Does Stretch Zone require franchisees to be actively involved in the operation of their franchise business?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ence in our development, operation and franchising; (b) our marketing and promotional programs for Franchise Businesses; (c) knowledge of specifications for and knowledge of our suppliers of certain materials, equipment, furniture and fixtures for a Franchise Business; and (d) knowledge of our customer lists, operating results and financial performance.
We will disclose to you the Confidential Information required for the operation of the Franchise Business during our training programs, in the Operations Manual, and in the guidance and assistance that we furnish you, and you may learn of additional Confidential Information. You may disclose the Confidential Information to your employees or other persons only to the extent reasonably necessary and provided the person has signed our form of Confidentiality and Non-Competition Agreement contained in the Operations Manual before disclosure. You agree, during and after the Initial Term, that you, your Franchise Owners, employees and independent contractors will: (i) not use the Confidential Information in any other business or capacity, including any derivative or spin-off of the body stretching concept; (ii) maintain the absolute secrecy and confidentiality of the Confidential Information during and after the Initial Term; (iii) not make unauthorized copies of any portion of the Confidential Information disclosed or recorded in written or other tangible form or electronic form; and (iv) adopt and implement all procedures that we require to prevent unauthorized use or disclosure of, or access to, the Confidential Information. You agree that any suggestions you make that we incorporate into the Business System are our exclusive property.
We also consider our Trade Dress (that is, elements of the Stretch Zone method and style of doing business) inherently and uniquely distinctive and protectable under applicable Federal and state law.
Nothing contained in the Franchise Agreement prohibits you from using the Confidential Information in the operation of your Franchise Business under the terms of your Franchise Agreement.
ITEM -15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
YOUR PERSONAL PARTICIPATION
You are not our employee. You are your own boss running your own business subject to our rights under your Franchise Agreement. You acknowledge and agree that your Franchise Business is not a "passive" investment. We recommend that you be active in the operation of your Franchise Business, but we do not require any personal "on-premises" participation by you. As discussed
below, however, you must designate an individual to serve as your Regional Manager. You must also have at least one Certified Stretch Zone Practitioner. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual, regardless of whether you choose to operate the Franchise Business as a full-time owner/operator or hire another individual to serve as your Regional Manager.
BUSINESS ENTITY FRANCHISEE
If you are a Business Entity, we recommend that one or more of the Franchise Owners participate personally in the direct operation of the Franchise Business, but we do not require any personal "on-premises" participation by a Franchise Owner. As discussed below, however, you must designate an individual to serve as your Regional Manager. At least one person must be a Certified Stretch Zone Practitioner. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual, regardless of whether you choose to operate the Franchise Business as a full-time owner/operator or hire another individual to serve as your Regional Manager. Under the Franchise Agreement and the Area Development Agreement, each owner of a direct or indirect interest in you of 20% or more must sign the applicable Guaranty attached as Exhibit G, under the terms of which those owners promise to be personally bound, jointly and severally, by all of the applicable agreement's provisions. In addition, at our request, the spouse of each guaranteeing owner (as applicable) will execute the Guaranty.
DESIGNATED REPRESENTATIVE
If the Franchise Agreement is signed by 2 or more individuals or by a Business Entity, you agree to designate in writing 1 individual or a Franchise Owner as the Designated Representative upon signing the Franchise Agreement. We have the right to rely solely on instructions of the Designated Representative concerning the operation of the Franchise Business until we receive a duly signed written notice changing the Designated Representative.
REGIONAL MANAGER
Your Management Responsibility. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual. You must designate an individual to serve as your Regional Manager.
Source: Item 15 — ITEM -15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 62–64)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, while active involvement is recommended, it is not strictly required. Stretch Zone does not mandate personal 'on-premises' participation from the franchisee. However, franchisees must designate a Regional Manager who is responsible for the day-to-day supervision of the business. This Regional Manager must devote their full-time efforts to managing the Stretch Zone location and complete the required training programs.
If the franchisee is a business entity, Stretch Zone recommends that at least one of the franchise owners participate directly in the operation, but again, it's not mandatory. Regardless of whether the franchisee chooses to be an owner-operator or hires a Regional Manager, they remain solely liable for the business's operation in accordance with the Franchise Agreement and Operations Manual. If the Regional Manager leaves, the franchisee must ensure the responsibilities are covered by themselves, their Designated Representative, or a Franchise Owner until a replacement is trained.
Stretch Zone emphasizes the importance of the Regional Manager's role, requiring them to complete specific training programs before managing the franchise. While franchisees have the option to hire someone else as Regional Manager, Stretch Zone acknowledges that doing so may lead to lower sales and/or higher costs compared to owner-operated locations. This suggests that while not required, active involvement by the franchisee could be beneficial for the business's success. Franchisees should carefully consider the implications of choosing to be an absentee owner versus an active participant.