Under what circumstances is a Stretch Zone franchisee required to pay 'Enforcement Costs'?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
pplied based on our experience. Except for items you must purchase from us, as described above, neither we nor any of our Affiliates are Approved Suppliers.
RELATED SUPPLIERS
Our Chief Information Officer, Keith Trawick, holds a majority interest in one of our software licensors, KnetK LLC; otherwise, no officer of ours has an ownership interest in any third-party supplier.
APPROVAL OF ALTERNATE SUPPLIERS
Criteria. Our criteria for alternate supplier approval are not available to you.
Contact with Alternate Suppliers. If you propose to purchase or lease any equipment, supplies, inventory, advertising materials, construction services or other products or services that
are not proprietary to us or an Affiliate from an unapproved supplier, you must submit to us a written request for approval, or request the supplier to do so itself.
Procedures for Our Approval. We have the right to require, as a condition of our approval, that the supplier permit our representatives to inspect its facilities. If we request, the supplier will deliver samples to us or to our designated independent, certified laboratory for testing. We are not liable for damage to any sample that may result from the testing process.
Fees. You will pay a charge not to exceed the reasonable cost of the inspection and the actual cost of the testing (estimated to range from $250 to $1,500). We may also require as a condition to its approval, that the supplier present satisfactory evidence of insurance, for example, product liability insurance, protecting our Franchisees and us from all claims from the use of the item within the Business System.
Time Period for Notices. We will give you written notice of our approval or disapproval by regular mail withi
Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, a franchisee may incur costs related to supplier approval. If a franchisee wishes to purchase or lease equipment, supplies, inventory, advertising materials, construction services, or other non-proprietary products/services from a supplier not already approved by Stretch Zone, a specific process must be followed.
The franchisee or the unapproved supplier must submit a written request for approval. As part of the approval process, Stretch Zone has the right to inspect the supplier's facilities and may require the supplier to provide samples for testing at an independent, certified laboratory. The franchisee is responsible for covering the costs associated with these inspections and tests.
The fees for inspection and testing will not exceed the reasonable cost of the inspection and the actual cost of testing, estimated to range from $250 to $1,500. Additionally, Stretch Zone may require the supplier to provide evidence of adequate insurance, such as product liability insurance, to protect franchisees and Stretch Zone from potential claims. Stretch Zone will provide written notice of approval or disapproval within 10 days after testing and completion of all conditions. Stretch Zone retains the right to reinspect approved suppliers and revoke approval if standards are not maintained, with notification of approval or disapproval provided within 7 days of investigation and inspection.