Besides obligations imposed by the Bylaws, what responsibilities does the DMA Cooperative have regarding advertising placement for Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
relate directly to advertising and promotions, other use of funds may be agreed upon by consent of 67% of the Members of the DMA Cooperative present at a meeting to decide on an alternative use of funds, called and held in accordance with Article 3 of the Bylaws.
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- OBLIGATIONS OF DMA COOPERATIVE. The DMA Cooperative is responsible for the following in addition to any other obligations imposed by the Bylaws:
- (a) The placement of advertising in the DMA that meets the Franchisor' standards and specifications;
- (b) The submission of all proposed advertising and promotional plans and campaigns to the Franchisor for its prior approval as described in the Advertising Submission Agreement included as Exhibit B.
- (c) The signing and delivery of an Advertising Submission Agreement to the Franchisor with all proposed advertising and promotional plans and campaigns;
- (d) The filing of any and all periodic reports to the Franchisor which may be required pursuant to the Bylaws;
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, the DMA Cooperative has specific responsibilities regarding advertising placement, beyond those outlined in its Bylaws. The DMA Cooperative must place advertising within the Designated Market Area (DMA) that adheres to Stretch Zone's standards and specifications. This ensures that all advertising aligns with the brand's image and quality expectations.
In addition to placement, the DMA Cooperative is required to submit all proposed advertising and promotional plans and campaigns to Stretch Zone for prior approval. This process is formalized through an Advertising Submission Agreement. The DMA Cooperative must sign and deliver this agreement to Stretch Zone along with the proposed advertising materials. This step ensures that Stretch Zone has oversight and control over the advertising content and strategy used in each DMA.
Furthermore, the DMA Cooperative must comply with any requests from Stretch Zone to cease using advertising campaigns or plans that Stretch Zone deems inappropriate or inconsistent with its standards. This provision allows Stretch Zone to maintain brand consistency and protect its reputation. The DMA Cooperative is also obligated to notify Stretch Zone if any member fails to make two or more consecutive monthly contributions to the DMA Cooperative, which could impact the cooperative's ability to fund advertising efforts.