What happens if the Stretch Zone Regional Manager fails to satisfy their obligations?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Regional Manager fails to satisfy his or her obligations provided in Subsection 4.6(c) of the Franchise Agreement due to death, disability, termination of
employment or for any other reason, you, your Designated Representative, or a Franchise Owner will satisfy these obligations until you designate a new Regional Manager who has successfully completed our then-current training requirements (for which you must pay us the applicable training fees). You are solely responsible for the expenses associated with training any replacement Regional Manager, including the then-prevailing standard training fees we charge.
Source: Item 15 — ITEM -15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 62–64)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, if the Regional Manager fails to meet their obligations as outlined in Subsection 4.6(c) of the Franchise Agreement due to circumstances such as death, disability, termination of employment, or any other reason, the franchisee, their Designated Representative, or another Franchise Owner must step in to fulfill those responsibilities. This interim arrangement continues until a new Regional Manager is appointed who has successfully completed Stretch Zone's current training requirements.
The franchisee is responsible for all expenses associated with training the replacement Regional Manager, including the standard training fees charged by Stretch Zone at that time. This ensures that the franchise business maintains consistent operational standards and management oversight even during transitions in personnel.
This requirement highlights the importance of having contingency plans for key personnel. Franchisees should consider the potential costs and time involved in training a new Regional Manager, and factor this into their operational planning and budget. It also emphasizes the need for the franchisee or their designated representative to be knowledgeable and capable of managing the business in the absence of the Regional Manager.