Under the Stretch Zone Area Development Agreement, what law governs the interpretation of the Development Agreement, excluding matters governed by specific US Acts?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 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. |
Source: Item 19 — ITEM -19 FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 73–76)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, Section 9.1 of the Area Development Agreement specifies that Florida law governs the interpretation of the Development Agreement. This is with the exception of matters governed by the United States Trademark Act of 1946, the United States Copyright Act, or the United States Arbitration Act, and is also subject to applicable state law.
This means that if there are disputes regarding the Area Development Agreement, a court would primarily look to Florida law for guidance in interpreting the contract, unless the dispute falls under the purview of specific federal laws like trademark, copyright, or arbitration acts. State law may also take precedence.
For a prospective Stretch Zone area developer, this clause is important because it establishes the legal framework that will be used to resolve any contractual disagreements. It is crucial to understand Florida law and how it applies to franchise agreements. Franchisees should consult with a legal professional to fully understand their rights and obligations under the Area Development Agreement and how Florida law may impact their investment.