Does removal of a Stretch Zone DMA Cooperative officer affect their contract rights?

According to Stretch Zone's 2025 Franchise Disclosure Document, the removal of an officer within the DMA Cooperative does not inherently affect their contract rights. Article 5, Section 3 of the DMA Cooperative bylaws states that members can remove any officer if it is in the best interest of the Cooperative. However, this removal is "without prejudice to the contract rights, if any, of the person so removed."

This clause protects the removed officer's rights under any existing contracts they may have with the DMA Cooperative. For example, if the officer has a separate agreement for services rendered, their removal as an officer does not automatically void that agreement. The contract rights remain in effect unless there are other valid reasons for termination as stipulated in the contract itself.

For a prospective Stretch Zone franchisee, this means that serving as an officer in the DMA Cooperative carries some protection. If removed from the officer position, any existing contractual agreements with the Cooperative should remain valid. However, it is important to review all contracts carefully and seek legal advice to fully understand the scope and limitations of these rights.