For Stretch Zone franchisees, what effect does a signed statement, questionnaire, or acknowledgment have regarding waiving claims under state franchise law?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 91–99)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee at the start of their franchise relationship will not waive claims under state franchise law. This includes claims of fraud in the inducement or disclaiming reliance on statements made by Stretch Zone or its representatives. This provision takes precedence over any conflicting terms in other franchise documents.
This protection ensures that franchisees retain their legal rights under state franchise laws, even if they have signed documents that might suggest otherwise. It prevents Stretch Zone from using standardized forms to inadvertently or intentionally limit a franchisee's ability to pursue legal action related to violations of franchise law. This is particularly important in cases where a franchisee believes they were misled or provided with inaccurate information during the franchise sales process.
This clause provides a safeguard for franchisees, ensuring they are not unknowingly relinquishing their legal rights. Prospective Stretch Zone franchisees should be aware of this protection, as it reinforces the importance of thorough due diligence and the ability to seek legal recourse if necessary. This protection is included in addenda for Illinois, Maryland, and Minnesota.