How long after the value of Unique Consideration is determined will the closing occur for Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The closing of any purchase where Unique Consideration is determined in accordance with Subsection 10.5(c) will occur within 15 days after the value of the Unique Consideration is determined.
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 the 2025 Stretch Zone Franchise Disclosure Document, if the purchase of an interest or asset involves "Unique Consideration" (consideration that Stretch Zone cannot reasonably duplicate), the closing will occur within 15 days after the value of that Unique Consideration is determined.
This means that if a franchisee is selling their Stretch Zone business and the deal includes unique assets or considerations that Stretch Zone wants to acquire, the finalization of the purchase will happen relatively quickly once a value is agreed upon for those unique elements. This valuation may involve independent appraisers if the parties cannot initially agree on a fair market value.
This 15-day timeframe provides a degree of certainty for both the seller and Stretch Zone, ensuring a swift resolution once the valuation hurdle is cleared. However, it's important to note that this timeline is specifically tied to situations involving Unique Consideration. Standard asset or interest purchases may have a different closing timeframe, as indicated in the FDD.