What is required as proof that a Stretch Zone franchisee has cured a non-monetary default?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Non-Monetary Defaults. With respect to non-monetary defaults, except as otherwise provided in Section 11.1 and 11.2, you have 30 days after delivery from us of a written Notice of Default specifying the nature of the default and what steps you must take to remedy any default. You must timely provide evidence of cure satisfactory to us. If you fail to cure any default within that time (or any longer time required by applicable law), you have committed an Event of Default giving us the right to terminate this Agreement. In addition to the Events of Default specified in Sections 11.1 and 11.2, it is an Event of Default if you fail to comply with any requirement imposed by this Agreement, as it may be revised or supplemented by the Operations Manual. You have the burden of proving that you properly and timely cured any default, to the extent we permit a cure under this Agreement.
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 the 2025 Stretch Zone FDD, if a franchisee is in non-monetary default, they have 30 days after receiving a written notice from Stretch Zone to correct the issue. The notice will specify the nature of the default and the steps required to fix it.
To prove that the default has been cured, the franchisee must provide evidence that is satisfactory to Stretch Zone. If the franchisee fails to provide sufficient evidence of cure within the given timeframe, it will be considered an Event of Default, which could lead to the termination of the Franchise Agreement.
The franchisee bears the responsibility of demonstrating that they have properly and promptly corrected any default, assuming Stretch Zone allows for a cure under the agreement. This places the onus on the franchisee to maintain thorough records and documentation of their corrective actions to ensure compliance and avoid potential disputes with Stretch Zone.