Under what condition has the Franchisor approved the Lease for the Stretch Zone premises?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS AGREEMENT is signed on among Stretch Zone Franchising LLC (the "Franchisor");, a limited liability company (the "Landlord") and , LLC, a limited liability company (the |
|---|
| "Tenant/Franchisee"). |
| BACKGROUND |
| A. |
| The Tenant/Franchisee is a franchisee of the Franchisor under a Stretch Zone |
| Franchise Agreement between the Franchisor and the Tenant/Franchisee dated |
| (the "Franchise Agreement") for the operation of a Stretch Zone (the "Franchise Business"). |
| B. |
| The Landlord and the Tenant/Franchisee are parties to a Lease Agreement dated |
| (the |
| "Lease") |
| for |
| the |
| premises |
| located |
| at |
| (the |
| "Premises") |
| that |
| has |
| been |
| approved by the Franchisor on condition that all the parties sign this Agreement. |
| C. |
| In order to assure that a Franchise Business continues to operate at the Premises, |
| the Landlord grants certain rights to the Franchisor under the Lease to protect the Franchisor's |
| interest under the Franchise Agreement. |
| The parties agree as follows: |
| TERMS |
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 Stretch Zone's 2025 Franchise Disclosure Document, the franchisor's approval of the lease for the premises is conditional upon all parties signing an agreement. This agreement ensures that the Stretch Zone business continues to operate at the premises, granting the franchisor specific rights under the lease to protect their interests as defined in the Franchise Agreement.
This condition is put in place to protect Stretch Zone's interests and ensure the continuity of the franchise business at the specified location. By requiring all parties to sign the agreement, Stretch Zone establishes a legally binding framework that outlines the rights and responsibilities of the landlord, tenant/franchisee, and franchisor.
For a prospective Stretch Zone franchisee, this means that before finalizing a lease, the franchisor must also be a party to the lease agreement. This requirement aims to safeguard the franchisor's investment and brand integrity by ensuring the location remains a Stretch Zone business, even in situations where the franchisee might default or the franchise agreement is terminated.