Does the transferee in a Stretch Zone franchise transfer need to complete an application?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
to state law, any informal dispute resolution, | | | | mediation or arbitration proceeding must be conducted | | | | where our principal office is located when the demand is | | | | requested. Any litigation to enforce the Area | | | | Development Agreement must be filed in the courts | | | | where our principal office is located when litigation is | | | | filed (currently Broward County, Florida). | | w. Choice of law1 | Section 9.1 | Except to the extent governed by the United States | | | | Trademark Act of 1946, the United States Copyright Act | | | | or the United States Arbitration Act, , and subject to | | | | applicable state law, the Development Agreement is | | | | interpreted under the laws of Florida. |
| Provision | Section in Franchise Agreement | Summary |
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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 transferee must complete an application as part of the transfer approval process. Specifically, the franchisor must approve the transferee, and the transferee must satisfactorily complete Stretch Zone's application procedures.
In practical terms, this means that if a franchisee wants to sell their Stretch Zone franchise, the potential buyer will need to go through a formal application process with Stretch Zone. This process likely involves providing detailed information about their background, financial qualifications, and business experience. Stretch Zone retains the right to reject a potential buyer who does not meet their standards.
This requirement is a standard practice in franchising, as it allows Stretch Zone to maintain control over who operates its branded locations. It ensures that new franchisees are qualified and capable of upholding the brand's standards. Additionally, the transferee must successfully complete Stretch Zone's Franchisee Training Program and other then-current training requirements.
Besides completing the application, the transferee also needs to sign a new franchise agreement, which may contain different terms and conditions than the original agreement. The transferee will not have to pay a new initial franchise fee. A transfer fee of $10,000 must be paid by either the seller or the buyer, and the parties must sign Stretch Zone's transfer form.