Does a Stretch Zone franchisee have the right to grant a subfranchise?
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 granting subfranchises. The franchise agreement states clearly that a franchisee does not have the right to grant a subfranchise. This restriction is a standard practice in many franchise systems, as it allows the franchisor to maintain control over the brand and ensure consistent quality and standards across all locations.
This restriction means that a Stretch Zone franchisee cannot sell or transfer any portion of their franchise rights to another party, allowing that party to operate a Stretch Zone business under the original franchise agreement. The franchisee must personally manage and operate the Stretch Zone business or sell/transfer the franchise to a new franchisee approved by Stretch Zone.
This policy ensures that Stretch Zone maintains control over who operates its franchises and that all franchisees meet the company's standards and qualifications. A prospective franchisee should understand this restriction and be prepared to commit to the direct operation of their Stretch Zone business.