Can the Stretch Zone Guaranty be changed or modified orally?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
is ineffective and is a material breach of this Agreement giving us the right to terminate this Agreement without affording you an opportunity to cure.
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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, the Stretch Zone Development Agreement, which includes the Guaranty, can only be amended, supplemented, or modified by a written agreement that is signed by all parties involved.
This means that any verbal agreements or promises made that contradict or alter the terms of the original written agreement, including the Guaranty, are not legally binding. The written agreement serves as the definitive and enforceable document outlining the obligations and rights of both Stretch Zone and the franchisee.
For a prospective Stretch Zone franchisee, this underscores the importance of carefully reviewing and understanding all the terms and conditions outlined in the written agreement and its exhibits, such as Exhibit G, which contains the current version of the Guaranty. Any desired changes or modifications must be documented in writing and formally agreed upon by all parties to be valid and enforceable. This protects both the franchisor and franchisee by ensuring clarity and preventing misunderstandings or disputes based on oral representations.