When operating a Stretch Zone franchise, are franchisees allowed to use Stretch Zone's intellectual property to sign contracts or other legal obligations?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
You may use the Intellectual Property only in accordance with standards and specifications we reasonably determine and implement on a Network-wide basis. You agree that:
(a) Limitation on Use. You will use the Intellectual Property only for the operation of your Franchise Business at the Premises.
- (b) Prohibitions. You will not employ any of the Intellectual Property in signing any contract, check, negotiable instrument or legal obligation, application for any license or permit, or in a manner that may result in liability to us for any indebtedness or obligation of yours.
- (c) Sole Business Name. You will use our Principal Trademark as the sole service mark identification for your Franchise Business and will display prominently our Principal Trademark on and/or with all materials that we designate and authorize and in a manner that we specify.
- (d) No Encumbrance. You will not use any of the Intellectual Property as security for any obligation or indebtedness.
- (e) Fictitious Name. You cannot use the Stretch Zone trade name as part of your legal business name. You must comply in filing and maintaining any required fictitious, trade or assumed name registrations for the "Stretch Zone" trade name for example, John Jones d/b/a "Stretch Zone" or ABC, Inc. d/b/a "Stretch Zone," and will sign all documents that we or our counsel deem reasonably necessary to obtain protection for the trademarks and our interest in the trademarks.
- (f) Impairment. You will exercise caution when using the Intellectual Property to ensure that the Intellectual Property is not in any manner jeopardized.
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, franchisees are specifically prohibited from using Stretch Zone's intellectual property when signing contracts or other legal obligations. Stretch Zone retains ownership of its intellectual property and aims to protect its validity. Franchisees are permitted to use the intellectual property only for operating their franchise business at their designated premises, adhering to Stretch Zone's standards and specifications.
This restriction means that franchisees must not use Stretch Zone's trademarks, logos, or other intellectual property assets in any way that could create a legal or financial obligation for Stretch Zone. This includes, but is not limited to, signing contracts, checks, negotiable instruments, or applications for licenses or permits. The franchisee must also ensure that the intellectual property is not used as security for any debt or obligation.
This policy protects Stretch Zone from potential liabilities arising from a franchisee's actions. Franchisees must be diligent in maintaining a clear distinction between their business operations and Stretch Zone's overall brand and legal identity. Franchisees are required to use the Stretch Zone trademark as the sole service mark identification for their franchise business and must display it prominently on authorized materials in a manner specified by Stretch Zone.