What is the definition of 'Member' in the context of the Stretch Zone Regional Advertising Cooperative Agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
t COOPERATIVE: DMA Stretch Zone Regional Cooperative Its: MEMBER:
EXHIBIT A
BYLAWS FOR ___________________________ DMA COOPERATIVE (an Unincorporated Association)
ARTICLE 1 Statement of Purpose
| Stretch Zone Franchising, LLC, a Florida limited liability company; and franchisor of the | |
|---|---|
| Stretch Zone Franchises creates the DMA Cooperative as an | |
| unincorporated association organized for the furtherance of each Franchised Outlet and | |
| Company-Owned Outlet located in the DMA (the "Members") | |
| for sales and promotional efforts in connection with each Member's operation of a Stretch Zone | |
| Franchise Business (collectively the "Franchises") through the joint pooling of funds for a common | |
| advertising effort. |
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, in the context of the DMA (Designated Marketing Area) Cooperative, 'Members' are defined as franchised outlets and company-owned outlets located within the DMA. These members participate in the cooperative for sales and promotional efforts related to their Stretch Zone Franchise Business. The cooperative functions through the joint pooling of funds to facilitate common advertising efforts.
To qualify as a member, franchisees must be in good standing with Stretch Zone and must sign the Regional Advertising Cooperative Agreement, as required by the Franchise Agreement. Each member is entitled to one vote per franchise business owned on matters submitted to a vote, such as the allocation of funds for advertising, the nature and type of advertising, and any changes to member contributions.
Membership in the DMA Cooperative terminates when a member transfers, sells, or assigns their franchise, if their Franchise Agreement is terminated or expires, or if the member otherwise ceases to be a Stretch Zone franchisee in good standing with the franchisor. This ensures that only active and compliant Stretch Zone franchisees participate in and benefit from the regional advertising efforts.