What must a Stretch Zone franchisee sign for each franchise they develop under the Area Development Agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
For each Stretch Zone Franchise you develop, you must sign our then-current form of Stretch Zone Franchise Agreement, which may differ from the Franchise Agreement included as Exhibit C, and pay the balance of the Initial Franchise Fee (if applicable). If you fail to timely achieve the Development Schedule, we may elect to terminate the Area Development Agreement. If we terminate the Area Development Agreement, you will have no right to develop and open additional Franchise Businesses under the Area Development Agreement. You may, however, keep your Franchised Units then developed or under construction, provided you are not in default under the applicable Franchise Agreements. The material terms of the then-current form of Stretch Zone Franchise Agreement may vary substantially from the Stretch Zone Franchise Agreement contained in Exhibit C. When you sign the Area Development Agreement, you also will sign the Franchise Agreement for your first Franchise Business to be developed under the Area Development Agreement.
Source: Item 1 — ITEM -1 THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 10–15)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, for each Stretch Zone franchise a developer opens under an Area Development Agreement, they must sign the then-current form of the Stretch Zone Franchise Agreement. This agreement may differ from the sample agreement included as Exhibit C in the FDD. The franchisee must also pay the balance of the initial franchise fee, if applicable.
Additionally, when signing the Area Development Agreement itself, the franchisee will also sign the Franchise Agreement for the first Stretch Zone location to be developed under the Area Development Agreement. If the developer fails to meet the development schedule outlined in the Area Development Agreement, Stretch Zone has the right to terminate the agreement, preventing the developer from opening further locations under it. However, the developer can keep any locations already developed or under construction, provided they are not in default of their franchise agreements.
Prospective Stretch Zone franchisees should carefully review the then-current form of the Stretch Zone Franchise Agreement before signing, as its terms may vary significantly from the sample agreement provided in the FDD. Franchisees should also be aware of the development schedule and the potential consequences of failing to meet it.