Who must approve the rules and procedures adopted by the Regional Advertising Cooperative for Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
to the Business System. You will have 5 days after you receive of our written notice to discontinue using the materials or advertising, unless otherwise agreed in writing.
- (c) Social Media. You cannot engage in social media concerning the Franchise Business without our prior written consent. You must purchase social media management software from our Designated Supplier. All content on your social media regarding Stretch Zone belongs to us.
Section 7.2 REGIONAL ADVERTISING COOPERATIVE
You agree that we have the right to establish a Regional Advertising Cooperative in any DMA. Upon our request, you will immediately become a member of the Regional Advertising Cooperative for the DMA that includes your Limited Protected Territory. Your Franchise Business does not have to be a member of more than 1 Regional Advertising Cooperative. All Company-Owned Units within your DMA must also become members of the Regional Advertising Cooperative. There will be governing documents available for your review.
- (a) Purposes of Regional Advertising Cooperative. We will organize the Regional Advertising Cooperative for the exclusive purposes of administering advertising programs and developing standardized promotional materials for use by its members. The Regional Advertising Cooperative may adopt its own rules and procedures, but we must approve the rules or procedures. The rules and procedures must not restrict or expand your rights or obligations under this Agreement.
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, Stretch Zone must approve the rules and procedures that the Regional Advertising Cooperative adopts. The Regional Advertising Cooperative is designed to administer advertising programs and create standardized promotional materials for its members.
These rules and procedures established by the Cooperative cannot restrict or expand a franchisee's rights or obligations as outlined in the Franchise Agreement. Any lawful action taken by the Regional Advertising Cooperative at a meeting attended by at least 67% of the members, including assessments for local advertising, is binding if approved by 67% of the members present, subject to Stretch Zone's approval. Each franchised unit and company-owned unit has one vote.
Stretch Zone also retains the right to form, change, dissolve, or merge any Cooperative. In the event of an impasse among the members of the Regional Advertising Cooperative that affects its establishment or functioning, Stretch Zone will resolve the issue, and that resolution will be final and binding on all members.