factual

What is the 'Media Fund' used for in the Stretch Zone franchise system?

Stretch_Zone Franchise · 2025 FDD

Answer from 2025 FDD Document

olution or Merger of Cooperatives**. We have the right to form, change, dissolve or merge any Cooperative.

Section 7.3 INTERNET ADVERTISING/WEBSITE

  • (a) Website. We will list your Franchise on our Website. We maintain sole and exclusive rights to all content and information displayed or collected on our Website. The content and information includes company information, user demographics and profiles, pictures and graphics, testimonials, advertisements, franchise information, product and/or service information and all other information that we may designate in writing. You will not create or maintain any website other than the website we provide.
  • (b) Domain Name. We prohibit you from registering any domain name using the Intellectual Property and from hosting a website to promote the Franchise Business or the products or services without our prior written consent. We retain all rights to the trade names and other Intellectual Property, and any associated Internet domains used to identify the Business System.

Section 7.4 MEDIA FUND

  • (a) Creation. We have created a special fund called the "Stretch Zone Media Fund" (the "Media Fund"), into which we will deposit the Advertising Contributions described in Subsection 3.1(e) for the benefit of all Franchised Units and Company-Owned Units who contribute to the Media Fund.
  • (b) Administration. We will administer the Media Fund. We use the funds in the Media Fund to pay for the costs of creating various advertising, marketing, and promotional materials that we deem beneficial to the Business System. We also use the funds in the Media Fund to pay the costs of conducting regional and/or national advertising and promotional activities (including the cost of producing advertising campaigns and marketing materials, conducting test marketing and marketing surveys, and public relations activities) that we deem beneficial to the Business System. We can charge the Media Fund for our costs for services we provide, in lieu of engaging third party agencies to provide these services. We will not use any of the funds to offer or sell Stretch Zone Franchises to prospective franchisees. We assume no other direct or indirect liability or obligation to you for the maintenance, direction or administration of the Media Fund, except as expressly provided in this ARTICLE 7.
  • (c) Expenditures. All expenditures are at our sole discretion. We may spend in any calendar year more or less than the total Advertising Contributions to the Media Fund in that year. We may loan to the Media Fund or borrow from other lenders for the Media Fund to cover deficits of the Media Fund or cause the Media Fund to invest any surplus for future use by the Media Fund.

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, the Media Fund is a special fund created to benefit both franchised and company-owned units that contribute to it. Stretch Zone administers this fund and uses it to cover the costs of creating advertising, marketing, and promotional materials that they believe will benefit the entire Stretch Zone Business System.

Specifically, the Media Fund is used to pay for regional and national advertising and promotional activities. This includes producing advertising campaigns and marketing materials, conducting test marketing and marketing surveys, and engaging in public relations activities. Stretch Zone can also charge the Media Fund for their own services instead of hiring third-party agencies. However, the funds cannot be used to sell Stretch Zone franchises to prospective franchisees.

Stretch Zone has sole discretion over all advertising, marketing, and public relations programs financed by the Media Fund, including the creative concepts, materials, endorsements, geographic market, media placement, and allocation. The advertising is anticipated to be placed in regional and/or national markets via television, radio, periodicals, newspapers, and/or direct mail campaigns. Stretch Zone prepares an annual report of the Media Fund's receipts and expenditures and sends it to franchisees within 150 days after the end of each fiscal year, but this report is not audited.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.