What happens if a Stretch Zone franchisee's lease expires before the Franchise Agreement's expiration?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Loss of Lease. 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. 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 a 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 12 — ITEM -12 TERRITORY (FDD pages 54–58)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, if a franchisee's lease expires or terminates before the Franchise Agreement's expiration (and the termination isn't due to the franchisee's default), Stretch Zone allows the franchisee 30 days to secure new premises within their Limited Protected Territory. The new location must be approved by Stretch Zone and must not infringe upon the Limited Protected Territory of any Company-Owned or other Franchised Units that are already operating or under development.
During the relocation period when the Franchise Business is not operational, the franchisee is not required to meet the minimum Local Advertising Contributions. The franchisee has 60 days from the date of signing a new lease to open and begin operating the Franchise Business, although Stretch Zone may agree to extend this timeframe in writing.
Failure to secure a new location and resume operations within the specified time frame constitutes an Event of Default on the franchisee's part. This means Stretch Zone could take action against the franchisee for not meeting their obligations under the Franchise Agreement. This clause protects Stretch Zone by ensuring franchisees maintain continuous operation and uphold brand standards, while also providing franchisees a limited time to relocate and resume business without certain financial obligations.