If an individual fails to complete the Stretch Zone Pre-Opening Training, what are the options available to Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Failure to Complete Pre-Opening Training. If any individual required to attend Pre-Opening Training fails to complete the applicable training program, as we reasonably determine, we may: (i) at your expense and direction, retrain the Trainee or train another Trainee; or (ii) elect to terminate this Agreement. If we elect to terminate this Agreement, we will retain the Initial Franchise Fee, and you must sign the Franchise Termination and Release Agreement included as Exhibit N to the FDD.
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 Stretch Zone's 2025 Franchise Disclosure Document, if any individual required to attend the Pre-Opening Training fails to complete the applicable training program, Stretch Zone has two options. First, Stretch Zone may choose to retrain the trainee or train another trainee, with the franchisee bearing the expense and direction of this retraining. Alternatively, Stretch Zone can elect to terminate the Franchise Agreement.
If Stretch Zone chooses to terminate the agreement due to the failure to complete the training program, the franchisee must sign the Franchise Termination and Release Agreement, which is included as Exhibit N to the FDD. Furthermore, Stretch Zone will retain the Initial Franchise Fee.
This clause highlights the importance of ensuring that all required personnel successfully complete the Pre-Opening Training. The potential loss of the initial franchise fee and termination of the agreement represent significant risks for a prospective Stretch Zone franchisee if training requirements are not met.