Under what circumstances might Stretch Zone modify or discontinue the use of its Principal Trademark or other Intellectual Property?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 5.6 OUR RIGHT TO MODIFY THE INTELLECTUAL PROPERTY
If we deem it advisable to modify or discontinue the use the Principal Trademark or any of the other Intellectual Property and/or use an additional or substitute Principal Trademark including: (i) due to the rejection of any pending application for registration: (ii) revocation of any existing registration of any of the Intellectual Property (ii) the rights of senior users; (iv) our negligence; (v) a radical change in direction of the Business System we unilaterally cause or mandate; or (vi) the modification or discontinuation of the use of any of the Intellectual Property is due to a continuing need to modernize the Business System, you are liable for all expenses in substituting the modified or new Intellectual Property in your Franchise Business. You are obligated to do so within 30 days of our request.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, Stretch Zone has the right to modify or discontinue the use of its Principal Trademark or other Intellectual Property under certain circumstances. These circumstances include: the rejection of any pending application for registration, revocation of any existing registration of any of the Intellectual Property, the rights of senior users, Stretch Zone's negligence, a radical change in direction of the Business System they unilaterally cause or mandate, or the modification or discontinuation of the use of any of the Intellectual Property is due to a continuing need to modernize the Business System.
If Stretch Zone deems it advisable to modify or discontinue the use of the Principal Trademark or any of the other Intellectual Property, the franchisee is liable for all expenses in substituting the modified or new Intellectual Property in their Franchise Business. The franchisee is obligated to make these changes within 30 days of Stretch Zone's request.
This clause highlights the importance of Stretch Zone maintaining its trademarks and intellectual property. It also demonstrates that Stretch Zone retains control over its brand and business system, and can make changes it deems necessary. The franchisee bears the financial responsibility for implementing these changes, which could potentially involve significant costs for new signage, marketing materials, and other branded items. Prospective franchisees should consider this potential expense when evaluating the Stretch Zone franchise opportunity.