What is the 'Premises' referring to in the context of the Stretch Zone agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS AGREEMENT is signed on among Stretch Zone Franchising LLC (the "Franchisor");, a limited liability company (the "Landlord") and , LLC, a limited liability company (the |
|---|
| "Tenant/Franchisee"). |
| BACKGROUND |
| A. |
| The Tenant/Franchisee is a franchisee of the Franchisor under a Stretch Zone |
| Franchise Agreement between the Franchisor and the Tenant/Franchisee dated |
| (the "Franchise Agreement") for the operation of a Stretch Zone (the "Franchise Business"). |
| B. |
| The Landlord and the Tenant/Franchisee are parties to a Lease Agreement dated |
| (the |
| "Lease") |
| for |
| the |
| premises |
| located |
| at |
| (the |
| "Premises") |
| that |
| has |
| been |
| approved by the Franchisor on condition that all the parties sign this Agreement. |
| C. |
| In order to assure that a Franchise Business continues to operate at the Premises, |
| the Landlord grants certain rights to the Franchisor under the Lease to protect the Franchisor's |
| interest under the Franchise Agreement. |
| The parties agree as follows: |
| TERMS |
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, the term "Premises" refers to the physical location where the Stretch Zone franchise business will operate. This location is subject to a lease agreement between the franchisee (Tenant/Franchisee) and the landlord, and it must be approved by Stretch Zone. The franchisor's approval is contingent upon all parties signing an agreement that ensures the Stretch Zone business continues to operate at that location.
The agreement grants Stretch Zone certain rights under the lease to protect its interests in the franchise. This is to ensure that the brand maintains its presence and operational standards at the specified location. The landlord acknowledges these rights, which are designed to safeguard Stretch Zone's investment and brand integrity.
In the event of a default by the franchisee under the lease, Stretch Zone has the option to cure the default and take over the premises to continue operating the franchise. If Stretch Zone chooses not to exercise its option to take over the premises after the agreement terminates and the franchisee desires to remain in possession, the franchisee can only operate a business that does not violate the non-compete agreement. The franchisee must also modify the premises to differentiate its appearance from other Stretch Zone franchise businesses, including removing all Stretch Zone signage and logos.