Does Stretch Zone require franchisees to obtain all necessary permits, licenses, and architectural seals?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Prohibitions. You will not employ any of the Intellectual Property in signing any contract, check, negotiable instrument or legal obligation, application for any license or permit, or in a manner that may result in liability to us for any indebtedness or obligation of yours.
Section 12.5 DISTINGUISHING OPERATIONS
- (b) De-Identification. You must immediately remove all identifying architectural superstructure and signage on, about or in the Premises bearing the name or logos of Stretch Zone (or any name or logo similar to Stretch Zone), in the manner we specify.
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 franchisees are required to obtain all necessary permits, licenses, and architectural seals. However, the document does state that franchisees will not employ any of the Intellectual Property in signing any application for any license or permit, or in a manner that may result in liability to Stretch Zone for any indebtedness or obligation of yours. This implies that franchisees are responsible for obtaining their own licenses and permits, but they cannot use Stretch Zone's intellectual property in a way that could create liability for the franchisor.
Additionally, the FDD states that if a franchisee defaults under the lease, Stretch Zone has the right to cure the default and operate the franchise business. In the event of termination or expiration of the franchise agreement, the franchisee must remove all identifying architectural superstructure and signage bearing the Stretch Zone name or logos. This suggests that franchisees are responsible for any necessary modifications to the premises to comply with these requirements.
While the FDD does not provide explicit details on the franchisee's obligations regarding permits, licenses, and architectural seals, it does outline the franchisee's responsibility in maintaining compliance and distinguishing their operations from Stretch Zone's in certain situations. A prospective franchisee should seek clarification from Stretch Zone regarding the specific requirements for obtaining necessary permits, licenses, and architectural seals, as well as any support or guidance the franchisor provides in this process.