Is a Stretch Zone franchisee allowed to advertise outside of their DMA?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 1.1 GRANT OF FRANCHISE
- (a) Grant. We grant to you the right and you undertake the obligation, to develop and operate a Franchise Business subject to the terms of this Agreement. You will operate the Franchise Business in accordance with the Business System. We grant you the right to use the Principal Trademark, Patents and other Intellectual Property. You will operate the Franchise Business only at the location described in Section 1.2. You agree not to advertise outside of your DMA.
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, franchisees are explicitly restricted from advertising outside of their designated DMA (Designated Market Area). Section 1.1(a) of the agreement clearly states that franchisees agree not to advertise outside of their DMA. This restriction is part of the agreement made when Stretch Zone grants the franchisee the right to develop and operate a franchise business. The franchisee must operate the business in accordance with the Stretch Zone business system.
This restriction has significant implications for prospective franchisees. It means that their advertising efforts must be concentrated within their local market, potentially limiting their reach and requiring a more focused marketing strategy. While franchisees must spend a minimum of $2,000 per month on local advertising within their DMA, this restriction ensures that advertising efforts are targeted and do not overlap or compete with other franchisees in different areas.
Stretch Zone also retains control over advertising materials. Franchisees must submit all local advertising materials for approval, unless the materials have been previously approved or provided by Stretch Zone. This approval process ensures brand consistency and compliance with Stretch Zone's standards. Additionally, Stretch Zone can require franchisees to discontinue the use of any promotional materials or advertising that they deem harmful to the business system, even if previously approved. Franchisees have 5 days to comply with such a notice.
Furthermore, franchisees must adhere to Stretch Zone's guidelines regarding social media. They cannot engage in social media concerning the franchise business without prior written consent and must use designated social media management software. All content on the franchisee's social media regarding Stretch Zone belongs to the company. These restrictions collectively highlight the importance of adhering to Stretch Zone's marketing and advertising guidelines and the limitations placed on franchisees' independent advertising efforts.