What are the requirements for a Stretch Zone franchisee to open additional franchise businesses beyond the number listed in the Development Schedule?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) Additional Franchise Businesses. You agree that the Development Schedule is fixed upon signing this Agreement. You may not open additional
Franchise Businesses in excess of the number of Franchise Businesses listed above except upon:
- (i) our consent, which may be withheld in our complete discretion;
- (ii) your payment of the Initial Franchise Fee and the other fees we are then charging to new Franchisees; and
- (iii) your signing of our then-current form of Franchise 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 Stretch Zone's 2025 Franchise Disclosure Document, a franchisee needs to meet specific requirements to open additional franchise businesses beyond the number outlined in their Development Schedule. The Development Schedule is fixed upon signing the agreement.
To open additional Stretch Zone franchises beyond the Development Schedule, a franchisee must first obtain consent from Stretch Zone, which can be withheld at their discretion. Second, the franchisee must pay the then-current initial franchise fee and other fees that Stretch Zone is charging new franchisees at that time. Finally, the franchisee must sign Stretch Zone's then-current form of Franchise Agreement.
These stipulations ensure that Stretch Zone maintains control over its expansion and that franchisees who wish to grow beyond their initial agreement are up-to-date with the current franchise terms and fee structure. It also ensures that Stretch Zone can maintain its brand standards and operational consistency as it grows its franchise network.