What right does Stretch Zone grant to the franchisee within the Development Area?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement. This minimum performance standard is not a financial performance representation and does not infer that you will experience Gross Revenues of any particular level.
Our Right to Modify the Limited Protected Territory. We may not unilaterally alter your Limited Protected Territory. The parties may alter the Limited Protected Territory by a written amendment to the Franchise Agreement signed by the parties. If you breach the Franchise Agreement and fail to timely cure, we may reduce the size of your Limited Protected Territory or terminate the Franchise Agreement.
ALTERNATE METHODS OF DISTRIBUTION.
We do not employ alternate methods of distribution, including the Internet, to make sales within your Limited Protected Territory using the Principal Trademark or to make sales within your Limited Protected Territory of products and services under trademarks other than the Principal Trademark.
NO COMPENSATION TO YOU
We will not compensate you for any of these sales made within your Limited Protected Territory.
RESTRICTIONS ON ADVERTISING AND OPERATING OUTSIDE OF LIMITED PROTECTED TERRITORY
You will not solicit business from consumers outside your DMA, including through other channels of distribution, such as the Internet, catalog, sales, telemarketing, or other direct marketing. You must operate the Franchise Business only at the location described in Section 1.2 of the Franchise Agreement. You do not have the right to use other channels of distribution to provide services to customers without our prior written consent.
OUR OPERATION OF A SIMILAR BUSINESS UNDER A DIFFERENT MARK
Neither we nor any affiliate operate or have plans to operate or franchise a business under a different trademark that sells or will sell goods or services similar to those you will offer.
Area Development Agreement
NO MINIMUM TERRITORY
You are not obtaining any minimum territory as a Developer but we grant you a Development Area described below.
RELOCATION RIGHTS
There are no written conditions under the Area Development Agreement allowing you to relocate the Franchise Business.
DEVELOPMENT AREA
We grant you a Development Area that will be described in the Map attached as Exhibit A to the Area Development Agreement.
Source: Item 12 — ITEM -12 TERRITORY (FDD pages 54–58)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, a franchisee receives the right to construct, open, and operate franchise businesses within a defined Development Area, according to a Development Schedule that specifies the number of units to be opened within a certain timeframe. This Development Area is typically based on a city, county, or Designated Marketing Area, depending on the number of franchise units to be developed. However, Stretch Zone does not grant exclusive rights within the Development Area, meaning franchisees may face competition from other franchised units, company-owned units, alternative distribution channels, or competitive brands controlled by Stretch Zone. Each franchised unit opened within the Development Area will be granted a Limited Protected Territory under the franchise agreement. Franchisees must also ensure that any site they select is not within the limited protected territory of an existing company-owned or franchised unit.
Stretch Zone retains the right to approve the location for all future franchised units that the franchisee develops, including the Limited Protected Territory granted to each unit under the franchise agreement. The approval process will be based on Stretch Zone's current standards for sites and territories.
It is important to note that Stretch Zone does not provide any compensation to the franchisee for sales made within the Development Area. Furthermore, while Stretch Zone does not currently employ alternate methods of distribution within the Development Area using the principal trademark, they retain the right to do so in the future, subject to any restrictions in the existing franchise agreement. This means that Stretch Zone could potentially utilize the Internet or other channels to make sales within the franchisee's Development Area without providing any compensation.