What tangible costs will Stretch Zone reimburse if a franchisee must comply with a modification or discontinuation of a copyrighted work?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
If we deem it advisable to modify or discontinue use of any copyrighted work and/or use one or more new or derivative copyrighted works, you must do so and our sole obligation in this event is to reimburse you for your tangible costs (for example, changing materials) of complying with this obligation.
Source: Item 14 — ITEM -14 PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 60–62)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, if Stretch Zone deems it necessary to modify or discontinue the use of any copyrighted work, franchisees must comply with this decision. In such instances, Stretch Zone's sole obligation is to reimburse franchisees for their tangible costs associated with complying with this modification or discontinuation.
This reimbursement is specifically limited to tangible costs. The FDD provides an example, stating that this could include the cost of changing materials. This implies that Stretch Zone will not cover intangible costs such as lost profits, time spent on the changes, or potential business disruption.
For a prospective Stretch Zone franchisee, this means that while Stretch Zone will help offset some of the direct expenses incurred from these changes, franchisees should be prepared to absorb any indirect or intangible costs. It is important for potential franchisees to factor in these potential costs when evaluating the overall financial implications of investing in a Stretch Zone franchise.