What is the name of the special fund created by Stretch Zone for advertising?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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. We will carry any monies not spent by the Media Fund in any particular year to fund production expenses in the next year.
- (d) Contents and Concepts. We retain sole discretion over all advertising, marketing and public relations programs and activities financed by the Media Fund, including the creative
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 special fund created for advertising is called the "Stretch Zone Media Fund." Stretch Zone deposits advertising contributions into this fund, which benefits both franchised and company-owned units that contribute. Stretch Zone manages the Media Fund and uses it to cover the costs of creating advertising, marketing, and promotional materials that they believe will benefit the Stretch Zone business system. These funds can also be used for regional or national advertising and promotional activities, including producing advertising campaigns, conducting test marketing and surveys, and engaging in public relations.
Stretch Zone can charge the Media Fund for their services instead of hiring third-party agencies. However, the funds cannot be used to sell Stretch Zone franchises. Stretch Zone does not assume liability for the fund's maintenance, direction, or administration, except as expressly stated in the agreement. All expenditures from the Media Fund are at Stretch Zone's discretion, and they can spend more or less than the total contributions in any given year.
Stretch Zone can also loan money to the Media Fund or borrow from other lenders to cover deficits, or they can invest any surplus for future use. Any unspent money in a particular year will be carried over to fund production expenses in the following year. Stretch Zone retains complete control over all advertising, marketing, and public relations programs and activities financed by the Media Fund, including creative content and concepts.