Does Stretch Zone have the right to dissolve a Regional Advertising Cooperative?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Changes, Dissolution or Merger of Cooperatives. We have the right to form, change, dissolve or merge any Cooperative.
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, Stretch Zone retains the right to dissolve any Regional Advertising Cooperative. Specifically, Stretch Zone has the authority to form, change, dissolve, or merge any Cooperative.
This provision grants Stretch Zone significant control over the advertising and marketing strategies employed by its franchisees at the regional level. While franchisees are required to participate in Regional Advertising Cooperatives if requested by Stretch Zone, the franchisor ultimately decides the fate of these cooperatives.
For a prospective franchisee, this means that the structure and operation of regional advertising efforts can change at Stretch Zone's discretion. Franchisees should stay informed about any potential changes to the Regional Advertising Cooperative and understand how these changes might affect their local advertising strategies and costs.