Are Stretch Zone Company-Owned Units required to contribute to the Media Fund?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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, Company-Owned Units are indeed required to contribute to the Media Fund. The FDD specifies that these units contribute on the same basis as franchised units. This means that both franchised and company-owned Stretch Zone locations are expected to allocate funds towards the Media Fund, which Stretch Zone uses for advertising, marketing, and promotional activities.
The Media Fund is used to cover the costs of creating advertising materials and conducting regional or national advertising campaigns. Stretch Zone retains full discretion over how the Media Fund is spent, including the creative concepts, media placement, and market allocation. These expenditures can include video, audio, and written advertising materials, sponsorships, direct mail, social media programs, and public relations efforts.
This policy ensures that both franchised and company-owned locations contribute to a collective advertising pool, which Stretch Zone believes benefits the entire Business System. In the event that Stretch Zone terminates the Media Fund, any remaining funds will be distributed to both franchised and company-owned units on a pro-rata basis, based on their contributions. This arrangement aims to provide a unified marketing approach and shared financial responsibility for advertising efforts across all Stretch Zone locations.