What is the relocation fee a Stretch Zone franchisee must pay if they must relocate their Franchise Business?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Protected Territory of a Company-Owned Unit or another Franchised Unit then operating or under development. We must approve the new location in writing in accordance with Section 2.1. During the period when your Franchise Business is not in operation due to the relocation of the Premises, you are not required to spend the minimum Local Advertising Contributions. You have 60 days from the date you sign the new lease in which to open and begin operating the Franchise Business, unless we otherwise agree in writing to extend the time. Your failure to secure a new location and begin operation within the specified times is an Event of Default on your part.
- (c) Condemnation. You will give us notice of any proposed taking of the Premises by eminent domain, as soon as possible. We permit you 30 days from the date you have to vacate the Premises to obtain new Premises within your Limited Protected Territory. The relocated Premises must not infringe upon the Limited Protected Territory of a Company-Owned Unit or another Franchised Unit then operating or under development. We must approve the new location in writing i
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, if a franchisee is required to relocate their Stretch Zone business, they must cover Stretch Zone's costs incurred while assisting with the relocation, in addition to paying a $1,000 relocation fee.
Stretch Zone also requires franchisees to notify them as soon as possible if the premises are subject to eminent domain. Franchisees are given 30 days from the date they must vacate the premises to find a new location within their protected territory. The new location is subject to Stretch Zone's approval and must not infringe on the protected territory of other existing or developing Stretch Zone units.
Furthermore, the franchisee has 60 days from signing the new lease to open and begin operating the relocated Stretch Zone business, unless Stretch Zone agrees to extend this timeframe in writing. Failure to secure a new location and begin operations within the specified time frame constitutes an event of default under the agreement. However, during the relocation period when the Stretch Zone business is not operational, the franchisee is not required to meet the minimum local advertising contribution requirements.