In Washington, what is the definition of a 'franchise broker' in relation to a Stretch Zone franchise?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Advisory Regarding Franchise Brokers. Under the Washington Franchise Investment Protection Act, a "franchise broker" is defined as a person that engages in the business of the offer or sale of franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. If a franchisee is working with a franchise broker, franchisees are advised to carefully evaluate any information provided by the franchise broker about a franchise.
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 Franchise Disclosure Document, in Washington, a 'franchise broker' is defined under the Washington Franchise Investment Protection Act as someone who engages in the business of offering or selling franchises. The franchise broker represents Stretch Zone and receives a fee for referring potential franchisees or for selling the franchise directly.
This definition is important for prospective Stretch Zone franchisees in Washington because it highlights the role and potential influence of franchise brokers. Since these brokers are paid by the franchisor, their interests are aligned with Stretch Zone, which may influence the information they provide to potential franchisees. Therefore, the FDD advises franchisees to carefully evaluate any information received from a franchise broker.
This disclosure serves as a reminder to conduct thorough due diligence and not rely solely on the representations of a franchise broker. Prospective Stretch Zone franchisees should independently verify information, consult with legal and financial advisors, and carefully review the FDD and franchise agreement before making any decisions. This ensures they have a comprehensive understanding of the franchise opportunity and its associated risks and benefits.