How might RCW 19.100.180 affect the franchise agreement or related agreements concerning the relationship between Stretch Zone and its franchisees?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
] Date:, 20 | |
VIRGINIA ADDENDUM TO AREA DEVELOPMENT AGREEMENT
| This Addendum to Area Development Agreement is signed on |
|---|
| between Stretch Zone Franchising, LLC ("we" "us" or "our") and |
| ("you" or "your") to amend the Area Development Agreement as follows: |
- Section 3.1 of the Area Development Agreement is amended as follows:
SECTION 3.1 DEVELOPMENT FEE
In consideration of the rights granted to you, you will pay to us a Development Fee when we have complied with all of our pre-opening obligations to you under the Area Development Agreement.
- Section 9.2 is amended to read as follows:
Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. §§ 1051 et seq.), the Area Development Agreement and any other agreement involving the Area Development Agreement and all transactions contemplated by the Area Development Agreement and any other agreement involving the Development will be governed by, and construed and enforced in accordance with the Virginia Retail Franchising Act, without giv
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, RCW 19.100.180, part of the Washington Franchise Investment Protection Act, may supersede provisions in the franchise agreement or related agreements concerning the relationship between Stretch Zone and its franchisees if the offer to sell a franchise is accepted in Washington, the purchaser of the franchise is a resident of Washington, or the franchised business is to be located or operated, wholly or partly, in Washington. This includes areas such as termination and renewal of the franchise.
This means that certain terms in the standard Stretch Zone franchise agreement that deal with ending the agreement or renewing it might not be enforceable in Washington state if they conflict with the protections provided to franchisees under RCW 19.100.180. Franchisees in Washington have additional rights and protections under state law that take precedence over the contract terms.
Prospective Stretch Zone franchisees in Washington should be aware of this addendum and understand that Washington law provides specific protections. It is important for franchisees to consult with legal counsel to fully understand their rights and obligations under both the franchise agreement and Washington law. Additionally, court decisions could also supersede the franchise agreement or related agreements concerning the relationship between the franchisor and franchisee.