What topics are defined in Article 7 of the Stretch Zone agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ARTICLE 7 - DEFINITIONS
Section 7.1 DEFINITIONS
As used in this Agreement, the following terms have the following meanings:
"Agreement" means this Stretch Zone Development Agreement, as it may be amended, supplemented or otherwise modified by a written agreement the parties sign.
"Agreement Date" means the date set forth on page 1 of this Agreement.
"Area Development Rights" mean the rights granted to you under ARTICLE 1 to develop and open number (#) Franchise Businesses in the Development Area under the terms of this Agreement.
"Company-Owned Business" means a Stretch Zone business operating pursuant to the Business System that is owned by us or by any affiliate.
"Designee" means one or more of our representatives who are independent contractors that we appoint to perform certain of our duties under this Agreement as described in ARTICLE 2.
"Development Area" means territory.
"Development Fee" means the fee described in Section 3.1.
"Development Schedule" means the number of Franchise Businesses to be developed and the period in which to open the number (#) Franchise Businesses, as stated in Section 1.3.
"Franchise Agreement" means the then-standard form of Stretch Zone Franchise Agreement we are offering to new franchisees, the current form of which is included in Exhibit C to the Franchise Disclosure Document.
"Franchise Business" means a Stretch Zone Franchise that we authorize you to develop and open under this Agreement.
"Franchise Disclosure Document" or "FDD" means our current Franchise Disclosure Document and all Exhibits.
"Term" means the term of the Agreement described in Section 3.2.
Section 7.2 OTHER DEFINITIONAL PROVISIONS
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, Article 7 defines key terms used within the Stretch Zone Development Agreement. These definitions are crucial for understanding the legal and operational aspects of the agreement between Stretch Zone and the area developer.
Specifically, Article 7 defines terms such as "Agreement" to mean the Stretch Zone Development Agreement itself, including any amendments. It also defines "Agreement Date" as the date the agreement was signed. The "Area Development Rights" define the rights granted to the developer to open franchise businesses within a specific territory. Other defined terms include "Company-Owned Business," "Designee," "Development Area," "Development Fee," "Development Schedule," "Franchise Agreement," "Franchise Business," "Franchise Disclosure Document" or "FDD," and "Term".
These definitions provide clarity and prevent ambiguity in the interpretation of the agreement. By outlining the precise meaning of these terms, Stretch Zone ensures that both parties have a shared understanding of their rights and obligations under the Development Agreement. This reduces the potential for disputes and misunderstandings during the course of the franchise relationship.