Where must any litigation to enforce the Area Development Agreement for Stretch Zone 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 franchisee has a dispute with Stretch Zone regarding the Area Development Agreement that escalates to litigation, the franchisee will likely need to pursue the case in Broward County, Florida, regardless of where their own business is located.
This requirement could create additional expenses and logistical challenges for franchisees who do not reside in Florida, as they may need to travel to Broward County for court appearances and hire local legal counsel. The FDD also notes that this choice of forum is subject to state law, which suggests there might be some limited exceptions depending on the franchisee's location and the specific nature of the dispute.
It is important for prospective Stretch Zone franchisees to carefully consider this forum selection clause and understand its potential implications before signing the Area Development Agreement. Franchisees should consult with legal counsel to assess how this clause might affect their rights and obligations, and to determine whether any state laws might offer protection or alternatives.