From whom must a Stretch Zone franchisee purchase the equipment, furniture, furnishings, and fixtures necessary to operate the Franchise Business?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 4.7 APPROVED SPECIFICATIONS AND SOURCES OF SUPPLY
- (a) Purchases from Us. You must purchase from us or our Approved Supplier the stretching tables, kits, bolsters and wedges and other items that we require if implemented on a Network-wide basis. We will charge you the same price that we charge all Franchisees. You will submit payment for orders and pay all shipping, handling and insurance costs to us in the manner and in accordance with the price schedule contained in the Operations Manual or otherwise provided in writing, which we may amend in our sole direction. You agree to pay us for all orders in accordance with our then-current payment terms and policies. Your orders are subject to our acceptance and we reserve the right to wholly or partially accept or reject any order you place. We reserve the right to: (i) deny or limit the amount of credit we will extend to you; (ii) suspend shipments; (iii) make shipments only after all prior orders shipped to you have been paid in full: or (iv) make shipments on a cash in advance, on a C.O.D. basis, or on any other terms which we deem appropriate.
- (b) Purchases from Designated Suppliers. You must purchase certain products or services solely from third party suppliers that we designate and from no other suppliers. ITEM 8 of the FDD discloses the current types of products and/or services and the names of our current Designated Suppliers.
- (c) Approved Suppliers. You must purchase or lease certain equipment, supplies, inventory, advertising materials, and other products and services used for the development and operation of your Franchise Business only from Authorized Suppliers. These Authorized Suppliers have demonstrated: (i) the ability to meet our standards and specifications for the specified items; and (ii) possess adequate quality controls and the capacity to supply your needs promptly and reliably. We will use our best reasonable efforts to negotiate agreements with Approved Suppliers
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 FDD, franchisees are required to purchase certain items from specific sources. Specifically, franchisees must purchase stretching tables, kits, bolsters, and wedges from Stretch Zone or their Approved Supplier if Stretch Zone implements this requirement on a Network-wide basis. The price charged to the franchisee will be the same price that Stretch Zone charges all franchisees. Franchisees are responsible for payment of orders, including all shipping, handling, and insurance costs, according to the price schedule in the Operations Manual or as otherwise provided in writing, which Stretch Zone may amend.
Stretch Zone maintains the right to accept or reject any order placed by a franchisee, either wholly or partially. Additionally, Stretch Zone reserves the right to deny or limit credit extended to the franchisee, suspend shipments, require full payment of prior orders before new shipments, or demand cash in advance or C.O.D. terms for shipments.
Furthermore, franchisees must purchase certain other products or services solely from third-party suppliers that Stretch Zone designates. The specific types of products and services, along with the names of the current Designated Suppliers, are detailed in Item 8 of the FDD. For other equipment, supplies, inventory, advertising materials, and services used in the development and operation of the franchise, franchisees must purchase or lease only from Authorized Suppliers. These Authorized Suppliers must demonstrate the ability to meet Stretch Zone's standards and specifications, possess adequate quality controls, and have the capacity to supply the franchisee's needs promptly and reliably. Stretch Zone states that it will use its best reasonable efforts to negotiate agreements with Approved Suppliers.