What is required of Stretch Zone regarding the new location of a franchise after a casualty?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Casualty. If the Premises are substantially destroyed by fire or other casualty, we permit you 30 days to obtain new Premises within your Limited Protected Territory. The relocated Premises must not infringe upon the Limited Protected Territory of a Company-Owned Unit or another Franchised Unit then operating or under development. We must approve the new location in writing in accordance with Section 2.1 of the Franchise Agreement. During the period when your Franchise Business is not in operation due to the relocation of the Premises, you are not required to spend the minimum Local Advertising Contributions. You have 60 days from the date you sign the new lease in which to open and begin operating the Franchise Business, unless we otherwise agree in writing to extend the time. Your failure to secure a new location and begin operation within the specified times is an Event of Default on your part.
Source: Item 12 — ITEM -12 TERRITORY (FDD pages 54–58)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, if a franchised location is substantially destroyed by fire or other casualty, the franchisee has 30 days to obtain new premises within their Limited Protected Territory. The new location must not infringe upon the Limited Protected Territory of a Company-Owned Unit or another Franchised Unit that is already operating or under development. Stretch Zone must approve the new location in writing, following the guidelines in Section 2.1 of the Franchise Agreement.
During the period when the Stretch Zone franchise is not operating due to relocation, the franchisee is not required to spend the minimum Local Advertising Contributions. The franchisee has 60 days from the date they sign the new lease to open and begin operating the franchise business, unless Stretch Zone agrees in writing to extend the time. Failure to secure a new location and begin operation within the specified time frame constitutes an Event of Default on the franchisee's part.
These stipulations are fairly standard in the franchise industry, as they protect both the franchisee's investment and the integrity of the Stretch Zone brand. The relocation guidelines ensure that the franchisee can resume operations in a suitable location without undue delay, while also preventing conflicts with other Stretch Zone locations. The written approval requirement allows Stretch Zone to maintain quality control and consistency across all franchise locations.