To whom does the Stretch Zone DMA Cooperative Treasurer render an account of transactions?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The Treasurer will further: (a) have charge and custody of, and be responsible for, all funds of the DMA Cooperative from any source whatsoever, and deposit all such moneys in the name of the DMA Cooperative at Bank of America, N.A.; (b) disburse the funds of the DMA Cooperative, as may be ordered by the Members, taking proper vouchers for the disbursements, and render to the President and Members an account of all his or her transactions as Treasurer and of the financial condition of the DMA Cooperative; (c) collect all Members' contributions and provide an annual accounting of the DMA Cooperative's use of the contributions to the Franchisor and the Members; (d) notify the Franchisor if any Member fails to make 2 or more consecutive monthly contributions to the DMA Cooperative as required by the terms of the DMA Membership Agreement; and (e) in general perform all of the duties incident to the office of Treasurer and such other duties as from time to time may be assigned to him by the President or by the Members.
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, the DMA Cooperative Treasurer is required to provide an account of all transactions and the financial condition of the DMA Cooperative to both the President and the Members. This ensures transparency and accountability in how the cooperative's funds are managed.
This requirement means that prospective Stretch Zone franchisees who participate in a DMA Cooperative can expect to receive regular financial reports from the Treasurer. These reports will detail all income and expenses of the cooperative, giving franchisees insight into how their contributions are being used for advertising and promotional efforts. Franchisees have the right to review these financial records and ask questions about any transactions.
Furthermore, the DMA Cooperative's bylaws specify that a financial report from the Treasurer is a standard item on the agenda for all meetings of the Members. This reinforces the importance of financial transparency and provides a regular opportunity for franchisees to discuss the cooperative's finances. The order of business for meetings includes the reading of minutes, reports of officers, and financial reports of the treasurer, ensuring financial matters are routinely addressed.
This level of financial oversight is typical for franchise cooperatives, as it protects the interests of all members and ensures that funds are used effectively for their intended purpose. For a prospective Stretch Zone franchisee, this provides assurance that the DMA Cooperative's finances are managed responsibly and that they will have access to information about how their contributions are being spent.