Must a Stretch Zone franchisee provide written notice to Stretch Zone before transferring their franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
to state law, any informal dispute resolution, | | | | mediation or arbitration proceeding must be conducted | | | | where our principal office is located when the demand is | | | | requested. Any litigation to enforce the Area | | | | Development Agreement must be filed in the courts | | | | where our principal office is located when litigation is | | | | filed (currently Broward County, Florida). | | w. Choice of law1 | Section 9.1 | Except to the extent governed by the United States | | | | Trademark Act of 1946, the United States Copyright Act | | | | or the United States Arbitration Act, , and subject to | | | | applicable state law, the Development Agreement is | | | | interpreted under the laws of Florida. |
| Provision | Section in Franchise Agreement | Summary |
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Source: Item 17 — ITEM -17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 65–73)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, a franchisee is required to provide written notice to Stretch Zone when transferring their franchise. This is one of the conditions that must be met for Stretch Zone to approve the transfer.
Specifically, the FDD outlines several steps a franchisee must take to gain approval for a transfer. Besides providing written notice, Stretch Zone must not exercise its right of first refusal, and the franchisee must not be in default under any agreement with Stretch Zone or its affiliates. The potential transferee must also complete the application procedures to Stretch Zone's satisfaction, and Stretch Zone must interview and approve the transferee.
Furthermore, the transferee is required to sign a new franchise agreement, which may contain terms and conditions that differ from the original agreement. A transfer fee of $10,000 must be paid by either the franchisee or the transferee. The transferee must also assume all of the franchisee's obligations, including the lease, and both parties must sign a Franchise Termination and Release Agreement. Finally, the transferee needs to successfully complete Stretch Zone's Franchisee Training Program and any other current training requirements. All parties must also sign Stretch Zone's transfer form.