For which states does Stretch Zone require amendments to the Franchise Disclosure Document and Franchise Agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The States of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin require that we amend the Franchise Disclosure Document and Franchise Agreement to conform to their state's franchise laws as part of the state's registration and approval of the franchise offering. We must do this before we offer or sell any franchises intended to be operated in those states or to residents of these states. If we have registered in any of these states, attached are the applicable Addendum to Franchise Disclosure Document in this Exhibit and Addenda to Franchise Agreement and Area Development Agreement (in Exhibit F) that apply only to residents of that state and/or where the Stretch Zone Franchise will be operated in that state.
Source: Item 22 — ITEM -22 CONTRACTS (FDD pages 84–89)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the brand must amend its Franchise Disclosure Document and Franchise Agreement to comply with state franchise laws for the states of California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. These amendments are necessary as part of the registration and approval process required by these states before Stretch Zone can offer or sell franchises within their jurisdictions or to their residents.
The FDD includes addenda to the Franchise Disclosure Document and Area Development Agreement that apply specifically to residents of these states or where the Stretch Zone franchise will operate. For example, the California addendum notes that the California Franchise Investment Law requires that a copy of all proposed agreements relating to the sale of the franchise be delivered together with the Franchise Disclosure Document.
Prospective franchisees in these states should carefully review the state-specific addenda to understand how the standard franchise agreement is modified to comply with local laws. These addenda can cover a range of topics, including fee deferrals, waivers of claims, interest rates, and rights concerning transfer, termination, or nonrenewal of a franchise. Understanding these state-specific modifications is crucial for franchisees to be aware of their rights and obligations under the franchise agreement within their particular state.