What is the purpose of the 'Certificate of Performance' related to pre-opening obligations for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
After we have performed all of our pre-opening obligations and you are open for business, we may request you to sign a certification in the form included in the Operations Manual ("Certificate of Performance") confirming our performance. If, in good faith, you do not believe that we have not completed certain of our pre-opening obligations, you will note the alleged deficiencies on Schedule A of the Certificate of Performance (List of Deficiencies to Certificate of Performance), specifically describing the obligations that you believe we have not performed. [Subsection 4.10(c) of the Franchise Agreement]
Source: Item 11 — ITEM -11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–44)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Certificate of Performance serves as a formal acknowledgment of the franchisor's fulfillment of pre-opening obligations. After Stretch Zone has completed its pre-opening responsibilities and the franchisee has opened for business, Stretch Zone may request the franchisee to sign this certificate. The certificate confirms that Stretch Zone has performed its duties as outlined in the Operations Manual.
However, the franchisee has the right to contest the certificate if they believe Stretch Zone has not met all of its pre-opening obligations. In such cases, the franchisee can detail the alleged deficiencies on Schedule A of the Certificate of Performance, specifically describing the obligations that they believe Stretch Zone has not performed. This process allows the franchisee to formally document any shortcomings in Stretch Zone's pre-opening support.
This certificate is important because it provides a mechanism for franchisees to hold Stretch Zone accountable for its pre-opening obligations. By signing the certificate (or noting deficiencies), the franchisee acknowledges the level of support received, which can have implications for the ongoing relationship and obligations of both parties. It is advisable for prospective franchisees to carefully review the pre-opening obligations outlined in the Franchise Agreement and Operations Manual to ensure they align with the support received before signing the Certificate of Performance.