Who administers the Media Fund for Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Administration. We will administer the Media Fund. We use the funds in the Media Fund to pay for the costs of creating various advertising, marketing, and promotional materials that we consider beneficial to the Business System. We also use the funds in the Media Fund to pay the costs of conducting regional and/or national advertising and promotional activities (including the cost of producing advertising campaigns and marketing materials, conducting test marketing and marketing surveys, and public relations activities) that we consider beneficial to the Business System. We can charge the Media Fund for our costs for services we provide, in lieu of engaging third party agencies to provide these services. We will not use any of the funds to offer or sell Stretch Zone Franchises to prospective franchisees.
Expenditures. All expenditures are at our sole discretion. We may spend in any calendar year more or less than the total Advertising Contributions to the Media Fund in that year. We may loan to the Media Fund or borrow from other lenders for the Media Fund to cover deficits of the Media Fund or cause the Media Fund to invest any surplus for future use by the Media Fund. We will carry any monies not spent by the Media Fund in any particular year to fund production expenses in the next year.
Contents and Concepts. We retain sole discretion over all advertising, marketing and public relations programs and activities financed by the Media Fund, including the creative concepts, materials and endorsements used and the geographic market, media placement and allocation. You agree that the Media Fund may be used to pay the costs of preparing and producing associated materials and programs that we determine, including video, audio and written advertising materials employing advertising agencies; sponsorship of sporting, charitable or similar events, administering regional and multi-regional advertising programs including purchasing direct mail and other media advertising, social media programs, and employing advertising agencies to assist with marketing efforts; and supporting public relations, market research and other advertising, promotional and marketing activities.
Advertising Contributions by Us. Company-Owned Units are required to contribute to the Media Fund on the same basis that Franchised Units are required to contribute.
Termination of Expenditures. We maintain the right to terminate the collection and disbursement of the Advertising Contributions and the Media Fund. Upon termination, we will disburse the remaining funds to existing Franchised Units and Company-Owned Units on a pro-rata basis based on their relative amount of contributions.
Source: Item 11 — ITEM -11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–44)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the Media Fund is administered by Stretch Zone itself. Stretch Zone uses the funds to cover the costs of creating advertising, marketing, and promotional materials that it deems beneficial to the Business System. They also use the funds to pay for regional and national advertising and promotional activities, including producing advertising campaigns, conducting test marketing and surveys, and public relations activities.
Stretch Zone can charge the Media Fund for their services instead of hiring third-party agencies. All expenditures from the Media Fund are at Stretch Zone's sole discretion, and they can spend more or less than the total contributions in any calendar year. Stretch Zone can also loan to or borrow from the Media Fund and invest any surplus for future use. Any unspent funds are carried over to the next year to fund production expenses.
Stretch Zone retains control over all advertising, marketing, and public relations programs financed by the Media Fund, including creative concepts, materials, endorsements, geographic market, media placement, and allocation. The Media Fund can be used to pay for associated materials and programs, such as video, audio, and written advertising materials, sponsorships, regional and multi-regional advertising programs, social media programs, and public relations and market research activities. Company-owned units are required to contribute to the Media Fund on the same basis as franchised units. Stretch Zone has the right to terminate the collection and disbursement of Advertising Contributions and the Media Fund, and upon termination, the remaining funds will be disbursed to existing franchised and company-owned units on a pro-rata basis based on their relative amount of contributions.