Is a Stretch Zone franchisee permitted to subfranchise or sublicense their rights under the Franchise Agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) No Subfranchising Rights. You have no right to grant a subfranchise.
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)
According to the 2025 Stretch Zone Franchise Disclosure Document, franchisees are explicitly prohibited from subfranchising. The agreement specifies that a franchisee has no right to grant a subfranchise.
This restriction means that a Stretch Zone franchisee must directly own and operate their franchise location. They cannot sell the rights to operate a portion of their franchise to another party. This is a common restriction in franchising, as franchisors typically want to maintain control over who is operating under their brand name to ensure quality and consistency.
While franchisees cannot subfranchise, they may be able to transfer their franchise to a new owner with Stretch Zone's consent, provided certain conditions are met. These conditions generally include providing written notice of the intent to transfer, submitting required information and documents, and ensuring the transferee meets Stretch Zone's qualifications.