Can the Guarantor delegate their obligations under the Stretch Zone Guaranty?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Successors and Assigns. The Guarantor cannot delegate any of his obligations under this Guaranty.
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 Stretch Zone's 2025 Franchise Disclosure Document, the Guarantor is explicitly prohibited from delegating their obligations under the Guaranty. This means that the person or entity providing the guarantee for the franchisee's obligations cannot transfer their responsibilities to another party.
This restriction ensures that Stretch Zone maintains a direct and unwavering line of responsibility with the original guarantor. It prevents the guarantor from circumventing their commitment by passing it on to someone else, who may be less capable or willing to fulfill the obligations. This provides Stretch Zone with a stable and reliable guarantee for the franchisee's performance.
For a prospective Stretch Zone franchisee, this condition means that if a guarantor is required as part of the franchise agreement, that guarantor must understand they cannot transfer this obligation to another party at a later date. The guarantee remains with them for the duration of the agreement, reinforcing the seriousness of the commitment they are making to support the franchisee's obligations.