In the context of the Regional Advertising Cooperative Agreement, what does 'DMA Cooperative' refer to for Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Regional Advertising Cooperative Agreement (this "Agreement") is signed on among Stretch Zone Franchising, LLC, a Florida limited liability |
|---|
| company (the "Franchisor");, d/b/a Stretch Zone (the "Member"); |
| and DMA Stretch Zone Regional Advertising Cooperative, an |
| unincorporated association (the " DMA Cooperative"). |
| BACKGROUND |
| A. |
| The Franchisor and the Member are Franchisor and Franchisee respectively under a |
| Stretch Zone Franchise Agreement (the "Franchise Agreement") relating to a Franchised Business |
| within the Designated Marketing Area ("DMA"). |
| B. |
| Under Section 7.2 of the Franchise Agreement, the Franchisor has the right to |
| establish a Regional Advertising Cooperative in any DMA. |
| C. |
| This Agreement and Bylaws included in Exhibit A creates the DMA Cooperative for |
| the furtherance of each Member's sales and promotional efforts in connection with each Member's |
| operation of a Stretch Zone Franchise (collectively the "Franchises") and the Member's membership |
| in and participation with the DMA Cooperative. |
| The parties agree as follows: |
| TERMS |
| 1. |
| PURPOSE. |
| The purpose of the DMA Cooperative is the furtherance of each |
| Member's sales and promotional efforts in connection with the operation of their Stretch Zone |
| Franchises through the joint pooling of funds for the creation and placement of advertising and |
| promotional campaigns and plans in the DMA. The DMA Cooperative will open a bank account in |
| its name with Bank of America into which advertising contributions are deposited and from which the |
| expenses incurred are paid. The Franchisor will be granted access to the account for monitoring |
| purposes. |
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, a 'DMA Cooperative' refers to DMA Stretch Zone Regional Advertising Cooperative, which is an unincorporated association. This cooperative is created by Stretch Zone Franchising, LLC to further the sales and promotional efforts of each franchised and company-owned outlet located in a Designated Market Area (DMA). The members of the DMA Cooperative believe that a cooperative effort to coordinate advertising and promotional campaigns in the DMA will best serve the franchises.
The purpose of the DMA Cooperative is to pool funds for advertising and promotional campaigns within the DMA. This involves creating and placing advertising to promote Stretch Zone franchises. The DMA Cooperative will manage a bank account with Bank of America for depositing advertising contributions and paying expenses, with Stretch Zone Franchising, LLC having access for monitoring purposes.
Each member of the DMA Cooperative is entitled to one vote per franchise business they own on matters submitted to a vote. These matters include the allocation of funds for advertising, the nature and type of advertising, the use of funds and placement of advertising, increases in member contributions, amendments to the cooperative's bylaws, dissolution of the cooperative, and the election of officers. The officers then decide all other matters related to the operation of the DMA Cooperative and contracting for advertising production and placement.