Who determines the bond amount and surety for the Stretch Zone DMA Cooperative Treasurer?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
If required by the Members, the Treasurer will obtain a bond for the faithful discharge of his or her duties in such sum, and with such surety or sureties, as the Members determine.
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, the members of the DMA Cooperative determine the bond amount and surety for the Treasurer, if a bond is required. The Treasurer is responsible for managing the funds of the DMA Cooperative, collecting member contributions, and providing financial reports.
This means that Stretch Zone franchisees within a DMA have the collective authority to decide whether the Treasurer needs to be bonded, and if so, for what amount and with what surety. This provides a level of control and oversight by the franchisees over the financial management of their cooperative advertising funds.
Requiring a bond for the Treasurer is not mandatory, as it is contingent upon the decision of the members. If the members decide a bond is necessary, it serves as a form of insurance, protecting the cooperative's funds against potential mishandling or malfeasance by the Treasurer. The surety ensures that there is a guarantee of financial compensation should the Treasurer fail to fulfill their duties responsibly.
Prospective Stretch Zone franchisees should consider the implications of participating in a DMA Cooperative, including their role in determining financial safeguards and the importance of actively engaging in the cooperative's decision-making processes to protect their investment in regional advertising efforts.