Under what circumstances can an officer of the Stretch Zone DMA Cooperative be removed?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 3. Removal. The Members may remove any officer whenever in their judgment the best interests of the DMA Cooperative would be served, but removal is without prejudice to the contract rights, if any, of the person so removed.
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, the members of the DMA Cooperative have the authority to remove any officer. This action can be taken whenever the members believe it is in the best interest of the DMA Cooperative. However, the removal of an officer does not negate any existing contract rights that the removed officer may have.
This provision ensures that the DMA Cooperative can adapt its leadership as needed to serve its members' best interests. It also protects the rights of individuals who are removed from their positions, ensuring that any contractual agreements remain in effect.
For a prospective Stretch Zone franchisee, this means that while serving as an officer in the DMA Cooperative, their position is subject to the judgment of the other members. While they can be removed, any contractual rights they possess are preserved, offering a degree of protection.