What are the exclusive purposes of the Regional Advertising Cooperative for Stretch Zone franchisees?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Purposes of Regional Advertising Cooperative. We will organize the Regional Advertising Cooperative for the exclusive purposes of administering advertising programs and developing standardized promotional materials for use by its members. The Regional Advertising Cooperative may adopt its own rules and procedures, but we must approve the rules or procedures. The rules and procedures must not restrict or expand your rights or obligations under this Agreement. Except as otherwise contained in the Franchise Agreement, and subject to our approval, any lawful action of the Regional Advertising Cooperative at a meeting attended by 67% of the members, including assessments for Local Advertising, binds you if approved by 67% of the members present. Each Franchised Unit and Company-Owned Unit has 1 vote.
- (b) Our Approval of Advertising. We must approve in writing all advertising or promotional plans or materials the Regional Advertising Cooperative proposes to use or furnish to its members. The Cooperative must submit to us all plans and materials in accordance with the procedure stated in Subsection 7.1(b).
- (f) Changes, Dissolution or Merger of Cooperatives. We have the right to form, change, dissolve or merge any Cooperative.
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 the 2025 Stretch Zone Franchise Disclosure Document, the Regional Advertising Cooperative is established to administer advertising programs and develop standardized promotional materials for its members. This cooperative may create its own operational rules, but Stretch Zone must approve them, and these rules cannot alter the franchisee's rights or obligations under the Franchise Agreement.
With Stretch Zone's approval, any lawful action taken by the Regional Advertising Cooperative during a meeting attended by at least 67% of its members, including decisions about Local Advertising assessments, becomes binding if approved by 67% of the members present. Each Franchised Unit and Company-Owned Unit has one vote in these matters.
Stretch Zone retains control by requiring that all advertising or promotional plans and materials proposed by the Regional Advertising Cooperative must receive written approval from Stretch Zone. This ensures that all advertising aligns with the brand's standards and business system. Franchisees should be aware that Stretch Zone has the right to form, change, dissolve, or merge any Cooperative, which could impact the structure and operation of regional advertising efforts.