What information about a former Stretch Zone franchisee must Stretch Zone disclose after they cease being a franchisee?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 6.3 EFFECT OF TERMINATION OR EXPIRATION
Upon termination or expiration of this Agreement, all your Area Development Rights cease rights cease, and you will have no further right to develop any additional Franchise Businesses under this Agreement.
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)
Based on the 2025 Stretch Zone Franchise Disclosure Document, there is no information provided specifying what details Stretch Zone must disclose regarding a former franchisee after they are no longer part of the franchise system. The document does outline the effects of termination or expiration of the Area Development Agreement, stating that all Area Development Rights cease, and the franchisee has no further right to develop additional Franchise Businesses.
However, the FDD does not elaborate on any specific disclosures Stretch Zone is obligated to make about former franchisees. This could include information about the reasons for termination, performance data, or any other details relevant to potential investors or franchisees.
A prospective Stretch Zone franchisee should directly ask the franchisor about their policies and legal obligations regarding disclosures about former franchisees. Understanding these policies can provide valuable insight into the franchise's transparency and its relationship with its franchisees, both current and former.