Is Stretch Zone responsible for its obligations under the agreement even if delegated to a Designee?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
"Designee" means one or more of our representatives who are independent contractors that we appoint to perform certain of our duties under this Agreement as described in ARTICLE 2.
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, a "Designee" is defined as one or more of Stretch Zone's representatives who are independent contractors appointed to perform certain duties under the agreement. While the document defines the term "Designee," it does not explicitly state whether Stretch Zone remains responsible for its obligations if those duties are delegated to a Designee.
Because the FDD does not address this specific question, it is important for a prospective franchisee to seek clarification from Stretch Zone regarding their liability for obligations delegated to a Designee. Understanding the extent to which Stretch Zone remains responsible is crucial for assessing the potential risks and liabilities associated with the franchise.
Specifically, a potential franchisee should ask Stretch Zone: If Stretch Zone delegates certain duties to a Designee, does Stretch Zone still remain liable and responsible for those obligations under the agreement? If so, under what conditions would Stretch Zone not be held responsible?