What is the minimum amount a Stretch Zone franchisee must spend per month on Local Advertising?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
he Franchise Agreement, we license to you the right to use the "Stretch Zone® " trade name and the other Intellectual Property. [Section 2.17 of the Franchise Agreement.]
Software. We sublicense to you the right to use the Stretch Net, Career Plug, Office 365, QuickBooks Online, KnetK, Factor 4, Predictive Index, Canva, and Perkville Software under the Software Sublicense Agreement included in Exhibit K. [Section 2.18 of the Franchise Agreement.]
OPTIONAL ASSISTANCE AFTER OPENING
Radio and Television Commercials. We may provide a preapproved radio script and camera-ready television commercials (not including airtime) for your use in your DMA but only if they are created through funds in the Media Fund. [Subsection 2.16(e) of the Franchise Agreement.]
ADVERTISING PROGRAMS UNDER FRANCHISE AGREEMENT
OUR ADVERTISING OBLIGATIONS
We, in our role as Franchisor, are not obligated to use our own funds to conduct advertising in your Limited Protected Territory. Our Company-Owned Units will contribute to the Marketing Fund (described below) to the same extent as Franchised Units are required to contribute. (Section 7.5 of the Franchise Agreement).
PRE-GRAND OPENING AND FRANCHISE BUSINESS GRAND OPENING
As detailed above, we will provide certain assistance in connection with the grand opening of the Franchise Business during the, app
Source: Item 11 — ITEM -11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–44)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum of $2,000 per month on local advertising within their designated market area (DMA). This expenditure is a mandatory obligation outlined in Section 7.1 of the Franchise Agreement. Franchisees are explicitly prohibited from advertising outside of their DMA, ensuring that advertising efforts are concentrated within their territory.
Stretch Zone maintains control over advertising materials, requiring franchisees to submit all local advertising materials for approval, unless the materials have been previously approved or provided by the franchisor. This oversight ensures brand consistency and compliance with intellectual property guidelines, as all materials containing Stretch Zone's intellectual property must include the appropriate designations (service marksm, trademark™, registered®, or copyright©). The franchisor has 10 days to provide written disapproval of submitted materials; otherwise, the materials are considered approved.
Stretch Zone also reserves the right to require franchisees to withdraw or discontinue the use of any promotional materials or advertising, even if previously approved, if the franchisor believes the materials may harm the Business System. Franchisees must comply with such requests within 5 days of receiving written notice. Furthermore, franchisees must obtain prior written consent from Stretch Zone before engaging in any social media activities related to the Franchise Business and must purchase social media management software from a Designated Supplier. All social media content regarding Stretch Zone belongs to the franchisor, highlighting the level of control they maintain over the brand's public image.
In addition to the local advertising requirements, Stretch Zone has the right to establish a Regional Advertising Cooperative in any DMA, and franchisees may be required to join. If a Regional Advertising Cooperative is established, members may be required to contribute up to 2% of their monthly Gross Revenues, which can be credited against their local advertising obligation. This cooperative aims to administer advertising programs and develop standardized promotional materials for its members, subject to the franchisor's approval. These measures ensure that Stretch Zone franchisees actively promote their businesses while adhering to the franchisor's standards and guidelines.