Is a Stretch Zone Franchise Business required to be a member of more than one Regional Advertising Cooperative?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that we have the right to establish a Regional Advertising Cooperative in any DMA. Upon our request, you will immediately become a member of the Regional Advertising Cooperative for the DMA that includes your Limited Protected Territory. Your Franchise Business does not have to be a member of more than 1 Regional Advertising Cooperative. All Company-Owned Units within your DMA must also become members of the Regional Advertising Cooperative. There will be governing documents available for your review.
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, a franchisee is not required to be a member of more than one Regional Advertising Cooperative. However, Stretch Zone has the right to establish a Regional Advertising Cooperative in any Designated Market Area (DMA). If Stretch Zone requests, a franchisee must immediately become a member of the Regional Advertising Cooperative for the DMA that includes their Limited Protected Territory. All Company-Owned Units within the DMA must also become members of the Regional Advertising Cooperative.
This means that while Stretch Zone franchisees are obligated to join a Regional Advertising Cooperative if one is established for their DMA, they will not be compelled to participate in multiple cooperatives simultaneously. This policy potentially limits the financial burden and administrative complexity for franchisees related to regional advertising efforts.
Franchisees should be aware that Stretch Zone retains the right to form, change, dissolve, or merge any Cooperative. There will be governing documents available for review. It is important for prospective franchisees to carefully review these documents to understand the rules, procedures, and obligations associated with the Regional Advertising Cooperative.