Regarding jurisdiction or venue for a Stretch Zone franchise in Illinois, what does the Illinois Franchise Disclosure Act state?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
open for business. The Illinois Attorney General's Office imposed this deferral requirement due to our financial condition.
Section 3.1(a) of the Franchise Agreement is amended as follows:
- (a) Initial Franchise Fee. You must pay to us an Initial Franchise Fee of $59,500. The Initial Franchise Fee will be deferred and is not payable to us until we have complied with all of our pre-opening obligations to you under the Franchise Agreement and you are open for business. The Initial Franchise Fee is uniform as to all Franchisees currently purchasing a Franchise.
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- This Amendment is effective only to the extent that the jurisdictional requirements of the Act are met independent of this Amendment. This Amendment has no force and effect if the jurisdictional requirements are not met.
In witness whereof, each of the undersigned acknowledges having read this Addendum, understands and consents to be bound by all of its terms.
| FRANCHISOR: | FRANCHISEE: | | |----------------------------------------------------------------------|-----------------------------------------------|--| | STRETCH ZONE FRANCHISING LLC, a | (IF ENTITY): | | | Florida limited liability company | | | | By: Tony Zaccario, CEO and President Date:, 20 | [Name] By: Name: Title: Date:, 20 (IF INDIVIDUALS): [Signature] [Print Name] Date:, 20 [Signature] [Print Name] Date:, 20 | |
ILLINOIS ADDENDUM TO THE AREA DEVELOPMENT AGREEMENT
This Addendum to the Area Development Agreement is agreed to on ___________________ between Stretch Zone Franchising, LLC ("we," "us" or "our") and_____________________________ ("you" or "your").
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- Illinois law governs the Area Development Agreement.
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- In conformance with Section 4 of the Illinois Franchise Disclosure Act any provision in an Area Development Agreement that designates jurisdiction or venue in a forum outside of the State of Illinois is void.
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, Illinois law governs the Area Development Agreement and Franchise Agreement for franchises operating in Illinois. The Illinois Franchise Disclosure Act stipulates that any provision designating jurisdiction or venue outside of Illinois is void. This means that if a dispute arises, it must be resolved within the Illinois court system. However, the agreements may still allow for arbitration to occur outside of Illinois, providing an alternative dispute resolution method.
This provision protects Illinois franchisees by ensuring they are not forced to litigate disputes in a distant or inconvenient forum. It also prevents Stretch Zone from choosing a jurisdiction that might be more favorable to the company. The Illinois Franchise Disclosure Act also states that any condition, stipulation, or provision that attempts to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void, further safeguarding the franchisee's rights.
Furthermore, the FDD states that all initial fees are deferred until Stretch Zone has fulfilled all pre-opening obligations and the franchisee is open for business. This deferral requirement was imposed by the Illinois Attorney General's Office due to Stretch Zone's financial condition. This deferral of fees provides a level of financial protection for the franchisee, ensuring they do not pay fees until the franchise is ready to commence operations.