What roles are franchisees required to designate or employ for their Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ence in our development, operation and franchising; (b) our marketing and promotional programs for Franchise Businesses; (c) knowledge of specifications for and knowledge of our suppliers of certain materials, equipment, furniture and fixtures for a Franchise Business; and (d) knowledge of our customer lists, operating results and financial performance.
We will disclose to you the Confidential Information required for the operation of the Franchise Business during our training programs, in the Operations Manual, and in the guidance and assistance that we furnish you, and you may learn of additional Confidential Information. You may disclose the Confidential Information to your employees or other persons only to the extent reasonably necessary and provided the person has signed our form of Confidentiality and Non-Competition Agreement contained in the Operations Manual before disclosure. You agree, during and after the Initial Term, that you, your Franchise Owners, employees and independent contractors will: (i) not use the Confidential Information in any other business or capacity, including any derivative or spin-off of the body stretching concept; (ii) maintain the absolute secrecy and confidentiality of the Confidential Information during and after the Initial Term; (iii) not make unauthorized copies of any portion of the Confidential Information disclosed or recorded in written or other tangible form or electronic form; and (iv) adopt and implement all procedures that we require to prevent unauthorized use or disclosure of, or access to, the Confidential Information. You agree that any suggestions you make that we incorporate into the Business System are our exclusive property.
We also consider our Trade Dress (that is, elements of the Stretch Zone method and style of doing business) inherently and uniquely distinctive and protectable under applicable Federal and state law.
Nothing contained in the Franchise Agreement prohibits you from using the Confidential Information in the operation of your Franchise Business under the terms of your Franchise Agreement.
ITEM -15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
YOUR PERSONAL PARTICIPATION
You are not our employee. You are your own boss running your own business subject to our rights under your Franchise Agreement. You acknowledge and agree that your Franchise Business is not a "passive" investment. We recommend that you be active in the operation of your Franchise Business, but we do not require any personal "on-premises" participation by you. As discussed
below, however, you must designate an individual to serve as your Regional Manager. You must also have at least one Certified Stretch Zone Practitioner. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual, regardless of whether you choose to operate the Franchise Business as a full-time owner/operator or hire another individual to serve as your Regional Manager.
BUSINESS ENTITY FRANCHISEE
If you are a Business Entity, we recommend that one or more of the Franchise Owners participate personally in the direct operation of the Franchise Business, but we do not require any personal "on-premises" participation by a Franchise Owner. As discussed below, however, you must designate an individual to serve as your Regional Manager. At least one person must be a Certified Stretch Zone Practitioner. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual, regardless of whether you choose to operate the Franchise Business as a full-time owner/operator or hire another individual to serve as your Regional Manager. Under the Franchise Agreement and the Area Development Agreement, each owner of a direct or indirect interest in you of 20% or more must sign the applicable Guaranty attached as Exhibit G, under the terms of which those owners promise to be personally bound, jointly and severally, by all of the applicable agreement's provisions. In addition, at our request, the spouse of each guaranteeing owner (as applicable) will execute the Guaranty.
DESIGNATED REPRESENTATIVE
If the Franchise Agreement is signed by 2 or more individuals or by a Business Entity, you agree to designate in writing 1 individual or a Franchise Owner as the Designated Representative upon signing the Franchise Agreement. We have the right to rely solely on instructions of the Designated Representative concerning the operation of the Franchise Business until we receive a duly signed written notice changing the Designated Representative.
REGIONAL MANAGER
Your Management Responsibility. You are solely liable and responsible for the operation of the Franchise Business in accordance with the terms of the Franchise Agreement and the Operations Manual. You must designate an individual to serve as your Regional Manager.
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 the 2025 Stretch Zone Franchise Disclosure Document, franchisees must designate a Regional Manager and have at least one Certified Stretch Zone Practitioner. While Stretch Zone recommends that franchisees actively participate in the operation of the franchise, they do not require personal on-premises participation. However, franchisees are responsible for the franchise's operation, regardless of whether they operate it themselves or hire a Regional Manager. If the franchise is owned by a business entity, Stretch Zone recommends that at least one owner participate directly in the business, but this is not mandatory.
Stretch Zone requires that if the Franchise Agreement is signed by two or more individuals or a Business Entity, the franchisee must designate one individual or Franchise Owner as the Designated Representative. Stretch Zone can rely on the Designated Representative's instructions until written notice of a change is received. The Regional Manager is responsible for the day-to-day supervision of the franchise and must devote their full-time efforts to the business. The Regional Manager must complete Stretch Zone's training programs before managing the franchise, unless otherwise agreed in writing by Stretch Zone.
If a Regional Manager leaves or cannot fulfill their obligations, the franchisee, Designated Representative, or a Franchise Owner must cover those responsibilities until a new Regional Manager is appointed and trained. The franchisee is responsible for the expenses associated with training any replacement Regional Manager, including the standard training fees. The Regional Manager does not need to have an equity interest in the Business Entity if they are hired rather than being the franchisee or the Designated Representative. The Regional Manager and other employees with access to the Operations Manual and Confidential Information must sign a Confidentiality and Non-Competition Agreement.