If a Stretch Zone franchisee fails to cancel a conflicting name registration, what right does Stretch Zone have?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) De-Identification. You must immediately remove all identifying architectural superstructure and signage on, about or in the Premises bearing the name or logos of Stretch Zone (or any name or logo similar to Stretch Zone), in the manner we specify. You will hold all property belonging to us for delivery to us, at our expense, upon request. Any signage that you are unable to remove within 1 Business Day of the termination or expiration of this Agreement you must completely cover the signage until the time of their removal. If you fail or refuse to comply with this obligation, we have the right to enter the Premises, without being guilty of trespass or any other tort for the purpose of removing the signage and storing them at another location, at your reasonable expense (for signage not owned by us) payable by you on demand.
- (c) Notice to Customers. Until you complete all modifications and alterations required by this Section, you must maintain a conspicuous sign at the Premises in a form we specify stating that your business is no longer associated with our Business System. You also must advise all customers or prospective customers calling your new telephone number that your new business is no longer associated with our Business System.
- (d) Our Entry Right. If you fail or refuse to comply with the requirements of this Section, we have the right to enter upon the Premises to make all changes as may be required at your expense and at your sole risk. We have no responsibility for any actual or consequential damages to your property or others, and without liability for trespass or other tort or criminal act. You agree that your failure to make these alterations will cause us irreparable injury.
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)
Based on the 2025 Stretch Zone Franchise Disclosure Document, if a franchisee fails or refuses to comply with the requirements to remove identifying signage after termination or expiration of the agreement, Stretch Zone has the right to enter the premises. Stretch Zone can make all changes as may be required at the franchisee's expense and at the franchisee's sole risk.
Stretch Zone assumes no responsibility for any actual or consequential damages to the franchisee's property or others and has no liability for trespass or other tort or criminal act. The FDD states that the franchisee agrees that their failure to make these alterations will cause Stretch Zone irreparable injury.
This clause highlights the importance of franchisees adhering to the brand's standards and protecting its intellectual property, even after the franchise agreement ends. The ability for Stretch Zone to enter the premises and make necessary changes at the franchisee's expense underscores the franchisor's commitment to maintaining brand consistency and preventing potential confusion in the marketplace.