Under what circumstances can the Stretch Zone Area Development Agreement be modified?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Area Development Agreement | Summary |
|---|---|---|
| Area Development Agreement. You may not transfer the Area Development Agreement. | ||
| n. Our right of first | Not Applicable | Not Applicable |
| refusal to acquire | ||
| your business | ||
| o. Our option to | Not Applicable | Not Applicable |
| purchase your | ||
| business | ||
| p. Your death or | Not Applicable | Not Applicable |
| disability | ||
| q. Non-competition | Not Applicable | Not Applicable |
| covenants during the | ||
| term | ||
| r. Non-competition | Not Applicable | Not Applicable |
| covenants after the | ||
| agreement is | ||
| terminated or expires | ||
| s. Modification of the agreement | Section 9.2 | Your Area Development Agreement may not be modified without the consent of both you and us except: 1. We may change the contents of the Manuals; 2. We may modify the Business System; and 3. A court may modify any provision in accordance with applicable law. |
Source: Item 17 — ITEM -17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 65–73)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Area Development Agreement can only be modified with the consent of both the franchisee and Stretch Zone, with a few exceptions. Stretch Zone has the right to unilaterally change the contents of its manuals and modify the business system. Additionally, a court may modify any provision in accordance with applicable law.
This means that as a prospective Stretch Zone area developer, you have limited ability to negotiate changes to the Area Development Agreement after signing. While mutual consent is generally required for modifications, Stretch Zone retains the power to alter the manuals and business system, which could impact how you operate your franchise.
The possibility of court-ordered modifications provides a safeguard, but relying on legal action to change the agreement is a costly and uncertain path. Therefore, it is crucial to carefully review and understand the terms of the Area Development Agreement before signing, as your ability to change them later will be restricted.