Does a Stretch Zone franchisee waive their rights to a jury trial under the Franchise Agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| 3. Interfere with our business or any of our other Franchise Businesses. These provisions are subject to state law. | ||
| r. Non-competition covenants after the franchise is terminated or expires1 | Subsection 13.1(a)(ii) | You may not, for 24 months after the end of your Franchise Agreement: 1. Influence any Business Associate of us to modify its relationship with us; 2. Have any involvement with any Competitive Business, within 50 miles of any Franchise Business then in operation or under contract; or 3. Interfere with our business or any of our other Franchise Businesses. These provisions are subject to state law. |
| s. Modification of the agreement | Sections 6.3, 13.1(e) and 19.2 | Your Franchise Agreement may not be modified without the consent of both you and us except: 1. We may change the contents of the Operations Manual; 2. We may modify the Business System; and 3. A court may modify any provision of your Franchise Agreement in accordance with applicable law. |
| t. Integration/merger clause | Section 19.14 | Only the terms of the Franchise Agreement and other written agreements are binding (subject to applicable state law). Nothing in the Franchise Agreement or in any other related written agreement is intended to disclaim the representations we made in this FDD. Any representations or promises outside the FDD and Franchise Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation1 | ARTICLE 17 | All disputes must be resolved first by informal dispute resolution and, if unsuccessful, by mediation and, if mediation is not successful, then by arbitration except claims involving: 1. The Intellectual Property; 2. Any lease or sublease of real property; 3. Your obligations upon termination or expiration of your Franchise Agreement; 4. Any transfers; 5. Matters involving claims of danger, health or safety; and 6. Requests for restraining orders, injunctions or similar procedures. You waive your rights to a jury trial and claims for punitive damages. |
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 does waive their rights to a jury trial. The FDD states that all disputes must initially undergo informal dispute resolution, then mediation, and finally arbitration if the prior steps are unsuccessful. However, there are exceptions to this process for claims involving intellectual property, leases, obligations upon termination or expiration, transfers, matters of health or safety, and requests for restraining orders or injunctions.
The dispute resolution process mandates that franchisees waive their right to a jury trial. This means that any disputes with Stretch Zone that proceed to arbitration will be decided by an arbitrator rather than a judge and jury. Additionally, franchisees also waive their rights to claim punitive damages.
This waiver is a significant legal consideration for prospective Stretch Zone franchisees. It is important to understand the implications of waiving the right to a jury trial and agreeing to resolve disputes through arbitration, as the arbitrator's decision is typically final and binding with limited options for appeal. Franchisees should consult with an attorney to fully understand their rights and obligations under the Franchise Agreement.