Who has sole discretion over all expenditures from the Stretch Zone Media Fund?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
Administration. We will administer the Media Fund. We use the funds in the Media Fund to pay for the costs of creating various advertising, marketing, and promotional materials that we consider beneficial to the Business System. We also use the funds in the Media Fund to pay the costs of conducting regional and/or national advertising and promotional activities (including the cost of producing advertising campaigns and marketing materials, conducting test marketing and marketing surveys, and public relations activities) that we consider beneficial to the Business System. We can charge the Media Fund for our costs for services we provide, in lieu of engaging third party agencies to provide these services. We will not use any of the funds to offer or sell Stretch Zone Franchises to prospective franchisees.
Expenditures. All expenditures are at our sole discretion. We may spend in any calendar year more or less than the total Advertising Contributions to the Media Fund in that year. We may loan to the Media Fund or borrow from other lenders for the Media Fund to cover deficits of the Media Fund or cause the Media Fund to invest any surplus for future use by the Media Fund. We will carry any monies not spent by the Media Fund in any particular year to fund production expenses in the next year.
Contents and Concepts. We retain sole discretion over all advertising, marketing and public relations programs and activities financed by the Media Fund, including the creative concepts, materials and endorsements used and the geographic market, media placement and allocation. You agree that the Media Fund may be used to pay the costs of preparing and producing associated materials and programs that we determine, including video, audio and written advertising materials employing advertising agencies; sponsorship of sporting, charitable or similar events, administering regional and multi-regional advertising programs including purchasing direct mail and other media advertising, social media programs, and employing advertising agencies to assist with marketing efforts; and supporting public relations, market research and other advertising, promotional and marketing activities.
Source: Item 11 — ITEM -11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 36–44)
What This Means (2025 FDD)
According to Stretch Zone's 2025 Franchise Disclosure Document, Stretch Zone retains sole discretion over all expenditures from the Media Fund. This means Stretch Zone has the authority to decide how the funds are spent, without requiring approval from franchisees.
Stretch Zone uses the Media Fund to cover the costs of creating advertising, marketing, and promotional materials that they deem beneficial to the Stretch Zone business system. These funds can also be used for regional or national advertising and promotional activities, including producing advertising campaigns, conducting market surveys, and engaging in public relations activities. Stretch Zone can also charge the Media Fund for their own services instead of hiring third-party agencies.
Stretch Zone has the flexibility to spend more or less than the total advertising contributions in any given year. They can also loan money to or borrow from the Media Fund to cover deficits or invest any surplus for future use. Any unspent funds are carried over to the next year. Stretch Zone also retains sole discretion over all advertising, marketing, and public relations programs financed by the Media Fund, including the creative concepts, materials, endorsements, geographic market, media placement, and allocation.