Is the Receipt included as Exhibit P in the Stretch Zone Franchise Disclosure Document a binding contract?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
You will find copies of a detachable Receipt attached as Exhibit P at the very end of this Franchise Disclosure Document. It is not a binding contract. This merely verifies that you have received this Franchise Disclosure Document. Please complete and sign both copies. Keep a copy of your files and mail the other copy to us.
Source: Item 22 — ITEM -22 CONTRACTS (FDD pages 84–89)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the receipt included as Exhibit P is not a binding contract. The document clarifies that the receipt merely verifies that the prospective franchisee has received the Franchise Disclosure Document. Franchisees are instructed to complete and sign both copies of the receipt, keep one copy for their records, and mail the other copy back to Stretch Zone.
This is a standard practice in franchising. The purpose of the receipt is to document that the franchisor has provided the FDD to the franchisee, fulfilling a legal requirement for transparency. This receipt serves as proof that Stretch Zone provided the required disclosure document, protecting the franchisor from potential legal issues related to disclosure requirements.
Prospective franchisees should be aware that signing this receipt does not obligate them to purchase a franchise. It simply acknowledges that they have received the FDD, which contains important information about the Stretch Zone franchise opportunity. The franchisee should carefully review the entire FDD and all related agreements before making any decisions or signing any binding contracts.