What is the Stretch Zone franchisee's obligation regarding site selection near existing units?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
For the perimeter of the Development Area, you agree that you will not select a site that is within the limited protected territory of a Company-Owned Unit or Franchised Unit that is operating or under construction.
We must approve the location for all future Franchised Units that you develop and the Limited Protected Territory (to be granted under the applicable franchise agreement) for each of these Franchised Units. Our then current standards for sites and territories will apply.
If you lease the Premises and the lease expires or terminates before the expiration of the Franchise Agreement (provided termination is not due to your default), we permit
you 30 days to obtain new Premises within your Limited Protected Territory. The relocated Premises must not infringe upon the Limited Protected Territory of a Company-Owned Unit or another Franchised Unit then operating or under development. We must approve the new location in writing in accordance with Section 2.1 of the Franchise Agreement.
Casualty. If the Premises are substantially destroyed by fire or other casualty, we permit you 30 days to obtain new Premises within your Limited Protected Territory. The relocated Premises must not infringe upon the Limited Protected Territory of a Company-Owned Unit or another Franchised Unit then operating or under development. We must approve the new location in writing in accordance with Section 2.1 of the Franchise Agreement.
Condemnation. You will give us notice of any proposed taking of the Premises by eminent domain, as soon as possible. We permit you 30 days from the date you have to vacate the Premises to obtain new Premises within your Limited Protected Territory. The relocated Premises must not infringe upon the Limited Protected Territory of a Company-Owned Unit or another Franchised Unit then operating or under development. We must approve the new location in writing in accordance with Section 2.1 of the Franchise Agreement.
You will not receive an exclusive territory. You may face competition from other Franchised Units, Company-Owned Units, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — ITEM -12 TERRITORY (FDD pages 54–58)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, franchisees operating under an Area Development Agreement must ensure that the site they select for a new location is not within the limited protected territory of an existing Company-Owned Unit or Franchised Unit that is already operating or under construction. This restriction applies to the perimeter of the Development Area. For all future Franchised Units that a developer builds, Stretch Zone must approve the location and the Limited Protected Territory granted under the franchise agreement. Stretch Zone's current standards for sites and territories will be used for approval.
If a Stretch Zone franchisee needs to relocate their business due to lease expiration, casualty, or condemnation, they have a limited time (30 days) to find new premises within their Limited Protected Territory. The relocated premises must not infringe upon the Limited Protected Territory of a Company-Owned Unit or another Franchised Unit that is operating or under development. The new location is subject to Stretch Zone's written approval.
Outside of these specific stipulations, Stretch Zone franchisees should be aware that they do not receive an exclusive territory. They may face competition from other Franchised Units, Company-Owned Units, other channels of distribution, or competitive brands that Stretch Zone controls. Stretch Zone retains the right to operate or franchise similar businesses under different trademarks, potentially creating competition for franchisees.