What obligations does a Stretch Zone franchisee have under the Franchise Agreement, as outlined in Item 9, and how do these relate to the pre-opening obligations of the franchisor in Item 11?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 9: ITEM -9 FRANCHISEE'S OBLIGATIONS]
| Obligation | Section in Franchise Agreement | Franchise Disclosure Document ITEM |
|---|---|---|
| a. Site selection and acquisition/lease | Section 4.1 | ITEMS 6, 7, 8 and 11 |
| b. Pre-opening purchases/leases | Sections 4.1, 4.2, 4.3, 4.4,4.5, 4.7, 4.8, 4.9, 4.11, and 4.12 | ITEMS 5, 7, 8 and 11 |
| c. Site development and other pre | Sections 4.1 and 4.2 | ITEMS 7, 8 and 11 |
| opening requirements | ||
| d. Initial and ongoing training | Sections 2.9, 2.11 and 2.12(f) | ITEMS 6, 7, 8 and 11 |
| e. Opening | Section 4.10 | ITEMS 7, 8 and 11 |
| f. Fees | Sections 1.5(d), 2.9, 2.12(f) 3.1, 3.4, 3.6, 4.6(d), 4.7(d), 4.10(a), 4.22, 6.1, 8.3(b), 9.7, 10.2(b)(vi), 10.2(f)(vii), 12.8, 16.2(a)(iv) and 17.6 | ITEMS 5, 6 and 7 |
[Item 9: ITEM -9 FRANCHISEE'S OBLIGATIONS]
| Obligation | Section in Area Development Agreement | Franchise Disclosure Document Item |
|---|---|---|
| a. Site selection and acquisition/lease | Not Applicable | Not Applicable |
| b. Pre-opening purchases/leases | Not Applicable | Not Applicable |
| c. Site development and other pre-opening | Not Applicable | Not Applicable |
| requirements | ||
| d. Initial and ongoing training | Not Applicable | Not Applicable |
| e. Opening | Not Applicable | Not Applicable |
| f. Fees | Section 3.1 | ITEMS 5 and 6 |
| g. Compliance with standards and | ARTICLE 4 | ITEMS 8, 11 and 14 |
| policies/Operating Manual | ||
| h. Trademarks and proprietary information | Not Applicable | Not Applicable |
| i. Restrictions on products/services offered | Section 1.1 | ITEMS 8 and 16 |
| k. Territorial development and sales quotas | Sections 1.2, 1.3, 1.4, 1.5 and 4.1 | ITEM 12 |
| l. Ongoing product/service purchases | Not Applicable | Not Applicable |
| m. Maintenance, appearance and remodeling | Not Applicable | Not Applicable |
| requirements | ||
| n. Insurance | Not Applicable | Not Applicable |
| o. Advertising | Not Applicable | Not Applicable |
| p. Indemnification | Section 8.15 | Not Applicable |
| q. Owner's participation/management/staffing | Not Applicable | Not Applicable |
| r. Records/reports | Section 4.2 | Not Applicable |
| s. Inspections/audits | Not Applicable | Not Applicable |
| t. Transfer | Section 5.2 | ITEMS 6 and 17 |
| u. Renewal | Not Applicable | ITEMS 6 and 17 |
| v. Post-termination obligations | Not Applicable | Not Applicable |
| w. Non-competition covenants | Not Applicable | Not Applicable |
[Item 11: ITEM -11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
PRE-GRAND OPENING AND FRANCHISE BUSINESS GRAND OPENING
As detailed above, we will provide certain assistance in connection with the grand opening of the Franchise Business during the, approximately, three weeks before and the three weeks after the opening of the Franchise Business, and you will pay us a Grand Opening Fee of $14,950 (as detailed in Item 6). You will engage in the grand opening plan, as outlined in the Operations Manual to introduce your Franchise Business to the community. We will provide you with promotional support, such as social media scheduling and posting, email scheduling and sending, photography, press release writing and promotion, print assets, grand opening assets, such as ribbon and scissors, and tools to assist in the capture of content – tripod, Bluetooth microphone, etc.
LOCAL ADVERTISING (Section 7.1 of the Franchise Agreement)
Your Expenditures. You must spend a minimum of $2,000 per month on Local Advertising of your Franchise Business within your DMA. You may not advertise outside of your DMA.
Our Approval. You must submit to us for our approval all materials used for Local Advertising, unless we have previously approved the materials or the materials consist of materials we have provided. All materials containing the Intellectual Property must include the applicable designation - service marksm, trademark™, registered® or copyright© , or any other designation we specify. If you have not received our written disapproval of materials you submitted within 10 days from the date we received the materials, then we are considered to have approved the materials. We may require you to withdraw and/or discontinue the use of any promotional materials or advertising, even if previously approved, if in our judgment, the materials or advertising may injure or be harmful to the Business System. You will have 5 days after you receive of our written notice to discontinue using the materials or advertising, unless otherwise agreed in writing.
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, Item 9 outlines the franchisee's obligations under the Franchise Agreement and the Area Development Agreement. These obligations span various aspects of the business, including site selection, pre-opening activities, training, and ongoing operations. Specifically, under the Franchise Agreement, franchisees are responsible for site selection and acquisition/lease, pre-opening purchases/leases, site development and meeting pre-opening requirements, initial and ongoing training, opening the franchise, and paying fees. These obligations are directly related to the franchisor's assistance detailed in Item 11, particularly concerning pre-opening support and training programs. Item 11 details the pre-grand opening assistance Stretch Zone provides, including promotional support and a grand opening plan, for which the franchisee pays a $14,950 Grand Opening Fee.
For franchisees entering into an Area Development Agreement, their obligations include paying fees and adhering to Stretch Zone's standards, policies, and operating manual. They must also comply with trademark regulations, restrictions on products/services, territorial development and sales quotas. These obligations are linked to Item 11 through the franchisor's responsibility to provide ongoing support and training to ensure compliance with operational standards. The franchisee is also responsible for local advertising, with a minimum spend of $2,000 per month within their DMA, and must obtain approval for advertising materials from Stretch Zone.
The relationship between Item 9 and Item 11 highlights the shared responsibilities between Stretch Zone and its franchisees. While franchisees are obligated to manage various aspects of setting up and running the business, Stretch Zone commits to providing support, training, and resources to facilitate their success. This includes pre-opening assistance, ongoing operational support, and adherence to brand standards. Prospective franchisees should carefully consider these obligations and the associated costs, ensuring they have the resources and capabilities to meet these requirements while leveraging the support provided by Stretch Zone.