How are Company-Owned Units of Stretch Zone required to contribute to the Media Fund?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) 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.
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 Stretch Zone's 2025 Franchise Disclosure Document, Company-Owned Units are required to contribute to the Media Fund on the same basis as Franchised Units. This means that the contribution requirements and calculations that apply to franchisees also apply to Stretch Zone's own corporate-owned locations.
The Media Fund is used to pay for advertising, marketing, and promotional materials and activities that Stretch Zone deems beneficial to the Business System. These activities can include creating advertising campaigns, conducting test marketing and surveys, and engaging in public relations efforts. Stretch Zone has sole discretion over how the Media Fund is spent, including the creative concepts, materials, and media placement.
Franchisees should note that Stretch Zone retains the right to terminate the collection and disbursement of Advertising Contributions and the Media Fund. If this happens, the remaining funds will be distributed to existing Franchised Units and Company-Owned Units on a pro-rata basis, based on their relative contributions. The advertising funded by the Media Fund is anticipated to be placed in regional and/or national markets via various media channels, and Stretch Zone is not obligated to spend any of a franchisee's contributions within their specific Limited Protected Territory.