Under what circumstances does the Washington Addendum apply to a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
WASHINGTON ADDENDUM TO FRANCHISE AGREEMENT, AREA DEVELOPMENT AGREEMENT AND RELATED AGREEMENTS
The provisions of this Addendum form an integral part of, are incorporated into, and modify the Franchise Disclosure Document, the franchise agreement, and all related agreements regardless of anything to the contrary contained therein. This Addendum applies if: (a) the offer to sell a franchise is accepted in Washington; (b) the purchaser of the franchise is a resident of Washington; and/or (c) the franchised business that is the subject of the sale is to be located or operated, wholly or partly, in Washington.
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 FDD, the Washington Addendum is incorporated into the Franchise Disclosure Document, the franchise agreement, and all related agreements. This addendum modifies these documents, regardless of any conflicting information contained within them.
The Washington Addendum applies under the following conditions: if the offer to sell a Stretch Zone franchise is accepted in Washington, if the purchaser of the franchise is a resident of Washington, or if the franchised business will be located or operated, either wholly or partly, in Washington.
This means that if a prospective Stretch Zone franchisee lives in Washington, is opening a location in Washington, or accepts the franchise agreement in Washington, the Washington Addendum will be in effect. This addendum ensures compliance with the Washington Franchise Investment Protection Act and addresses potential conflicts of law, franchisee rights, and the location of arbitration, mediation, and litigation.