factual

Who has discretion over expenditures from the Stretch Zone Media Fund?

Stretch_Zone Franchise · 2025 FDD

Answer from 2025 FDD Document

ite. The content and information includes company information, user demographics and profiles, pictures and graphics, testimonials, advertisements, franchise information, product and/or service information and all other information that we may designate in writing. You will not create or maintain any website other than the website we provide.

  • (b) Domain Name. We prohibit you from registering any domain name using the Intellectual Property and from hosting a website to promote the Franchise Business or the products or services without our prior written consent. We retain all rights to the trade names and other Intellectual Property, and any associated Internet domains used to identify the Business System.

Section 7.4 MEDIA FUND

  • (a) Creation. We have created a special fund called the "Stretch Zone Media Fund" (the "Media Fund"), into which we will deposit the Advertising Contributions described in Subsection 3.1(e) for the benefit of all Franchised Units and Company-Owned Units who contribute to the Media Fund.
  • (b) Administration. We will administer the Media Fund. We use the funds in the Media Fund to pay for the costs of creating various advertising, marketing, and promotional materials that we deem beneficial to the Business System. We also use the funds in the Media Fund to pay the costs of conducting regional and/or national advertising and promotional activities (including the cost of producing advertising campaigns and marketing materials, conducting test marketing and marketing surveys, and public relations activities) that we deem beneficial to the Business System. We can charge the Media Fund for our costs for services we provide, in lieu of engaging third party agencies to provide these services. We will not use any of the funds to offer or sell Stretch Zone Franchises to prospective franchisees. We assume no other direct or indirect liability or obligation to you for the maintenance, direction or administration of the Media Fund, except as expressly provided in this ARTICLE 7.
  • (c) Expenditures. All expenditures are at our sole discretion. We may spend in any calendar year more or less than the total Advertising Contributions to the Media Fund in that year. We may loan to the Media Fund or borrow from other lenders for the Media Fund to cover deficits of the Media Fund or cause the Media Fund to invest any surplus for future use by the Media Fund. We will carry any monies not spent by the Media Fund in any particular year to fund production expenses in the next year.
  • (d) Contents and Concepts. We retain sole discretion over all advertising, marketing and public relations programs and activities financed by the Media Fund, including the creative

concepts, materials and endorsements used and the geographic market, media placement and allocation. You agree that the Media Fund may be used to pay the costs of preparing and producing associated materials and programs that we determine, including video, audio and written advertising materials employing advertising agencies; sponsorship of sporting, charitable or similar events, administering regional and multi-regional advertising programs including purchasing direct mail and other media advertising, social media programs, and employing advertising agencies to assist with marketing efforts; and supporting public relations, market research and other advertising, promotional and marketing activities.

  • (e) Advertising Contributions by Us.

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 Stretch Zone's 2025 Franchise Disclosure Document, Stretch Zone has sole discretion over all expenditures from the Media Fund. The funds are used to pay for advertising, marketing, and promotional materials that Stretch Zone deems beneficial to the Business System. Stretch Zone can also use the funds to cover the costs of regional and/or national advertising and promotional activities, including producing advertising campaigns, conducting test marketing and marketing surveys, and public relations activities. Stretch Zone can charge the Media Fund for its services instead of hiring third-party agencies.

Stretch Zone may spend more or less than the total Advertising Contributions to the Media Fund in any calendar year. They can also loan to or borrow from other lenders for the Media Fund to cover deficits or invest any surplus for future use. Any unspent monies will be carried over to fund production expenses in the next year.

Stretch Zone also retains sole discretion over all advertising, marketing, and public relations programs and activities financed by the Media Fund, including the creative concepts, materials, endorsements, geographic market, media placement, and allocation. The Media Fund may be used to pay for preparing and producing associated materials and programs, such as video, audio, and written advertising materials, sponsoring events, administering regional and multi-regional advertising programs, social media programs, and supporting public relations, market research, and other advertising, promotional, and marketing activities.

Company-Owned Units are required to contribute to the Media Fund on the same basis as Franchised Units. Stretch Zone can terminate the collection and disbursement of Advertising Contributions and the Media Fund, and upon termination, the remaining funds will be disbursed to existing Franchised Units and Company-Owned Units on a pro-rata basis based on their relative amount of contributions. The advertising funded by the Media Fund is anticipated to be placed in regional and/or national markets via television, radio, periodicals, newspapers, and/or direct mail campaigns, and Stretch Zone does not have to spend any of a franchisee's contributions in their Limited Protected Territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.