How are the advertising contributions to the Media Fund for a Stretch Zone franchise remitted?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement | Franchise | ||
|---|---|---|---|---|
| Disclosure Document ITEM | ||||
| a. Site selection and acquisition/lease | Section 4.1 | ITEMS 6, 7, 8 and 11 | ||
| b. Pre-opening purchases/leases | Sections 4.1, 4.2, 4.3, 4.4,4.5, 4.7, 4.8, 4.9, 4.11, and 4.12 | ITEMS 5, 7, 8 and 11 | ||
| c. Site development and other pre- | Sections 4.1 and 4.2 | ITEMS 7, 8 and 11 | ||
| opening requirements | ||||
| d. Initial and ongoing training | Sections 2.9, 2.11 and 2.12(f) | ITEMS 6, 7, 8 and 11 | ||
| e. Opening | Section 4.10 | ITEMS 7, 8 and 11 | ||
| f. Fees | Sections 1.5(d), 2.9, 2.12(f) 3.1, 3.4, 3.6, 4.6(d), 4.7(d), 4.10(a), 4.22, 6.1, 8.3(b), 9.7, 10.2(b)(vi), 10.2(f)(vii), 12.8, 16.2(a)(iv) and 17.6 | ITEMS 5, 6 and 7 | 1This fee is payable to us. |
2You will open a separate operating account with a bank for the Franchise Business. You will pay all Royalty Fees, Technology Fees, and other invoices due us and our Affiliates, and make Media Fund contributions, from remittances from your members that have been deposited into your operating account by ClubReady processing payments due us (the "Payment System"). You will cooperate with us to implement the Payment System within 15 days before the Opening Date. You agree to cooperate with us in maintaining the efficient operation of the Payment System, including depositing all Gross Revenues you receive into your operating account within 1 Business Day of receipt.
Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, franchisees will make Media Fund contributions from remittances from their members that have been deposited into their operating account by ClubReady processing payments. Franchisees are required to open a separate operating account with a bank for the Franchise Business. All Royalty Fees, Technology Fees, other invoices due to Stretch Zone and its Affiliates, and Media Fund contributions will be paid from this account.
Stretch Zone requires franchisees to cooperate with them to implement the Payment System within 15 days before the Opening Date. Franchisees must also cooperate in maintaining the efficient operation of the Payment System, including depositing all Gross Revenues received into their operating account within 1 Business Day of receipt.
While franchisees cannot initiate payments through the ClubReady Electronic Payment System, Stretch Zone is able to initiate payments through the ClubReady Electronic Payment System for invoices that are due to them. Franchisees must also make an initial Advertising Contribution to the Media Fund when their location opens, which will be deducted from their ClubReady Remittances.