Under what circumstances regarding default events related to the Franchise Agreement or other documents between Stretch Zone and the franchisee/debtor would a warranty be triggered?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Events of Default.
The Franchisee/Debtor is in default under this Agreement upon the happening of any of the following events ("Events of Default"):
- (a) The occurrence of an Event of Default under the Franchise Agreement or any other document between the Franchisor/Secured Party and the Franchisee/Debtor; or
- (b) Loss, theft, substantial change or destruction to a substantial portion of the Collateral unless replaced immediately or covered by insurance.
Upon the happening of any Event of Default or whenever the Franchisor/Secured Party deems itself insecure for any reason, the Obligations become immediately due and payable. The Franchisee/Debtor expressly waives any presentment, demand, protest or other notice of any kind.
7. Franchisor/Secured Party's Remedies and Additional Rights After Default.
Upon the occurrence of an Event of Default, the Franchisor/Secured Party has the rights and remedies of a Franchisor/Secured Party under the Florida Uniform Commercial Code or any
other applicable law. The Franchisor/Secured Party may exercise the following rights and remedies:
(a) The Franchisor/Secured Party may peaceably, or by its own means or with judicial assistance by injunction or otherwise, enter the Franchisee/Debtor's premises and take possession of the Collateral, or render it unusable, or dispose of the Collateral on the Franchisee/Debtor's premises, and the Franchisee/Debtor will not resist or interfere with this action.
(b) The Franchisor/Secured Party may notify all account debtor's and other contracting parties of the Franchisor's/Secured Party's security interest in the accounts and demand payment directly to the Franchisor/Secured Party instead of paying the Franchisee/Debtor directly.
(c) The Franchisor/Secured Party may, with judicial assistance by injunction or otherwise, require the Franchisee/Debtor, at the Franchisee/Debtor's expense, to assemble the Collateral and make it available to the Franchisor/Secured Party at any place designated by the Franchisor/Secured Party.
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, a franchisee/debtor is considered in default if an event of default occurs under the Franchise Agreement or any other document between Stretch Zone (the franchisor/secured party) and the franchisee/debtor. Additionally, default can occur if there is loss, theft, substantial change, or destruction to a substantial portion of the collateral, unless it is immediately replaced or covered by insurance.
Upon the occurrence of any of these events of default, or if Stretch Zone deems itself insecure for any reason, the obligations of the franchisee/debtor become immediately due and payable. The franchisee/debtor waives any requirement for presentment, demand, protest, or other notice of any kind from Stretch Zone.
Following an event of default, Stretch Zone has the rights and remedies of a franchisor/secured party under the Florida Uniform Commercial Code or any other applicable law. These remedies include the right to enter the franchisee/debtor's premises and take possession of the collateral, render it unusable, or dispose of it. Stretch Zone can also notify the franchisee/debtor's accounts and demand payment directly. Additionally, Stretch Zone can require the franchisee/debtor to assemble the collateral and make it available at a designated location, at the franchisee/debtor's expense.