Under what conditions can a Stretch Zone franchisee solicit business outside their DMA?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Grant. We grant to you the right and you undertake the obligation, to develop and operate a Franchise Business subject to the terms of this Agreement. You will operate the Franchise Business in accordance with the Business System. We grant you the right to use the Principal Trademark, Patents and other Intellectual Property. You will operate the Franchise Business only at the location described in Section 1.2. You agree not to advertise outside of your DMA.
Source: Item 16 — ITEM -16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, franchisees are generally restricted from advertising outside of their Designated Marketing Area (DMA). The franchise agreement grants the franchisee the right and obligation to develop and operate a Stretch Zone franchise within the terms of the agreement. The franchisee must operate the franchise business according to the established business system and is granted the right to use Stretch Zone's trademarks and intellectual property. The franchisee is restricted to operating the business only at the location specified in the agreement.
The FDD also mentions the establishment of a DMA Cooperative, which is created to further sales and promotional efforts through joint advertising campaigns within the DMA. This cooperative pools funds for advertising and promotional activities within the designated marketing area. The purpose of the DMA Cooperative is to enhance each member's sales and promotional efforts related to their Stretch Zone franchises through coordinated advertising and promotional plans within the DMA.
Given the explicit restriction against advertising outside the DMA and the focus of the DMA Cooperative on marketing within the DMA, a Stretch Zone franchisee's ability to solicit business outside their DMA appears to be limited. The FDD does not provide specific conditions under which a franchisee could solicit business outside their DMA. A prospective franchisee should seek clarification from the franchisor regarding any exceptions or specific circumstances where out-of-DMA solicitation might be permitted.