What is the purpose of the 'BACKGROUND' section within 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. |
Source: Item 3 — Franchisee/Debtor's Warranties. (FDD pages 263–364)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, the 'BACKGROUND' section of the Regional Advertising Cooperative Agreement serves to establish the context and purpose of the agreement between Stretch Zone Franchising, LLC, the franchisee (referred to as the 'Member'), and the DMA (Designated Marketing Area) Stretch Zone Regional Advertising Cooperative. It clarifies the relationship between the parties and the basis for forming the cooperative.
Specifically, the 'BACKGROUND' section outlines 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 Section 7.2 of the Franchise Agreement grants Stretch Zone the right to establish a Regional Advertising Cooperative in any DMA. Furthermore, it 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 that DMA.
In essence, this section sets the stage by defining the roles, rights, and responsibilities of each party involved in the Regional Advertising Cooperative. It confirms that the franchisee is operating under a pre-existing Franchise Agreement, that Stretch Zone has the authority to form such cooperatives, and that the cooperative's purpose is to enhance the marketing and promotional activities of the Stretch Zone franchises within the designated area. This provides a clear understanding of the foundation upon which the cooperative is built and its intended function.