Which obligations of the parties to the Stretch Zone agreement survive its expiration or termination?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties' obligations that expressly or by their nature survive the expiration or termination of this Agreement continue in full force after the transfer, expiration or termination of this Agreement until they are satisfied or by their nature expire.
Section 19.11 FORCE MAJEURE
Neither party is liable for loss or damage or is in breach of this Agreement, if the failure to perform his, her or its obligations is based solely from the following causes beyond his, her or its reasonable control: (a) transportation shortages, inadequate supply of equipment, merchandise, supplies, labor, material, or energy; (b) compliance with any applicable law; or (c) war, terrorism, strikes, natural disaster, pandemics or acts of God. Any delay resulting from any of these causes extends performance accordingly or excuses performance as may be reasonable, except that these causes do not excuse payments of amounts owed to us for any reason.
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, the obligations of both parties that are either explicitly stated to survive or naturally survive the expiration or termination of the agreement will remain in effect. These obligations will continue to be enforced even after the agreement has ended, until they are either completely fulfilled or naturally expire due to their nature.
Additionally, upon the termination or expiration of the Stretch Zone agreement, if the franchisee wishes to continue operating at the same location, they are permitted to operate a business that does not compete with Stretch Zone. To do so, the franchisee must immediately modify the premises to differentiate its appearance from other Stretch Zone locations. This includes removing all identifying architectural elements and signage bearing the Stretch Zone name or logos.
Until these modifications are completed, the franchisee must display a conspicuous sign indicating that the business is no longer associated with Stretch Zone and inform customers of the same. If the franchisee fails to comply with these requirements, Stretch Zone has the right to enter the premises and remove the signage at the franchisee's expense.