What site selection criteria does Stretch Zone provide to franchisees?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 2.1 SITE SELECTION ASSISTANCE
- (a) Our Approval of Site. You must obtain our written approval of the proposed site for the Premises for your Franchise Business before you sign a lease or begin any construction.
- (b) Site Selection Criteria. We will supply you our site selection criteria that includes (a) population demographics within a 3-mile radius of the site; (b) information regarding traffic counts and patterns; (c) number of parking spaces; (d) visibility from the roadways; (e) the predominant character of the neighborhood; (f) competitive businesses within the area; (g) the nature of other businesses in proximity to the site; and (h) the size, appearance and other physical characteristics of the site. Within 30 days after signing this Agreement, you must find a site within the Site Selection Area that you believe meets our criteria. You must send to us all material information regarding the proposed site including pictures of the site. We will not unreasonably withhold our approval of any site meeting our standards. We will review site approval submissions on a first-in basis but within 30 days of your submission. If we do not approve the site, you have 30 days in which to submit a new site within the Site Selection Area for our written approval. If you fail to do so in a timely manner, or we and you cannot agree on a site within 120 days after the Agreement Date, we have the right to terminate this Agreement and retain 100% of the Initial Franchise Fee (as defined in Section 3.1(a)). You will be required to sign the Franchise Termination and Release Agreement included as Exhibit N to the FDD.
- (c) No Special Expertise. WE DO NOT REPRESENT THAT WE HAVE ANY SPECIAL EXPERTISE IN SELECTING SITES FOR THE OPERATION OF A FRANCHISE BUSINESS. OUR APPROVAL OF A SITE IS NOT A REPRESENTATION OR WARRANTY THAT THE FRANCHISE BUSINESS WILL BE PROFITABLE OR THAT YOUR SALES WILL ATTAIN ANY PREDETERMINED LEVELS. OUR APPROVAL IS ONLY OUR INDICATION THAT THE PROPOSED SITE MEETS OUR MINIMUM CRITERIA FOR IDENTIFYING SITES.
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 the 2025 Stretch Zone Franchise Disclosure Document, franchisees must obtain written approval of their proposed site before signing a lease or beginning construction. Stretch Zone will supply its site selection criteria, which includes several factors to consider. These factors include population demographics within a 3-mile radius, information on traffic patterns and counts, the number of parking spaces available, and the site's visibility from roadways.
Additional criteria include the predominant character of the neighborhood, the presence of competitive businesses in the area, the nature of other businesses near the site, and the size, appearance, and other physical characteristics of the site itself. Franchisees have 30 days after signing the agreement to find a site within the designated Site Selection Area that meets Stretch Zone's criteria and submit all relevant information, including pictures of the site, for approval.
Stretch Zone reviews site approval submissions on a first-in basis and aims to complete the review within 30 days of submission. If Stretch Zone does not approve the initial site, the franchisee has another 30 days to submit a new site for approval. If an agreement on a site cannot be reached within 120 days after the Agreement Date, Stretch Zone has the right to terminate the agreement and retain 100% of the Initial Franchise Fee.
The FDD also states that Stretch Zone does not represent having special expertise in selecting sites and that site approval is not a guarantee of profitability or specific sales levels. It only indicates that the proposed site meets Stretch Zone's minimum criteria.