factual

If a Stretch Zone franchisee proposes to purchase from an unapproved supplier, what must they submit for approval?

Stretch_Zone Franchise · 2025 FDD

Answer from 2025 FDD Document

pplied based on our experience. Except for items you must purchase from us, as described above, neither we nor any of our Affiliates are Approved Suppliers.

RELATED SUPPLIERS

Our Chief Information Officer, Keith Trawick, holds a majority interest in one of our software licensors, KnetK LLC; otherwise, no officer of ours has an ownership interest in any third-party supplier.

APPROVAL OF ALTERNATE SUPPLIERS

Criteria. Our criteria for alternate supplier approval are not available to you.

Contact with Alternate Suppliers. If you propose to purchase or lease any equipment, supplies, inventory, advertising materials, construction services or other products or services that

are not proprietary to us or an Affiliate from an unapproved supplier, you must submit to us a written request for approval, or request the supplier to do so itself.

Procedures for Our Approval. We have the right to require, as a condition of our approval, that the supplier permit our representatives to inspect its facilities. If we request, the supplier will deliver samples to us or to our designated independent, certified laboratory for testing. We are not liable for damage to any sample that may result from the testing process.

Fees. You will pay a charge not to exceed the reasonable cost of the inspection and the actual cost of the testing (estimated to range from $250 to $1,500). We may also require as a condition to its approval, that the supplier present satisfactory evidence of insurance, for example, product liability insurance, protecting our Franchisees and us from all claims from the use of the item within the Business System.

Time Period for Notices. We will give you written notice of our approval or disapproval by regular mail withi

Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)

What This Means (2025 FDD)

According to Stretch Zone's 2025 Franchise Disclosure Document, if a franchisee wants to purchase equipment, supplies, inventory, advertising materials, construction services, or other products/services (excluding those proprietary to Stretch Zone) from a supplier not already approved, they must submit a written request for approval. This request can be submitted either by the franchisee or by the supplier themselves.

Stretch Zone has the right to inspect the supplier's facilities as a condition of approval. They can also request the supplier to provide samples for testing at an independent, certified laboratory. The franchisee is responsible for covering the costs associated with the inspection and testing, which are estimated to range from $250 to $1,500. Additionally, Stretch Zone may require the supplier to provide evidence of adequate insurance, such as product liability insurance, to protect Stretch Zone and its franchisees from potential claims.

Stretch Zone will provide written notice of approval or disapproval within 10 days after all testing is complete and other conditions are met. However, Stretch Zone retains the right to reinspect the facilities and products of any approved supplier and to sample the products at the supplier's expense. Approval can be revoked if the supplier fails to continue meeting Stretch Zone's standards and specifications, with written notification of approval or disapproval of a supplier provided within 7 days after investigation and inspection.

This process ensures that Stretch Zone maintains control over the quality and standards of products and services used within its franchise system, even when franchisees seek alternative suppliers. While it provides franchisees with some flexibility, it also imposes costs and potential delays associated with the approval process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.