What must the Offeree deliver to Stretch Zone before any sale of the Interest?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Before any sale of the Interest to the Offeree, the Offeree must deliver to us a written acknowledgment that the Interest purchased is subject to the terms of this Agreement and that the Offeree agrees to be bound to the terms of this Section on transferring the Interest, in the same manner as the Offeror.
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 FDD, before any sale of interest to the offeree, the offeree must deliver a written acknowledgment to Stretch Zone. This acknowledgment confirms that the purchased interest is subject to the terms of the existing agreement.
Specifically, the offeree must agree to be bound by the terms outlined in Section 10.2 of the agreement when transferring the interest. This ensures that any subsequent transfer of the interest by the offeree will also adhere to the conditions and restrictions set forth in the original agreement.
This requirement protects Stretch Zone's interests by ensuring that any new party acquiring an interest in the franchise is fully aware of and compliant with the franchise agreement's terms, particularly those related to future transfers. It maintains control over who can become a franchisee and ensures consistent adherence to the franchise's standards and obligations.