factual

Regarding intellectual property claims, with whom is a Stretch Zone franchisee prohibited from communicating, except under judicial process?

Stretch_Zone Franchise · 2025 FDD

Answer from 2025 FDD Document

If there is any claim of infringement, unfair competition or other challenge to your right to use the Principal Trademark or the other Intellectual Property you will promptly (within 7 days) notify us in writing. If you become aware of any use of, or claim to, the Principal Trademark or the other Intellectual Property by persons other than us or our Franchisees, you will promptly (within 7 days) notify us in writing. You will not communicate with anyone except our counsel and us on any infringement, challenge or claim except under judicial process. We have sole discretion as to whether we take any action on any infringement, challenge or claim. We have the sole right to control any litigation or other proceeding arising out of any infringement of, challenge to, or claim to any Intellectual Property. You must sign all documents, render all assistance, and do all acts that our attorneys deem necessary or advisable in order to protect and maintain our interest in any litigation or proceeding involving the Intellectual Property or otherwise to protect and maintain our interests in the Intellectual Property.

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, if there is any claim of infringement, unfair competition, or other challenge to the franchisee's right to use the Principal Trademark or other Intellectual Property, the franchisee must promptly notify Stretch Zone in writing within 7 days. Similarly, the franchisee must notify Stretch Zone in writing within 7 days if they become aware of any unauthorized use of, or claim to, the Principal Trademark or other Intellectual Property by others.

Critically, the franchisee is prohibited from communicating with anyone regarding any infringement, challenge, or claim, except Stretch Zone's counsel and Stretch Zone itself. The only exception to this communication restriction is if communication is required under judicial process.

Stretch Zone retains sole discretion regarding whether to take action on any infringement, challenge, or claim. They also have the sole right to control any litigation or other proceeding arising out of any infringement of, challenge to, or claim to any Intellectual Property. The franchisee is obligated to sign documents and provide assistance that Stretch Zone's attorneys deem necessary to protect Stretch Zone's interests in any related litigation or proceeding.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.