What is the name of the special fund that Stretch Zone uses for advertising contributions?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
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(d) of the Franchise Agreement for the benefit of all Franchised Units and Company-Owned Units who contribute to the Media Fund.
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, the special fund used for advertising contributions is called the "Stretch Zone Media Fund", also referred to as the "Media Fund". Stretch Zone deposits advertising contributions into this fund, which is used for the benefit of all franchised and company-owned units that contribute to it.
Stretch Zone administers the Media Fund and uses it to cover the costs of creating advertising, marketing, and promotional materials that they deem beneficial to the Stretch Zone Business System. The funds are also used for regional and national advertising and promotional activities, including producing advertising campaigns, conducting test marketing and surveys, and engaging in public relations activities. Stretch Zone can charge the Media Fund for their services instead of hiring third-party agencies.
Stretch Zone has sole discretion over all advertising, marketing, and public relations programs financed by the Media Fund, including creative concepts, materials, endorsements, geographic markets, media placement, and allocation. The Media Fund may be used to cover the costs of preparing and producing associated materials and programs, such as video, audio, and written advertising materials, sponsorships, direct mail, social media programs, and market research. Company-owned units are required to contribute to the Media Fund on the same basis as franchised units.
Stretch Zone retains the right to terminate the collection and disbursement of advertising contributions and the Media Fund. Upon termination, the remaining funds will be distributed to existing franchised units and company-owned units on a pro-rata basis based on their relative amount of contributions.