Where in the Stretch Zone Franchise Disclosure Document can I find the description of the 'Initial Advertising Contribution' fee?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
onthly non-refundable Royalty Fee equal to 7% of Gross Revenues. However, you must pay a minimum monthly Royalty Fee of $900 beginning on the 1st full calendar month after the Opening Date. THIS MINIMUM ROYALTY FEE IN NO WAY INFERS THAT YOU WILL EXPERIENCE GROSS REVENUES OF ANY PARTICULAR LEVEL.
- (c) Technology Fee. For providing you with a store e-mail account, a listing on our Website and a sublicense of the Stretch Net, Career Plug, Office 365, QuickBooks Online, KnetK, Factor 4, Predictive Index, Canva, and Perkville, we will charge you a monthly fee contained in the Operations Manual or otherwise provided in writing (currently $375 per month), which we may modify.
- (d) Opening Items. You must purchase from us your initial items of kits, bolsters and wedges from us.
- (e) Advertising Contributions to Media Fund. You must pay to us an initial contribution of $500 when your Franchise Business opens. You must also pay us a continuing monthly Advertising Contribution to the Media Fund in an amount equal to 2% of monthly Gross Revenues. We have the sole right to enforce your obligations and all other Franchisees that make Advertising Contributions. Neither you, nor any other Franchisee obligated to make Advertising Contributions, is a third party beneficiary of the funds.
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 Stretch Zone's 2025 Franchise Disclosure Document, details regarding the initial advertising contribution to the Media Fund can be found in Section 3.1(e). Specifically, franchisees are required to make an initial contribution of $500 to the Media Fund when their franchise business opens.
Additionally, franchisees must pay a continuing monthly advertising contribution to the Media Fund, which is equivalent to 2% of their monthly Gross Revenues. Stretch Zone retains the sole right to enforce these advertising contribution obligations among all franchisees. It's important to note that neither the franchisee nor any other franchisee contributing to the fund is considered a third-party beneficiary of the funds, and no franchisee has the right to enforce contribution obligations of another franchisee.
These funds are used by Stretch Zone to develop and produce advertising and marketing materials for regional and national use, as well as for local advertising activities conducted by franchisees. Furthermore, the initial advertising contribution will be deferred and is not payable until Stretch Zone has fulfilled all of its pre-opening obligations to the franchisee under the Franchise Agreement and the franchise is open for business.