What is the purpose of the 'BACKGROUND' section in the Stretch Zone Regional Advertising Cooperative Agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Regional Advertising Cooperative Agreement (this "Agreement") is signed on among Stretch Zone Franchising, LLC, a Florida limited liability |
|---|
| company (the "Franchisor");, d/b/a Stretch Zone (the "Member"); |
| and DMA Stretch Zone Regional Advertising Cooperative, an |
| unincorporated association (the " DMA Cooperative"). |
| BACKGROUND |
| A. |
| The Franchisor and the Member are Franchisor and Franchisee respectively under a |
| Stretch Zone Franchise Agreement (the "Franchise Agreement") relating to a Franchised Business |
| within the Designated Marketing Area ("DMA"). |
| B. |
| Under Section 7.2 of the Franchise Agreement, the Franchisor has the right to |
| establish a Regional Advertising Cooperative in any DMA. |
| C. |
| This Agreement and Bylaws included in Exhibit A creates the DMA Cooperative for |
| the furtherance of each Member's sales and promotional efforts in connection with each Member's |
| operation of a Stretch Zone Franchise (collectively the "Franchises") and the Member's membership |
| in and participation with the DMA Cooperative. |
| The parties agree as follows: |
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, the 'BACKGROUND' section in the Regional Advertising Cooperative Agreement serves to establish the context and purpose of the agreement between Stretch Zone Franchising, LLC (the Franchisor) and the franchisee (referred to as the "Member") regarding the DMA (Designated Marketing Area) Cooperative.
The 'BACKGROUND' section clarifies that the Franchisor and the Member are parties to a Stretch Zone Franchise Agreement related to a franchised business within a specific DMA. It also states that the Franchisor has the right to establish a Regional Advertising Cooperative in any DMA, as per Section 7.2 of the Franchise Agreement.
Furthermore, the 'BACKGROUND' section explains that the agreement and its included Bylaws create the DMA Cooperative to support the sales and promotional efforts of each Member's Stretch Zone Franchise within the DMA. This sets the stage for the detailed terms and conditions outlined in the subsequent sections of the agreement, clarifying the relationship and intentions of the parties involved.