Under the Stretch Zone Development Schedule, what is required of the franchisee regarding the number of Franchise Businesses to open and the timeframe for opening them?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
"Development Schedule" means the number of Franchise Businesses to be developed and the period in which to open the number (#) Franchise Businesses, as stated in Section 1.3.
"Area Development Rights" mean the rights granted to you under ARTICLE 1 to develop and open number (#) Franchise Businesses in the Development Area under the terms of this Agreement.
"Development Area" means territory.
"Development Fee" means the fee described in Section 3.1.
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 specifics of the Development Schedule, including the number of Franchise Businesses to be developed and the timeframe for opening them, are outlined in Section 1.3 of the Stretch Zone Development Agreement. This schedule is a crucial part of the agreement, defining the franchisee's obligations for expansion within their designated Development Area. The "Development Area" is defined as a specific territory granted to the franchisee. The "Area Development Rights" granted to the franchisee under Article 1 allow them to develop and open a specified number of Franchise Businesses within the Development Area, according to the terms of the Development Agreement.
Prospective franchisees should carefully review Section 1.3 of the Development Agreement to understand the milestones and deadlines for opening new Stretch Zone locations. Failing to meet the Development Schedule could potentially result in a breach of the Development Agreement and loss of rights to develop further franchises in the designated area. The Development Fee is mentioned in Section 3.1, but the excerpt does not specify the amount.
It is important for potential Stretch Zone area developers to fully understand the implications of the Development Schedule before signing the agreement. They should discuss any concerns or questions with the franchisor and seek legal counsel to ensure they can meet the required development obligations. Understanding these obligations is key to a successful partnership with Stretch Zone and maximizing the potential of the Development Area.