For how many Stretch Zone franchises did Drew Brees receive Area Development Rights?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
laim the representations we made in this FDD. Any representations or promises outside the FDD and the Area Development Agreement may not be enforceable. | | u. Dispute resolution by arbitration or mediation1 | Section 9.1 | All disputes must be resolved first by informal dispute resolution and, if unsuccessful, by mediation and, if mediation is not successful, then by arbitration except claims involving: 1. The Intellectual Property; 2. Any lease or sublease of real property; 3. Your obligations upon termination or expiration of your Area Development Agreement; 4. Any transfers; 5. Matters involving claims of danger, health or safety; and 6. Requests for restraining orders, injunctions or similar procedures. You must waive your rights to a jury trial and claims for punitive damages. |
| 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 |
Source: Item 18 — ITEM -18 PUBLIC FIGURES (FDD page 73)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, as part of a Celebrity Endorsement Agreement, Drew Brees, through Brees Company, Inc. (BCI), was granted Area Development Rights for 20 Stretch Zone franchises. These franchises are to be located in the greater New Orleans, Indianapolis, and San Diego areas.
In exchange for Brees' endorsement, Stretch Zone agreed to several terms, including a guaranteed minimum annual payment to BCI, initially $250,000 and later increased to $500,000 through an amendment in June 2023. Additionally, Brees was granted the right to be on the Management Committee and received Unit Appreciation Rights. He was also given a Right of First Refusal for franchises located in Orange County, California.
Area Development Rights allow Brees, or BCI on his behalf, to develop multiple Stretch Zone franchises within a specific geographic area, following a development schedule agreed upon with Stretch Zone. This agreement ensures that Brees has the opportunity to establish a significant presence of Stretch Zone franchises in the designated regions, while also benefiting from the brand's association with his public image and endorsement.