What was the initial amount required per Stretch Zone franchise to start the Media Fund?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
ining per person per day. Revenue is recognized upon completion of the training.
Media Fund Fees:
The Company has established a Media Fund. The Company uses the media funds to create various advertising, marketing and promotional materials deemed beneficial. Media fund revenue is recognized as a percentage of gross sales and is recognized as received throughout the year from the franchisees. An initial amount of $500 per
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, an initial contribution of $500 was required from each franchise to start the Media Fund. This initial amount is included in deferred revenue. The Media Fund is used by Stretch Zone to create advertising, marketing, and promotional materials that are deemed beneficial for the franchise system.
This initial contribution is a one-time fee, separate from any ongoing contributions that franchisees may be required to make to a DMA Cooperative for regional advertising. The DMA Cooperative contributions are capped at 1% of gross revenues, but the initial amount of monthly contributions is determined at the organization's initial meeting.
Prospective Stretch Zone franchisees should consider this initial fee as part of their startup costs. They should also inquire about how the Media Fund is managed, what types of advertising and marketing activities it supports, and how the fund's effectiveness is measured. Understanding the fund's strategy and performance can help franchisees assess the value they receive from their contributions.