What warranties is Stretch Zone entitled to when purchasing assets from a franchisee?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Assets" mean all equipment, vehicles, furnishings, fixtures, signs, inventory (non-perishable products, materials and supplies), leasehold improvements and the lease for the Premises"
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)
I am unable to provide information on what warranties Stretch Zone is entitled to when purchasing assets from a franchisee, according to the 2025 Franchise Disclosure Document. While the document defines "Assets" as all equipment, vehicles, furnishings, fixtures, signs, inventory (non-perishable products, materials, and supplies), leasehold improvements, and the lease for the Premises, it does not specify any warranties that Stretch Zone receives when purchasing these assets from a franchisee. A prospective franchisee should inquire directly with Stretch Zone about the terms and conditions under which the company purchases assets from its franchisees, including any warranties that apply to such transactions.