What reporting systems, bookkeeping procedures, and accounting procedures is a Stretch Zone franchisee required to establish and implement at the Franchise Business?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Reporting. Requirements regarding your establishment of daily, weekly and monthly reporting systems; bookkeeping procedures; and accounting procedures, which you must adopt and implement at the Franchise Business.
- (d) Forms. We will supply you with our forms of membership agreement and waiver.
- (e) Materials. We will loan you copies of our advertising and marketing materials.
These forms and schedules are contained in the Operations Manual. WE DO NOT WARRANT THE COMPLETENESS, LEGALITY OR ENFORCEABILITY OF ANY AGREEMENTS OR FORMS WE PROVIDE TO YOU. YOU MUST RETAIN YOUR OWN LEGAL COUNSEL TO REVIEW AND REVISE THESE AGREEMENTS AND FORMS SO THEY COMPLY WITH ALL APPLICABLE FEDERAL AND STATE LAWS.
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 Stretch Zone's 2025 Franchise Disclosure Document, franchisees are required to establish and implement specific reporting, bookkeeping, and accounting procedures at their franchise business. Stretch Zone will loan franchisees lists, forms, and schedules for use in the operation of the franchise business. These include specifications for business cards, stationary, receipts, point-of-sale materials, frequent customer cards, gift cards, and reporting documents.
Specifically, Stretch Zone provides requirements regarding the establishment of daily, weekly, and monthly reporting systems, bookkeeping procedures, and accounting procedures, all of which the franchisee must adopt and implement. These forms and schedules are detailed in the Operations Manual.
It is important to note that Stretch Zone does not warrant the completeness, legality, or enforceability of any agreements or forms provided. Franchisees are advised to retain their own legal counsel to review and revise these documents to ensure compliance with all applicable federal and state laws. This places the onus on the franchisee to ensure their business practices align with legal requirements, even while adhering to Stretch Zone's prescribed systems.