By what day of each month must a Stretch Zone franchisee submit their contribution to the Regional Advertising Cooperative?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Members' Contributions to Cooperative. The Regional Advertising Cooperative has the right to require each of its members to contribute to the Regional Advertising Cooperative the same amount, but not to exceed 2% of that member's monthly Gross Revenues. We credit this amount against your obligation for Local Advertising. Each member will submit to the Regional Advertising Cooperative, no later than the 10th day of each month for the preceding calendar month, his, her or its contribution together with all other statements or reports the Regional Advertising Cooperative or we require.
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, a franchisee who is a member of the Regional Advertising Cooperative must submit their monthly contribution by the 10th day of each month. This contribution covers the preceding calendar month's activity. The amount each member contributes must be the same, but it cannot exceed 2% of the member's monthly Gross Revenues.
This contribution is credited against the franchisee's obligation for Local Advertising, which means that the money paid into the Regional Advertising Cooperative counts towards the franchisee's required local advertising spend. Franchisees must also submit any other statements or reports that the Regional Advertising Cooperative or Stretch Zone requires along with their contribution.
It is important for prospective Stretch Zone franchisees to understand this obligation, as it affects their monthly financial planning and reporting. Failing to submit the contribution and required reports on time could potentially lead to penalties or other issues with the Regional Advertising Cooperative or Stretch Zone itself. Franchisees should ensure they have systems in place to accurately track their gross revenues and submit the required contributions and reports by the due date each month.