If Stretch Zone identifies deficiencies in an evaluation report, what action must I take?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
2, 10.3, and 10.4, except for a transfer in accordance with Section 10.2(b), you will pay us a fee in the amount of $10,000 (the "Transfer Fee").
- (h) Renewal Fee. Shortly before the expiration of the Initial Term, if you decide to obtain a Renewal Franchise Agreement in accordance with Subsection 16.2(a), you must pay us a Renewal Fee equal to 50% of the then-current Initial Franchise Fee.
- (i) Our Attorneys' Fees. If after the Franchise Agreement is signed by the parties: (i) you request our written consent to any action of yours and we consult our attorney; or (ii) we have our attorney prepare a letter, a Notice of Default or a Notice of Termination to you, then you agree to reimburse us for our attorneys' fees and costs under these circumstances.
- (j) Fines for Non-Compliance. If we find you to be in violation of certain terms of this Agreement constituting a material default by you that would entitle us to terminate the Franchise Agreement, we will send you a letter setting forth the nature of the non-complying act and what steps you must take to cure the violation. We will also impose a fine of $250, provided that, if the default involves the offer or sale of unauthorized or prohibited products, the fine is $500 per day until you
cease such offer or sale.
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, if you receive an inspection report that reveals a material violation of Stretch Zone's operating standards, it constitutes an act of non-compliance. In such a case, Stretch Zone will send you a letter detailing the non-complying act and the steps you must take to correct the violation.
In addition to outlining the necessary corrective actions, Stretch Zone will impose a fine of $250 for the violation. You are required to immediately correct the violation and pay the fine within 10 days of receiving the notice of non-compliance. Failure to both correct the violation and pay the fine within the specified timeframe may result in Stretch Zone exercising its rights under Article 11 of the franchise agreement, which likely pertains to further penalties or termination.
This clause highlights the importance of adhering to Stretch Zone's operating standards and addressing any identified deficiencies promptly to avoid fines and potential further action from the franchisor. As a prospective franchisee, it is crucial to understand and comply with these standards to maintain a good standing with Stretch Zone and ensure the continued operation of your franchise.