How many votes is each Stretch Zone Member entitled to on matters submitted to a vote?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 2. Voting Rights. Each Member is entitled to 1 vote per Franchise Business owned on each matter submitted to a vote of the Members.
- Section 3. Matters on Which Members Are Entitled to Vote. Each Member is entitled to vote on all matters affecting: (a) the allocation of funds for advertising in the DMA; (2) the nature and type of advertising to be placed by the DMA Cooperative; (3) all matters affecting the use of funds and the placement of advertising; (4) determination of increases in Members' contributions; (5) amendment of these Bylaws; (6) the dissolution of the DMA Cooperative; and (7) the election of the Officers. The Officers will decide all other matters with respect to the operation of the DMA Cooperative and the contracting for the production and placement of advertising.
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, each member of the DMA Cooperative is entitled to one vote per franchise business owned on each matter submitted to a vote of the members. This means that if a franchisee owns multiple Stretch Zone locations, they receive one vote for each location.
This voting right is significant because it allows franchisees to participate in decisions affecting the DMA (Designated Marketing Area) Cooperative. These decisions include the allocation of advertising funds, the nature and type of advertising, increases in member contributions, amendments to the bylaws, dissolution of the cooperative, and the election of officers. The officers then decide all other matters related to the operation of the DMA Cooperative and advertising contracts.
The DMA Cooperative is designed to coordinate advertising and promotional campaigns within the DMA, pooling funds for a common advertising effort. Franchisees in good standing who have signed the DMA Membership Agreement are eligible for membership. The voting rights ensure that franchisees have a say in how these cooperative efforts are managed and how their contributions are utilized.
Prospective Stretch Zone franchisees should understand that their voting power within the DMA Cooperative is directly tied to the number of franchise businesses they own. This structure ensures that larger, multi-unit operators have a proportionally greater influence on cooperative decisions, while still giving each individual franchise a voice.