Does Stretch Zone need to interview and approve the transferee in a franchise transfer?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Agreement expires, unless earlier terminated, on the earlier of: (i) the date that the last Franchise Business required to be opened under the Development Schedule actually opens; or (ii) the date that such Franchise Business is required to be opened under the Development Schedule. | | b. Renewal or | Not Applicable | Not Applicable | | extension of the term1 | | | | c. Requirements for | Not Applicable | Not Applicable | | you to renew or | | | | extend | | | | d. Termination by | Not Applicable | You may terminate under any grounds permitted by law. | | you1 | | | | e. Termination by us | Not Applicable | Not Applicable | | without cause | | | | f. Termination by us | Section 7.2 | We may only terminate your Area Development | | with cause | | Agreement with cause. | | g. “Cause” defined – curable defaults | Section 7.3 | You have 30 days or any longer period as applicable law may require, after written notice of default to cure any default and provide evidence of cure satisfactory to us. If you fail to cure timely any curable default, we have the right to terminate the Area Development Agreement effective upon your receipt of our written notice of termination. You have the burden of proving you have timely cured any default, to the extent it is a curable default under the Area Development Agreement. Upon |
| 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). | | w. Choice of law1 | Section 9.1 | Except to the extent governed by the United States | | | | Trademark Act of 1946, the United States Copyright Act | | | | or the United States Arbitration Act, , and subject to | | | | applicable state law, the Development Agreement is | | | | interpreted under the laws of Florida. |
| Provision | Section in Franchise Agreement | Summary |
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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, Stretch Zone does require an interview and approval of any potential transferee as part of the franchise transfer process. Specifically, the FDD outlines several conditions that must be met before Stretch Zone will approve a transfer.
One of these conditions is that the transferee must satisfactorily complete Stretch Zone's application procedures. Another condition is that Stretch Zone must interview and approve the transferee. These stipulations allow Stretch Zone to ensure that any new franchisee meets their standards and is capable of maintaining the brand's reputation and operational quality.
In addition to the interview and application, the transferee is required to sign a new franchise agreement, which may contain materially different terms and conditions than the original agreement. The transferee must also complete the Franchisee Training Program. Furthermore, a transfer fee of $10,000 must be paid either by the original franchisee or the transferee. These comprehensive requirements highlight the importance Stretch Zone places on carefully vetting and training individuals who take over existing franchise locations.