What is Stretch Zone required to do with the financial information obtained from franchisees?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Except as may be stated in the FDD, neither we, nor any of our Affiliates, nor any of our or our Affiliates' officers, agents, employees, or representatives have made any representation to you, express or implied, as to the historical revenues, earnings, or profitability of any Stretch Zone business or the anticipated revenues, earnings, or profitability of your Franchise Business or any other business operated by us, our licensees, our franchisees, or our Affiliates. Any information you have acquired from other Stretch Zone franchisees regarding their sales, profits or cash flows is not information obtained from us, and we make no representation about that information's accuracy.
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)
Based on the 2025 Stretch Zone Franchise Disclosure Document, there is no mention of Stretch Zone being required to do anything specific with financial information obtained from franchisees. The document does not outline any obligations on Stretch Zone's part regarding the handling, reporting, or use of franchisee financial data.
However, the FDD does state that franchisees acknowledge they have conducted their own independent investigation of the business venture and that Stretch Zone has not made any representations about the historical or anticipated revenues, earnings, or profitability of any Stretch Zone business, except as stated in the FDD. It also states that any information acquired from other Stretch Zone franchisees regarding their sales, profits, or cash flows is not information obtained from Stretch Zone, and Stretch Zone makes no representation about that information's accuracy.
Therefore, a prospective franchisee should directly ask Stretch Zone about their policies and procedures regarding the collection, storage, use, and protection of franchisee financial data. This would include understanding if and how this data is used for benchmarking, performance analysis, or any other purpose, and what measures are in place to ensure confidentiality and data security.