If Stretch Zone requires the franchisee to assemble the collateral, where is a location considered reasonably convenient?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee/Debtor agrees that any place designated by the Franchisor/Secured Party within Broward County, Florida, is a place reasonably convenient to Franchisee/Debtor to assemble the Collateral.
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, if a franchisee is required to assemble collateral, any location within Broward County, Florida, that is designated by Stretch Zone is considered reasonably convenient for the franchisee.
This means that if Stretch Zone needs a franchisee to gather collateral for any reason, the franchisee must comply with the franchisor's request as long as the location is within Broward County, Florida. This could be relevant in situations involving loan defaults or other financial issues where Stretch Zone needs to recover assets.
For a prospective franchisee, this clause highlights the importance of understanding the obligations related to collateral and asset recovery. While this may not be a common occurrence, it's crucial to be aware of the potential implications and the geographic limitations specified in the agreement.