Must a Stretch Zone Franchise Business be a member of more than one Advertising Cooperative?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
curity Agreement, and authorize us to record the UCC-1 Financing Statement and Rider included in Exhibit J.
REFUNDABILITY
All fees are nonrefundable.
UNIFORMITY
The expenses in this ITEM are uniformly imposed for persons currently offered a Franchise Business and/or Area Development Rights.
ADVERTISING COOPERATIVES – VOTING POWER OF COMPANY-OWNED UNITS
As of the date of this Disclosure Document, we have established two advertising cooperatives. Once an advertising cooperative is formed, Company-Owned Units whose limited protected territories are located within the DMA of the advertising cooperative must join the advertising cooperative and will have the same voting power as Franchised Units on all matters, including fees. The obligation of each Unit to contribute to an advertising cooperative (if formed in the applicable DMA) will not exceed 2% of monthly Gross Revenues. We will credit these contributions against your obligation for Local Advertising.
Source: Item 6 — ITEM -6 OTHER FEES (FDD pages 16–33)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, franchisees may be required to join an advertising cooperative if one is established in their Designated Marketing Area (DMA). As of the date of the Disclosure Document, Stretch Zone has established two advertising cooperatives. Company-owned units within the DMA of the advertising cooperative must join and have the same voting power as franchised units.
The obligation to contribute to an advertising cooperative, if formed in the applicable DMA, will not exceed 2% of monthly Gross Revenues. These contributions will be credited against the franchisee's obligation for Local Advertising. A Designated Marketing Area (DMA) is defined by Nielsen Media Research Company as a group of counties that make up a particular television market.
Based on the information provided, it is possible for a Stretch Zone franchise to be required to join only one advertising cooperative, specifically the one established for their DMA, if one exists. The document does not mention any requirement or scenario where a franchise would need to join more than one advertising cooperative. Therefore, membership is contingent on the DMA and the existence of a cooperative within that area.