What accounting is the Stretch Zone DMA Cooperative Treasurer required to provide?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The Treasurer will further: (a) have charge and custody of, and be responsible for, all funds of the DMA Cooperative from any source whatsoever, and deposit all such moneys in the name of the DMA Cooperative at Bank of America, N.A.; (b) disburse the funds of the DMA Cooperative, as may be ordered by the Members, taking proper vouchers for the disbursements, and render to the President and Members an account of all his or her transactions as Treasurer and of the financial condition of the DMA Cooperative; (c) collect all Members' contributions and provide an annual accounting of the DMA Cooperative's use of the contributions to the Franchisor and the Members; (d) notify the Franchisor if any Member fails to make 2 or more consecutive monthly contributions to the DMA Cooperative as required by the terms of the DMA Membership Agreement; and (e) in general perform all of the duties incident to the office of Treasurer and such other duties as from time to time may be assigned to him by the President or by the Members.
ARTICLE 6 Order of Business
Unless changed or suspended at any meeting by the vote of a majority of the Members, the order of business of all meetings of the Members shall be as follows:
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- Reading of Minutes of Last Meeting.
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- Report of Officers.
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- Financial Report of Treasurer.
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- Unfinished Business.
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- New or Miscellaneous Business.
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- Elections (when appropriate).
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the DMA Cooperative Treasurer has specific accounting responsibilities. The Treasurer must provide an account of all transactions as Treasurer and of the financial condition of the DMA Cooperative to the President and Members. Additionally, the Treasurer is responsible for providing an annual accounting of the DMA Cooperative's use of contributions to both Stretch Zone and the Members.
This means that as a Stretch Zone franchisee, you would receive regular reports on how the cooperative's funds are being managed and spent. This transparency helps ensure that the contributions are being used effectively for advertising and promotional efforts, as intended by the DMA Cooperative's purpose. The financial report of the Treasurer is a standard agenda item for all meetings of the Members.
Furthermore, the Treasurer is obligated to notify Stretch Zone if any member fails to make two or more consecutive monthly contributions to the DMA Cooperative. This ensures that all members are fulfilling their financial obligations to the cooperative, which is crucial for maintaining the financial health and stability of the advertising and promotional campaigns. The Treasurer is also responsible for collecting all member contributions and disbursing funds as ordered by the Members, while maintaining proper documentation for all transactions.
As a prospective franchisee, understanding these financial oversight mechanisms within the DMA Cooperative is important. It provides assurance that the cooperative's funds are managed responsibly and that all members are held accountable for their contributions, which ultimately benefits the collective advertising efforts and the success of individual Stretch Zone franchises within the designated marketing area.