What is the decision-making process within the DMA Stretch Zone Regional Advertising Cooperative?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchised Outlet Members must be Franchisees under a Franchise Agreement with the Franchisor and currently not in default under their respective Franchise Agreement (the "Franchise Agreement") and be a party to a DMA Membership Agreement among the Franchisor, the DMA Cooperative and the Member.
- Section 2. Voting Rights. Each Member is entitled to 1 vote per Franchise Business owned on each matter submitted to a vote of the Members.
- Section 3. Matters on Which Members Are Entitled to Vote. Each Member is entitled to vote on all matters affecting: (a) the allocation of funds for advertising in the DMA; (2) the nature and type of advertising to be placed by the DMA Cooperative; (3) all matters affecting the use of funds and the placement of advertising; (4) determination of increases in Members' contributions; (5) amendment of these Bylaws; (6) the dissolution of the DMA Cooperative; and (7) the election of the Officers. The Officers will decide all other matters with respect to the operation of the DMA Cooperative and the contracting for the production and placement of advertising.
Section 4. Termination of Membership.
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, decision-making within the DMA Stretch Zone Regional Advertising Cooperative involves a voting process where each member gets one vote per franchise business they own. These votes are cast on matters affecting the allocation of funds for advertising, the nature and type of advertising, the use of funds and placement of advertising, changes to member contributions, amendments to the cooperative's bylaws, dissolution of the cooperative, and the election of officers. All other operational decisions, such as contracting for advertising production and placement, are managed by the elected officers.
For a prospective Stretch Zone franchisee, this means they have a direct say in how advertising funds are spent and what types of advertising campaigns are pursued within their designated marketing area. This influence is proportional to the number of franchise businesses they own. The cooperative structure allows for collective decision-making, ensuring that advertising efforts are aligned with the interests of the majority of franchisees in the DMA.
However, franchisees should be aware that while they vote on significant matters, the officers of the DMA Cooperative handle the day-to-day operational decisions. Additionally, the Franchisor retains some control, as all advertising and promotional plans must meet Stretch Zone's standards and require prior approval. Franchisees need to actively participate in meetings and discussions to effectively influence the cooperative's decisions and ensure their voices are heard.
Furthermore, a 67% consent of the members present at a meeting is required to decide on an alternative use of funds, provided the expenditures relate directly to advertising and promotions. This indicates that while the standard voting process involves a simple majority, significant changes to fund allocation require a supermajority, ensuring broader consensus among the members.