What are some examples of expenditures that funds collected by the Stretch Zone DMA Cooperative can be used for?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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- ALLOCATION OF PROCEEDS. The funds collected by the DMA Cooperative from its Members will be used for any of the following expenditures as approved by the Members in accordance with the Bylaws and signed by the DMA Cooperative and the Franchisor in the form attached as Exhibit B:
- (a) Television and radio media placement;
- (b) Agency expenses relating to the placement of the advertising;
- (c) Point-of-Purchase (P.O.P.) materials for the DMA Cooperative's promotions; and
- (d) Administrative, professional fees and miscellaneous expenses related to the placement of advertising.
Provided the expenditures relate directly to advertising and promotions, other use of funds may be agreed upon by consent of 67% of the Members of the DMA Cooperative present at a meeting to decide on an alternative use of funds, called and held in accordance with Article 3 of the Bylaws.
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, funds collected by the DMA Cooperative from its members can be used for specific expenditures, provided the members approve them according to the Bylaws and the DMA Cooperative and Stretch Zone both sign off on them. These expenditures relate directly to advertising and promotions.
Specifically, the funds may be allocated to television and radio media placement, which would allow the cooperative to purchase airtime and promote Stretch Zone services through these channels. Funds may also cover agency expenses related to the placement of advertising, which includes fees paid to advertising agencies for their services in planning, creating, and placing ads.
Additionally, the DMA Cooperative can use the funds for Point-of-Purchase (P.O.P.) materials for the DMA Cooperative's promotions, which are marketing materials placed in retail locations to attract customers. Finally, the funds can be used for administrative, professional fees, and miscellaneous expenses related to the placement of advertising, covering costs like legal or consulting services and other incidental expenses associated with advertising efforts. However, other uses of funds may be agreed upon by consent of 67% of the Members of the DMA Cooperative present at a meeting to decide on an alternative use of funds.