What section of the Stretch Zone Franchise Agreement necessitates the parties to enter into the Approved Location Addendum?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS APPROVED LOCATION ADDENDUM is signed on between Stretch Zone Franchising LLC ("we, "us" or "our") and ("you" |
|---|
| or "your"). |
| BACKGROUND |
| A. |
| The |
| parties |
| have |
| signed |
| a |
| Stretch |
| Zone |
| Franchise |
| Agreement |
| on |
| (the "Franchise Agreement") before you selected a location that we had |
| approved for the Franchise Business. |
| B. |
| You have now selected a location that we have approved and, under Section 1.2 of |
| the Franchise Agreement, the parties are entering into this Addendum. |
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 Stretch Zone's 2025 Franchise Disclosure Document, Section 1.2 of the Franchise Agreement requires the parties to enter into the Approved Location Addendum. Specifically, this addendum is used when the premises for the Stretch Zone franchise are yet to be determined at the time of signing the Franchise Agreement.
Section 1.2(b) clarifies that if the premises do not exist when the agreement is signed, the location will be one that the franchisee selects and Stretch Zone approves within a designated Site Selection Area. The Approved Location Addendum, which is included as Exhibit D to the FDD, will then describe the approved location. This addendum is signed at the time the location is approved.
This process ensures that both Stretch Zone and the franchisee agree on the location before the business begins operations. The addendum serves as a formal acknowledgment and agreement regarding the specific location, which is crucial for defining the franchisee's operational area and territorial rights.