Who is responsible for the expenses associated with training a replacement Regional Manager for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Change in Regional Manager. If the Regional Manager fails to satisfy his or her obligations provided in Subsection 4.6(c) of the Franchise Agreement due to death, disability, termination of
employment or for any other reason, you, your Designated Representative, or a Franchise Owner will satisfy these obligations until you designate a new Regional Manager who has successfully completed our then-current training requirements (for which you must pay us the applicable training fees). You are solely responsible for the expenses associated with training any replacement Regional Manager, including the then-prevailing standard training fees we charge.
Source: Item 15 — ITEM -15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 62–64)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the franchisee is solely responsible for the expenses associated with training any replacement Regional Manager. This includes covering the then-prevailing standard training fees charged by Stretch Zone.
This means that if a Regional Manager leaves due to reasons such as death, disability, termination of employment, or any other reason, the franchisee must bear the costs of training their replacement. This responsibility extends to ensuring the new Regional Manager completes Stretch Zone's then-current training requirements before managing the franchise business. The franchisee, their Designated Representative, or a Franchise Owner must cover the Regional Manager's duties until a replacement is fully trained.
This is a standard practice in franchising, where franchisees typically bear the costs of training their employees. However, prospective Stretch Zone franchisees should factor in these potential training expenses when budgeting for their business. It's important to inquire about the current training fees and the estimated costs associated with replacing and training a Regional Manager to better understand the financial implications.