What is the total number of Stretch Zone franchises that Drew Brees has Area Development Rights for?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
laim the representations we made in this FDD. Any representations or promises outside the FDD and the Area Development Agreement may not be enforceable. | | u. Dispute resolution by arbitration or mediation1 | Section 9.1 | All disputes must be resolved first by informal dispute resolution and, if unsuccessful, by mediation and, if mediation is not successful, then by arbitration except claims involving: 1. The Intellectual Property; 2. Any lease or sublease of real property; 3. Your obligations upon termination or expiration of your Area Development Agreement; 4. Any transfers; 5. Matters involving claims of danger, health or safety; and 6. Requests for restraining orders, injunctions or similar procedures. You must waive your rights to a jury trial and claims for punitive damages. |
| Provision | Section in Area Development Agreement | Summary |
|---|---|---|
| v. Choice of forum1 | Section 9.1 | Subject to state law, any informal dispute resolution, |
| mediation or arbitration proceeding must be conducted | ||
| where our principal office is located |
Source: Item 18 — ITEM -18 PUBLIC FIGURES (FDD page 73)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, Drew Brees, through Brees Company, Inc. (BCI), was granted Area Development Rights for 20 Stretch Zone franchises. These franchises are to be located in the greater New Orleans, Indianapolis, and San Diego areas. This agreement was part of a Celebrity Endorsement Agreement effective January 2021, where Brees agreed to provide marketing services for Stretch Zone and allow the use of his name and likeness in their advertising.
In exchange for Brees' endorsement and licenses, Stretch Zone agreed to several terms, including granting him Area Development Rights. Besides the Area Development Rights, Brees also received a guaranteed minimum annual payment, a position on the Management Committee, Unit Appreciation Rights, and a Right of First Refusal for franchises in Orange County, California.
The initial agreement was amended in June 2023 to extend the term to December 31, 2028, increase the guaranteed minimum annual payment, and issue certain Class C units of Stretch Zone's Parent company to Brees. This demonstrates a continued and strengthened relationship between Stretch Zone and Drew Brees, leveraging his public image to promote the franchise concept.