Is membership in the DMA Cooperative required for Stretch Zone franchisees?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
t COOPERATIVE: DMA Stretch Zone Regional Cooperative Its: MEMBER:
EXHIBIT A
BYLAWS FOR ___________________________ DMA COOPERATIVE (an Unincorporated Association)
ARTICLE 1 Statement of Purpose
| Stretch Zone Franchising, LLC, a Florida limited liability company; and franchisor of the | |
|---|---|
| Stretch Zone Franchises creates the DMA Cooperative as an | |
| unincorporated association organized for the furtherance of each Franchised Outlet and | |
| Company-Owned Outlet located in the DMA (the "Members") | |
| for sales and promotional efforts in connection with each Member's operation of a Stretch Zone | |
| Franchise Business (collectively the "Franchises") through the joint pooling of funds for a common | |
| advertising effort. The Members believe that the Franchises will be best served by a cooperative | |
| effort to coordinate the placement of advertising and promotional campaigns in the DMA in | |
| accordance with the terms of the DMA Membership Agreement that has been signed by all | |
| Members, as well as these Bylaws. |
ARTICLE 2 Offices
The DMA Cooperative may have such offices within the boundaries the DMA as may be designated for the business of the DMA Cooperative.
ARTICLE 3 Membership and Contributions
- Section 1. Qualifications. All Franchised Outlet Members must be Franchisees under a Franchise Agreement with the Franchisor and currently not in default under their respective Franchise Agreement (the "Franchise Agreement") and be a party to a DMA Membership Agreement among the Franchisor, the DMA Cooperative and the Member.
- 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.
Section 4. Termination of Membership.
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, membership in the DMA (Designated Marketing Area) Cooperative is required for all franchisees. The FDD states that all franchised outlet members must be franchisees under a Franchise Agreement and must be party to a DMA Membership Agreement among the Franchisor, the DMA Cooperative, and the Member. This agreement facilitates sales and promotional efforts through joint pooling of funds for advertising and promotional campaigns within the DMA.
Each member of the DMA Cooperative has one vote per franchise business owned on matters submitted to the members. These matters include the allocation of funds for advertising, the nature and type of advertising, the use of funds and placement of advertising, determination of increases in members' contributions, amendments to the Bylaws, dissolution of the DMA Cooperative, and the election of officers. The officers then decide all other matters related to the operation of the DMA Cooperative and contracting for advertising.
Franchisees should note that membership termination occurs when a member transfers their franchise, their Franchise Agreement is terminated or expires, or the member ceases to be a Stretch Zone franchisee in good standing. This mandatory cooperative ensures a coordinated advertising effort, but also requires franchisees to participate in decisions regarding advertising and contribute financially, with the potential for termination of the franchise agreement for failure to make required payments.