What is the purpose of the Stretch Zone Regional Advertising Cooperative Agreement?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
The purpose of the DMA Cooperative is the furtherance of each Member's sales and promotional efforts in connection with the operation of their Stretch Zone Franchises through the joint pooling of funds for the creation and placement of advertising and promotional campaigns and plans in the DMA. The DMA Cooperative will open a bank account in its name with Bank of America into which advertising contributions are deposited and from which the expenses incurred are paid. The Franchisor will be granted access to the account for monitoring purposes.
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 purpose of the DMA (Designated Marketing Area) Cooperative is to enhance each member's sales and promotional activities. This is achieved through the collective pooling of funds to create and implement advertising and promotional campaigns within the DMA. The DMA Cooperative will maintain a bank account with Bank of America for depositing advertising contributions and paying related expenses, with Stretch Zone Franchising, LLC having access for monitoring purposes. This cooperative effort allows franchisees to coordinate advertising placement and promotional campaigns within their designated area.
Franchisees, as members of the DMA Cooperative, contribute to the cooperative on a monthly basis, with contributions not exceeding 1% of their gross revenues. The initial amount of these monthly contributions is determined during the organizational meeting of the members. These contributions can be reviewed and revised by a majority vote of the members during regular meetings. Payments are facilitated through the ClubReady Electronic Payment system, as outlined in the Franchise Agreement.
The funds collected by the DMA Cooperative are allocated for expenditures such as television and radio media placement, agency expenses related to advertising placement, point-of-purchase materials for promotions, and administrative and professional fees associated with advertising. Members have voting rights on matters affecting the allocation of funds, the nature and type of advertising, the use of funds, contribution increases, amendments to bylaws, dissolution of the cooperative, and the election of officers. The officers then manage the operation of the DMA Cooperative and contract for advertising production and placement.