Under what circumstances must a new Regional Manager be designated for a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Change in Regional Manager. If the Regional Manager fails to satisfy his or her obligations provided in Subsection 4.6(c) due to death, disability, termination of employment or for any other reason, you, your Designated Representative, or a Franchise Owner will satisfy these obligations until you designate a new Regional Manager acceptable to us who has successfully completed our then-current training requirements (for which you must pay us the applicable training fees). You are solely responsible for the expenses associated with such training, including the thenprevailing standard training fees we charge.
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, a new Regional Manager must be designated under specific circumstances. If the current Regional Manager is unable to fulfill their obligations, whether due to death, disability, termination of employment, or any other reason, the franchisee, their Designated Representative, or another Franchise Owner must step in to cover those responsibilities. This interim arrangement continues until a new Regional Manager is appointed who meets Stretch Zone's standards and has successfully completed the required training programs.
It's important to note that the franchisee is responsible for covering all expenses associated with the new Regional Manager's training, including the standard training fees that Stretch Zone charges. This ensures that the new manager is properly equipped to uphold the standards of the Stretch Zone Business System.
This requirement ensures continuity in the management and operation of the Stretch Zone franchise, maintaining service quality and adherence to brand standards even during unforeseen circumstances. The need for additional training and associated costs should be factored into the franchisee's operational budget and contingency planning.