Where must any litigation to enforce the Stretch Zone Area Development Agreement be filed?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Development Agreement | Summary |
|---|---|---|
| v. Choice of forum1 | Section 9.1 | Subject to state law, any informal dispute resolution, |
| mediation or arbitration proceeding must be conducted | ||
| where our principal office is located when the demand is | ||
| requested. Any litigation to enforce the Area | ||
| Development Agreement must be filed in the courts | ||
| where our principal office is located when litigation is | ||
| filed (currently Broward County, Florida). |
Source: Item 17 — ITEM -17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 65–73)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, any litigation to enforce the Area Development Agreement must be filed in the courts where Stretch Zone's principal office is located. Currently, their principal office is located in Broward County, Florida. This means that if a Stretch Zone area developer needs to sue Stretch Zone to enforce the terms of their agreement, they must do so in Broward County, Florida, regardless of where the developer's business is located.
This requirement could create additional costs and logistical challenges for a Stretch Zone area developer who does not reside in Florida. They would need to hire Florida-based attorneys and potentially travel to Florida for court proceedings. This could increase the overall expense of pursuing a legal claim against Stretch Zone.
It is common practice in franchising to include a forum selection clause in the franchise agreement, which dictates where legal disputes must be resolved. This clause aims to provide clarity and predictability for both parties involved in the agreement. Franchisees should carefully consider the implications of such clauses, especially if the designated forum is far from their place of business or residence.