What is Stretch Zone's role in advising franchisees during lease negotiations with third parties?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS AGREEMENT is signed on among Stretch Zone Franchising LLC (the "Franchisor");, a limited liability company (the "Landlord") and , LLC, a limited liability company (the |
|---|
| "Tenant/Franchisee"). |
| BACKGROUND |
| A. |
| The Tenant/Franchisee is a franchisee of the Franchisor under a Stretch Zone |
| Franchise Agreement between the Franchisor and the Tenant/Franchisee dated |
| (the "Franchise Agreement") for the operation of a Stretch Zone (the "Franchise Business"). |
| B. |
| The Landlord and the Tenant/Franchisee are parties to a Lease Agreement dated |
| (the |
| "Lease") |
| for |
| the |
| premises |
| located |
| at |
| (the |
| "Premises") |
| that |
| has |
| been |
| approved by the Franchisor on condition that all the parties sign this Agreement. |
| C. |
| In order to assure that a Franchise Business continues to operate at the Premises, |
| the Landlord grants certain rights to the Franchisor under the Lease to protect the Franchisor's |
| interest under the Franchise Agreement. |
| The parties agree as follows: |
| TERMS |
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)
Based on the 2025 Stretch Zone Franchise Disclosure Document, Stretch Zone's role in advising franchisees during lease negotiations is not explicitly detailed. However, the FDD does include a standard agreement that involves Stretch Zone, the landlord, and the franchisee, indicating that Stretch Zone must approve the lease. This agreement ensures that the franchise can continue operating at the premises by granting certain rights to Stretch Zone under the lease, protecting their interest in the Franchise Agreement.
Specifically, the agreement states that the premises must be approved by Stretch Zone, suggesting that Stretch Zone has some influence over the location and terms of the lease. Additionally, the agreement allows Stretch Zone to cure a franchisee's default under the lease and take over the premises to continue operating the franchise, further demonstrating Stretch Zone's vested interest in the lease agreement.
While the FDD does not specify the extent of Stretch Zone's advisory role during lease negotiations, the inclusion of the agreement and the rights it grants to Stretch Zone imply that franchisees may receive some level of guidance or approval from Stretch Zone regarding their lease terms. Prospective franchisees should inquire with Stretch Zone about the specific support and advice they offer during the lease negotiation process to fully understand the level of assistance provided.