Does Stretch Zone represent having special expertise in negotiating leases for franchisees?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- Right to Cure and Take Occupancy.
- (a) If the Tenant/Franchisee defaults under the Lease, the Franchisor may (but is under no obligation to), within 30 days after receipt of written notice from the Landlord, cure the default (or a longer period of time if the default is not capable of being cured within 30 days and the Franchisor is diligently proceeding to cure the default).
If the Franchisor cures the Tenant/Franchisee's default, the Franchisor has the right to occupy the Premises and operate the Franchise Business.
The Tenant/Franchisee is deemed to have assigned the Lease to the Franchisor, but the Tenant/Franchisee and any guarantors are not released from their obligations under the Lease.
From and after the deemed assignment, the Franchisor will assume and perform all of the obligations of the Tenant/Franchisee under the Lease until the Franchisor is released in accordance with Subsection 4(b).
- (b) The Franchisor may assign the Lease to another Stretch Zone Franchisee with the Landlord's written approval of the new tenant/franchisee.
The Landlord will not unreasonably withhold, delay or condition its approval of the new tenant/franchisee.
Upon the permitted assignment by the Franchisor to the new tenant/franchisee, the Franchisor is released from all further obligations under the Lease.
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)
The 2025 Stretch Zone Franchise Disclosure Document does not explicitly state that Stretch Zone has special expertise in negotiating leases for franchisees. However, the document does address the franchisor's rights regarding the lease in the event of a franchisee default. Specifically, if a Stretch Zone franchisee defaults on their lease, Stretch Zone has the option, but not the obligation, to cure the default within 30 days of receiving written notice from the landlord. If Stretch Zone cures the default, they have the right to occupy the premises and operate the franchise business.
In such a scenario, the franchisee is considered to have assigned the lease to Stretch Zone, although the franchisee and any guarantors remain responsible for their obligations under the lease. Stretch Zone will then assume and fulfill all of the franchisee's obligations under the lease until they are released, according to the terms outlined in the FDD. Stretch Zone also has the option to assign the lease to another Stretch Zone franchisee, provided they obtain written approval from the landlord, which cannot be unreasonably withheld, delayed, or conditioned. Upon this permitted assignment, Stretch Zone is released from any further obligations under the lease.
While the FDD outlines these rights and procedures related to the lease, it does not contain any statements about Stretch Zone's expertise or assistance in the initial lease negotiation process for franchisees. Prospective franchisees should inquire directly with Stretch Zone about any support or resources they offer in securing favorable lease terms and locations.