Does Stretch Zone make representations about the anticipated revenues, earnings, or profitability of a franchisee's Stretch Zone business, except as stated in the FDD?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Except as may be stated in the FDD, neither we, nor any of our Affiliates, nor any of our or our Affiliates' officers, agents, employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Stretch Zone business or the anticipated revenues, earnings, or profitability of your Franchise Business or any other business operated by us, our licensees, our franchisees, or our Affiliates. Any information you have acquired from other Stretch Zone franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy.
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, Stretch Zone acknowledges that they do not make representations about the anticipated revenues, earnings, or profitability of any Stretch Zone business, except as may be stated in the FDD. Franchisees acknowledge that they have conducted their own independent investigation of the business venture and recognize that it involves business risks and that their results will depend on their own efforts and abilities. Franchisees also acknowledge that they have reviewed the Franchise Agreement and the FDD, and have been given ample time to consult with representatives and advisors about the potential risks and benefits of entering into the agreement.
This means that prospective Stretch Zone franchisees should not rely on any representations or promises made by Stretch Zone, its affiliates, or their officers, agents, or representatives regarding potential financial performance, unless those representations are explicitly stated in the FDD. Any information acquired from other Stretch Zone franchisees regarding their sales, profits, or cash flows is not information obtained from Stretch Zone, and Stretch Zone makes no representation about that information's accuracy.
This disclosure is a standard practice in franchising, as it emphasizes that the franchisee's success depends on their own efforts and market conditions. It also protects Stretch Zone from liability if a franchisee's business does not perform as expected. Prospective franchisees should carefully review Item 19 of the FDD, which may contain an Earnings Claim with specific financial performance representations, and conduct thorough due diligence, including consulting with existing franchisees and financial advisors, to assess the potential profitability of a Stretch Zone franchise.