What is the transfer fee for a Stretch Zone franchise transfer?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| and a transfer to any other original Franchise Owner is not considered a transfer. | ||
| l. Our approval of | Sections 10.2 | |
| transfer by you | and 10.3 | We have the right to approve or disapprove of any transfers. |
| m. Conditions for our approval of transfer | Sections 10.2 and 10.3 | 1. You must give us written notice 2. We do not exercise our right of first refusal; 3. You are not in default under any agreement you have with us or any Affiliate; 4. The transferee must satisfactorily complete our application procedures; 5. We must interview and approve the transferee; 6. The transferee must sign a new franchise agreement that may impose materially different terms and conditions than those in your original Franchise Agreement but the transferee will not have to pay a new Initial Franchise Fee; 7. You or the transferee must pay a transfer fee of $10,000; 8. The transferee must properly assume all your obligations, including your lease; 9. You must sign a Franchise Termination and Release Agreement of us attached as Exhibit N; 10. The transferee must successfully complete our Franchisee Training Program and our other then-current training requirements. 11. The parties must sign our transfer form. Your buyer will be asked to sign a contract with materially different terms and conditions than your |
Source: Item 17 — ITEM -17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 65–73)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, a franchisee who wishes to transfer their franchise must pay a transfer fee of $10,000. This fee is payable either by the franchisee (the seller) or the transferee (the buyer).
However, paying the transfer fee is only one of several conditions that must be met for Stretch Zone to approve the transfer. The selling franchisee must provide written notice to Stretch Zone, and Stretch Zone must not exercise its right of first refusal to purchase the franchise. The franchisee must not be in default of any agreements with Stretch Zone or its affiliates. The prospective buyer must complete the application process, be interviewed, and be approved by Stretch Zone.
Furthermore, the buyer must sign Stretch Zone's current franchise agreement, which may contain significantly different terms than the seller's original agreement. The buyer must also assume all of the seller's obligations, including the lease agreement for the premises. The seller must sign a Franchise Termination and Release Agreement, releasing Stretch Zone from any further obligations. The buyer must also complete the Franchisee Training Program. Finally, both parties must sign Stretch Zone's transfer form to complete the transfer process.
It is important to note that a transfer to another original franchisee is not considered a transfer under the terms of the Franchise Agreement.