How will a Stretch Zone franchisee be notified if a product or service is disapproved?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
2, 10.3, and 10.4, except for a transfer in accordance with Section 10.2(b), you will pay us a fee in the amount of $10,000 (the "Transfer Fee").
- (h) Renewal Fee. Shortly before the expiration of the Initial Term, if you decide to obtain a Renewal Franchise Agreement in accordance with Subsection 16.2(a), you must pay us a Renewal Fee equal to 50% of the then-current Initial Franchise Fee.
- (i) Our Attorneys' Fees. If after the Franchise Agreement is signed by the parties: (i) you request our written consent to any action of yours and we consult our attorney; or (ii) we have our attorney prepare a letter, a Notice of Default or a Notice of Termination to you, then you agree to reimburse us for our attorneys' fees and costs under these circumstances.
- (j) Fines for Non-Compliance. If we find you to be in violation of certain terms of this Agreement constituting a material default by you that would entitle us to terminate the Franchise Agreement, we will send you a letter setting forth the nature of the non-complying act and what steps you must take to cure the violation. We will also impose a fine of $250, provided that, if the default involves the offer or sale of unauthorized or prohibited products, the fine is $500 per day until you
cease such offer or sale.
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 Franchise Disclosure Document, if a franchisee offers or sells unauthorized or prohibited products, Stretch Zone will send a letter outlining the non-complying act and the steps required to correct the violation.
In addition to the notification letter, Stretch Zone will impose a fine of $500 per day until the franchisee ceases the offer or sale of such unauthorized products. The franchisee must correct the violation and pay the fine within 10 days of receiving the notice. Failure to do so gives Stretch Zone the right to exercise its rights under ARTICLE 11 of the franchise agreement.
This notification process ensures that Stretch Zone franchisees are informed of any non-compliance issues related to unauthorized products or services and have a defined period to rectify the situation before further action is taken. This is a fairly standard practice in franchising, allowing franchisors to maintain brand consistency and quality control across all franchise locations.