What are the implications for Stretch Zone franchisees in states with 'Pending' effective dates?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| State | Effective Date |
|---|---|
| California | Pending |
| Hawaii | Pending |
| Illinois | Pending |
| Indiana | May 1, 2025 |
| Maryland | Pending |
| Michigan | April 30, 2025 |
| Minnesota | Pending |
| New York | Pending |
| North Dakota | Pending |
| Rhode Island | Pending |
| South Dakota | May 1, 2025 |
| Virginia | Pending |
| Washington | Pending |
| Wisconsin | May 1, 2025 |
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, several states have a 'Pending' effective date for franchise registration. This means that as of April 30, 2025 (the FTC issuance date of the FDD), Stretch Zone has not yet completed the registration or filing process required to offer and sell franchises in those states. The states listed with a 'Pending' effective date include California, Hawaii, Illinois, Maryland, Minnesota, New York, North Dakota, Rhode Island, Virginia, and Washington.
For prospective Stretch Zone franchisees in these states, this has significant implications. Stretch Zone cannot legally offer or sell a franchise in these states until the registration becomes effective. This means that a potential franchisee cannot sign a franchise agreement or make any payments to Stretch Zone related to the franchise. Engaging in franchise sales activities before the effective date could result in violations of state franchise laws.
It is important for prospective franchisees to monitor the registration status in their state and confirm with Stretch Zone when the registration becomes effective. The effective date signifies the point at which Stretch Zone has met all the necessary legal requirements to operate as a franchisor in that state. Franchisees should also be aware that some states may require registration, filing, or exemption of a franchise under other laws, such as those regulating business opportunities or seller-assisted marketing plans, adding another layer of compliance to consider.
In contrast, the FDD lists Indiana, Michigan, South Dakota and Wisconsin as having effective dates already in place (May 1, 2025 for Indiana, South Dakota and Wisconsin and April 30, 2025 for Michigan). This means that Stretch Zone is currently able to offer and sell franchises in those states, provided they adhere to the specific disclosure requirements outlined in the FDD, such as providing the document at least 14 calendar days before any binding agreement is signed or payment is made.