What is the geographic limit for relocating a Stretch Zone franchise after a casualty?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) 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. During the period when your Franchise Business is not in operation due to the relocation of the Premises, you are not required to spend the minimum Local Advertising Contributions. You have 60 days from the date you sign the new lease in which to open and begin operating the Franchise Business, unless we otherwise agree in writing to extend the time. Your failure to secure a new location and begin operation within the specified times is an Event of Default on your part.
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 FDD, if a Stretch Zone franchise location is substantially destroyed by fire or other casualty, the franchisee is permitted 30 days to find a new location. The new location must be within the franchisee's Limited Protected Territory.
The relocated premises cannot infringe upon the Limited Protected Territory of a Company-Owned Unit or another Franchised Unit that is already operating or under development. Stretch Zone must provide written approval of the new location.
During the period the franchise is not operating due to relocation, the franchisee is not required to spend the minimum Local Advertising Contributions. The franchisee has 60 days from the date they sign a new lease to open and begin operating the franchise, unless Stretch Zone agrees to extend the time in writing. Failure to secure a new location and begin operation within the specified time frame constitutes an Event of Default on the franchisee's part.