What intellectual property does Stretch Zone license to the franchisee?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 5 - INTELLECTUAL PROPERTY
Section 5.1 OUR REPRESENTATIONS AS TO THE INTELLECTUAL PROPERTY
We represent to you that:
- (a) Ownership. We are the sole owner of the Intellectual Property.
- (b) Protection. We will take all steps necessary to preserve and protect the ownership and validity of the Intellectual Property.
Section 5.2 YOUR USE OF THE INTELLECTUAL PROPERTY
You may use the Intellectual Property only in accordance with standards and specifications we reasonably determine and implement on a Network-wide basis. You agree that:
(a) Limitation on Use. You will use the Intellectual Property only for the operation of your Franchise Business at the Premises.
- (b) Prohibitions. You will not employ any of the Intellectual Property in signing any contract, check, negotiable instrument or legal obligation, application for any license or permit, or in a manner that may result in liability to us for any indebtedness or obligation of yours.
- (c) Sole Business Name. You will use our Principal Trademark as the sole service mark identification for your Franchise Business and will display prominently our Principal Trademark on and/or with all materials that we designate and authorize and in a manner that we specify.
- (d) No Encumbrance. You will not use any of the Intellectual Property as security for any obligation or indebtedness.
- (e) Fictitious Name. You cannot use the Stretch Zone trade name as part of your legal business name. You must comply in filing and maintaining any required fictitious, trade or assumed name registrations for the "Stretch Zone" trade name for example, John Jones d/b/a "Stretch Zone" or ABC, Inc. d/b/a "Stretch Zone," and will sign all documents that we or our counsel deem reasonably necessary to obtain protection for the trademarks and our interest in the trademarks.
- (f) Impairment. You will exercise caution when using the Intellectual Property to ensure that the Intellectual Property is not in any manner jeopardized.
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, Stretch Zone represents that they are the sole owner of the intellectual property and will take necessary steps to protect it. As a franchisee, you are permitted to use the intellectual property only for operating your Stretch Zone franchise business at the premises.
The franchisee is prohibited from using Stretch Zone's intellectual property in signing any contract, check, negotiable instrument, legal obligation, or license application in a way that could create liability for Stretch Zone. The franchisee must use Stretch Zone's Principal Trademark as the sole service mark and display it prominently on all designated materials as specified by Stretch Zone. The franchisee cannot use the Stretch Zone trade name as part of their legal business name but must comply with fictitious name registrations, such as "John Jones d/b/a 'Stretch Zone,'" and sign documents to protect Stretch Zone's trademarks.
Furthermore, the franchisee is prohibited from using any of Stretch Zone's intellectual property as security for any obligation or indebtedness. Franchisees must exercise caution to ensure the intellectual property is not jeopardized in any manner. Overall, Stretch Zone maintains tight control over its intellectual property, and franchisees must adhere to strict guidelines regarding its use to protect the brand and avoid potential legal or financial repercussions.