Under what circumstances does Stretch Zone reserve the right to vary standards for a franchisee?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
2, 10.3, and 10.4, except for a transfer in accordance with Section 10.2(b), you will pay us a fee in the amount of $10,000 (the "Transfer Fee").
- (h) Renewal Fee. Shortly before the expiration of the Initial Term, if you decide to obtain a Renewal Franchise Agreement in accordance with Subsection 16.2(a), you must pay us a Renewal Fee equal to 50% of the then-current Initial Franchise Fee.
- (i) Our Attorneys' Fees. If after the Franchise Agreement is signed by the parties: (i) you request our written consent to any action of yours and we consult our attorney; or (ii) we have our attorney prepare a letter, a Notice of Default or a Notice of Termination to you, then you agree to reimburse us for our attorneys' fees and costs under these circumstances.
- (j) Fines for Non-Compliance. If we find you to be in violation of certain terms of this Agreement constituting a material default by you that would entitle us to terminate the Franchise Agreement, we will send you a letter setting forth the nature of the non-complying act and what steps you must take to cure the violation. We will also impose a fine of $250, provided that, if the default involves the offer or sale of unauthorized or prohibited products, the fine is $500 per day until you
cease such offer or sale. You must immediately cure the violation and pay the fine within 10 days of receipt of our notice of non-compliance. If you fail to cure and pay the fine in a timely manner, we reserve the right to exercise our rights under ARTICLE 11.
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)
Based on the 2025 Stretch Zone Franchise Disclosure Document, Stretch Zone can impose fines for non-compliance with the franchise agreement. If a franchisee violates the terms of the agreement, constituting a material default that would allow Stretch Zone to terminate the agreement, Stretch Zone will send a letter detailing the violation and the steps required to correct it.
In addition to the letter, Stretch Zone will impose a fine. The standard fine is $250, but it increases to $500 per day if the default involves the offer or sale of unauthorized or prohibited products, continuing until the franchisee stops the unauthorized activity. The franchisee must correct the violation and pay the fine within 10 days of receiving notice. Failure to do so gives Stretch Zone the right to exercise its rights under ARTICLE 11 of the agreement.
Specific examples of non-compliance that can lead to fines include selling unauthorized products at the premises, misusing the Stretch Zone name and logo, employing uncertified individuals to provide stretching services (with a $250 daily fine per uncertified person), employees not adhering to the dress code (with a $200 fine), or receiving an inspection report that reveals a material violation of Stretch Zone's operating standards. The manuals contain further information on other types of violations that are subject to fines. If there is a violation that has not been listed, the fine will be $250.