factual

What qualifications must Stretch Zone Franchised Outlet Members meet to participate in the DMA Cooperative?

Stretch_Zone Franchise · 2025 FDD

Answer from 2025 FDD Document

  • Section 1. Qualifications. All Franchised Outlet Members must be Franchisees under a Franchise Agreement with the Franchisor and currently not in default under their respective Franchise Agreement (the "Franchise Agreement") and be a party to a DMA Membership Agreement among the Franchisor, the DMA Cooperative and the Member.

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, to qualify for the DMA Cooperative, Franchised Outlet Members must meet specific criteria. First, they must be active Franchisees in good standing under a Franchise Agreement with Stretch Zone. This means they must have a current franchise agreement and not be in default of any terms outlined in that agreement. Second, they must be a party to a DMA Membership Agreement, which involves Stretch Zone, the DMA Cooperative, and the Member.

These qualifications ensure that all members of the DMA Cooperative are committed to the Stretch Zone brand and adhere to the company's standards. By requiring members to be in good standing and party to a specific agreement, Stretch Zone aims to maintain a cohesive and compliant group focused on promoting the brand within their designated marketing area.

These requirements are typical in franchise systems to ensure brand consistency and protect the franchisor's interests. Franchisees should carefully review the terms of both the Franchise Agreement and the DMA Membership Agreement to fully understand their obligations and the conditions for maintaining membership in the DMA Cooperative. Failure to meet these qualifications could result in the termination of membership and potential repercussions on their franchise agreement.

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.