Does signing the Stretch Zone Franchise Agreement constitute an admission of liability by any party?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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- No Admission of Liability. By signing this Agreement, no party admits any liability to the other or the truth or falsity of any allegation, statement, communication or fact discussed, disclosed or communicated in any manner, regarding any transaction, communication, contact, statement or action between the parties or in connection with this Agreement, the Franchise Agreement or the Guarantee signed by the parties.
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, signing the Franchise Agreement does not constitute an admission of liability by any party. Specifically, the document states that by signing the agreement, no party admits any liability to the other. This extends to any allegation, statement, communication, or fact discussed, disclosed, or communicated in any manner regarding any transaction, communication, contact, statement, or action between the parties. This also applies in connection with the Agreement, the Franchise Agreement, or the Guarantee signed by the parties.
This clause is included to ensure that the act of entering into the franchise agreement, or any related agreements, does not prejudice either party in potential future disputes. It allows both Stretch Zone and the franchisee to engage in the business relationship without the implication that either side is conceding fault for any past or present issues.
This type of clause is relatively standard in franchise agreements. It protects both the franchisor and franchisee from having the agreement itself used as evidence of liability in any future legal proceedings. Franchisees should still seek legal counsel to fully understand all aspects of the franchise agreement and their implications.