What is the typical geographic scope of a Stretch Zone Development Area?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
We grant you a Development Area that will be described in the Map attached as Exhibit A to the Area Development Agreement. The Development Area is usually based on a city or county basis, or a Designated Marketing Area depending on the number of Franchised Units to be developed.
We do not grant to you exclusive rights within the Development Area. You may face competition from other Franchised Units, Company-Owned Units, or from other channels of distribution or competitive brands that we control. We grant you the right to construct, open and operate Franchise Businesses within the Development Area pursuant to a Development Schedule under which you must open a specified number of Franchise Business within a specified time. The Development Area will usually be a city or county. We will grant each Franchised Unit you open within the Development Area a Limited Protected Territory under the applicable franchise agreement. For the perimeter of the Development Area, you agree that you will not select a site that is within the limited protected territory of a Company-Owned Unit or Franchised Unit that is operating or under construction.
We must approve the location for all future Franchised Units that you develop and the Limited Protected Territory (to be granted under the applicable franchise agreement) for each of these Franchised Units. Our then current standards for sites and territories will apply.
Source: Item 12 — ITEM -12 TERRITORY (FDD pages 54–58)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, a Development Area is granted to developers but without any minimum territory guaranteed. The Development Area's size and scope are detailed in a map attached as Exhibit A to the Area Development Agreement. Typically, a Stretch Zone Development Area is based on a city or county. In some cases, it may be based on a Designated Marketing Area, depending on the number of franchised units to be developed within that area.
It is important to note that Stretch Zone does not grant exclusive rights within a Development Area. This means a developer may face competition from other franchised units, company-owned units, or other channels of distribution or competitive brands that Stretch Zone controls. The developer has the right to construct, open, and operate franchise businesses within the Development Area according to a Development Schedule, which specifies the number of franchise businesses to be opened within a specific time frame. Each franchised unit opened within the Development Area will be granted a Limited Protected Territory under the applicable franchise agreement.
When selecting a site within the Development Area, a developer must ensure that the site is not within the limited protected territory of a company-owned unit or franchised unit that is operating or under construction. Stretch Zone must approve the location for all future franchised units that the developer intends to develop, as well as the Limited Protected Territory for each of these franchised units. The franchisor's current standards for sites and territories will apply during the approval process. Therefore, a prospective franchisee should carefully review Exhibit A to understand the specific geographic boundaries and potential competition within their Development Area.