policies and to understand any potential restrictions or requirements.