How many votes is a Stretch Zone Member entitled to within the DMA Cooperative?
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 (Designated Marketing Area) Cooperative is entitled to one vote per franchise business owned. This applies to any matter that requires a vote of the members. These matters include how funds are allocated for advertising within the DMA, the nature and type of advertising to be used, and any decisions affecting the use of funds and placement of advertising. Members also vote on increases to their contributions, amendments to the cooperative's bylaws, the dissolution of the DMA Cooperative, and the election of officers.
This voting structure ensures that each franchisee has a direct say in how the cooperative operates and how its funds are used for advertising and promotional activities. It allows franchisees to influence decisions that directly impact their business within the DMA. However, the officers of the DMA Cooperative have the authority to decide on all other matters related to the cooperative's operation and advertising contracts.
This arrangement is fairly typical in franchise systems that utilize advertising cooperatives, as it balances the need for franchisee input with the efficiency of having a smaller group of officers manage day-to-day operations. Prospective Stretch Zone franchisees should understand that while they have a vote on significant issues, the officers have considerable discretion in other areas.