Can a Stretch Zone franchisee recruit or hire employees from other Stretch Zone units?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Business Associate" means any of our employees, officers, directors, agents, consultants, representatives, contractors, suppliers, distributors, franchisees or other business contacts.
Section 4.5 HIRING AND APPEARANCE OF EMPLOYEES
- (a) Your Employment Decisions. You will maintain a competent, conscientious staff and employ the minimum number of employees necessary to meet the anticipated volume of business. You must have at least 1 Certified Stretch Zone Practitioner working when the business is open for business. You will obtain a Background Screening report of all employees and independent contractors for each person before hiring or retaining the person and supply us with a copy of the report. The Operations Manual includes our specifications for uniforms for your employees that you purchase directly from our Designated Supplier. You will take all steps necessary to ensure that your employee
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)
The 2025 Stretch Zone FDD does not explicitly state whether a franchisee can recruit or hire employees from other Stretch Zone units. However, the FDD does define a "Business Associate" as including, among other entities, Stretch Zone franchisees. This definition may imply some form of business relationship or interaction between franchisees, but it does not clarify the permissibility of recruiting or hiring employees from other units.
Section 4.5(a) of the FDD states that franchisees are responsible for maintaining a competent staff and employing the minimum number of employees necessary to meet the anticipated volume of business. It also requires franchisees to obtain a Background Screening report of all employees and independent contractors before hiring or retaining them and to supply a copy of the report to the franchisor. This section focuses on the franchisee's responsibilities in hiring and managing their own staff but does not address the issue of recruiting from other franchises.
Without explicit information in the FDD, it is important for a prospective Stretch Zone franchisee to seek clarification from the franchisor regarding the company's policy on recruiting or hiring employees from other Stretch Zone units. Understanding this policy is crucial for workforce planning and ensuring compliance with franchise agreements.