factual

What is the purpose of the DMA Cooperative created by Stretch Zone Franchising, LLC?

Stretch_Zone Franchise · 2025 FDD

Answer from 2025 FDD Document

t COOPERATIVE: DMA Stretch Zone Regional Cooperative Its: MEMBER:

EXHIBIT A

BYLAWS FOR ___________________________ DMA COOPERATIVE (an Unincorporated Association)

ARTICLE 1 Statement of Purpose

Stretch Zone Franchising, LLC, a Florida limited liability company; and franchisor of the
Stretch Zone Franchises creates the DMA Cooperative as an
unincorporated association organized for the furtherance of each Franchised Outlet and
Company-Owned Outlet located in the DMA (the "Members")
for sales and promotional efforts in connection with each Member's operation of a Stretch Zone
Franchise Business (collectively the "Franchises") through the joint pooling of funds for a common
advertising effort.

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 DMA (Designated Marketing Area) Cooperative is designed to further the sales and promotional efforts of Stretch Zone franchises within a specific DMA. This is achieved through the joint pooling of funds to create and implement advertising and promotional campaigns. The DMA Cooperative will maintain a bank account for advertising contributions and expense payments, with Stretch Zone Franchising, LLC having access for monitoring purposes.

Franchisees participating in the DMA Cooperative are required to adhere to the terms outlined in the DMA Membership Agreement and the cooperative's bylaws. Members contribute to the cooperative monthly, with contributions not exceeding 1% of gross revenues. The initial contribution amount is determined during the cooperative's organizational meeting, and adjustments can be made through a majority vote of the members at regular meetings. These funds are allocated for expenditures such as television and radio media placement, agency expenses, point-of-purchase materials, and administrative fees, all subject to member approval and franchisor agreement.

Prospective Stretch Zone franchisees should understand that participation in the DMA Cooperative involves financial contributions and adherence to cooperative decisions regarding advertising and promotions. Failure to make timely payments can result in penalties, including potential termination of both the DMA Agreement and the Franchise Agreement. While the cooperative aims to enhance marketing efforts, franchisees should actively participate in meetings and voting processes to influence the allocation of funds and the nature of advertising campaigns to best serve their business interests.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.