How are Stretch Zone DMA Cooperative payments made?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Contributions. The Member will contribute to the DMA Cooperative on a monthly basis, an amount not to exceed 1% of its Gross Revenues. The initial amount of monthly Contributions will be determined at the organizational meeting of the Members. All payments will be made through the ClubReady Electronic Payment system described in Section 3.3 of the Franchise Agreement. The amount of monthly Contributions to the DMA Cooperative will be reviewed and revised accordingly by majority vote of the Members at any regular meeting of the Members as provided in Article 4, Section 1 of the Bylaws.
- (d) Delinquent Payments. All late payments accrue interest at the rate of 1.5% per month beginning the date payment was due until fully paid or at the highest rate permitted by applicable state law, whichever is less, calculated on a daily basis.
- (e) Failure to Make Payments. If the Member fails to make 2 or more consecutive monthly contributions to the DMA Cooperative, the Franchisor may elect to terminate this Agreement and the Franchise Agreement for the Franchise Business if payment is not made within 30 days of receipt of the Franchisor's written demand for payment. If the delinquent payments are not made within the 30-day cure period, the Franchisor may immediately terminate this Agreement and the Franchise Agreement for the Franchise Business upon notice to the Member without providing any additional time to cure.
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, franchisees contribute to the DMA Cooperative on a monthly basis. The contribution amount will not exceed 1% of the franchisee's Gross Revenues. The initial monthly contribution amount is determined at the organizational meeting of the members. All payments are made through the ClubReady Electronic Payment system, as described in Section 3.3 of the Franchise Agreement.
The amount of monthly contributions to the DMA Cooperative is reviewed and revised by a majority vote of the members at any regular meeting, as provided in Article 4, Section 1 of the Bylaws. Late payments accrue interest at a rate of 1.5% per month, calculated daily, from the date the payment was due until it is fully paid. However, if applicable state law dictates a lower rate, the interest charged will align with the highest rate permitted by that state's law.
If a Stretch Zone franchisee fails to make two or more consecutive monthly contributions to the DMA Cooperative, the franchisor has the right to terminate both the Regional Advertising Cooperative Agreement and the Franchise Agreement for the Franchise Business. This termination can occur if the payment is not made within 30 days of receiving the franchisor's written demand for payment. If the franchisee does not make the delinquent payments within this 30-day cure period, Stretch Zone may immediately terminate both agreements upon notice to the member, without providing any additional time to rectify the situation.