If a Stretch Zone Regional Manager fails to satisfy their obligations, who is responsible for satisfying those obligations until a new Regional Manager is designated?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Replacement Regional Manager Training. 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 of any replacement Regional Manager, including the then-prevailing standard training fees we charge. [Subsection 4.6(d) of the Franchise Agreement.]
Source: Item 23 — ADVERTISING RECEIPTS AND EXPENDITURES FOR FISCAL YEAR 2024 (FDD pages 44–54)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, if a Regional Manager is unable to fulfill their obligations, the franchisee, their Designated Representative, or another Franchise Owner must step in to fulfill those responsibilities. This obligation continues until a new Regional Manager is appointed and has successfully completed the required training.
This means that if the Regional Manager leaves, becomes disabled, or is otherwise unable to perform their duties, the franchisee must ensure that someone is in place to cover those responsibilities. This could involve the franchisee themselves, a designated representative, or another franchise owner taking on the role temporarily.
It's important to note that the franchisee is responsible for the expenses associated with training any replacement Regional Manager, including paying the standard training fees. This ensures that the replacement is adequately prepared to fulfill the role effectively. This requirement ensures continuity of management and adherence to Stretch Zone standards, but it also places a financial and operational burden on the franchisee to quickly find and train a suitable replacement.