Will Pump It Up account for the Brand Fund separately from its other funds?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You may be required to participate in advertising, marketing, social media, promotions, research and public relations programs and national cause marketing partner program events instituted by us or the Brand Fund.
Among the programs, concepts, and expenditures for which we may utilize the Brand Fund monies are: (a) creative development and production of print ads, electronic media, commercials, radio spots, point of purchase materials, direct mail pieces, door hangers, and other advertising and promotional materials; (b) creative development, preparation, production and placement of video, audio, and written materials and electronic media; (c) media placement and buying, including all associated expenses and fees; (d) administering regional and multi-regional marketing and advertising programs; (e) market research and customer satisfaction surveys, including the use of secret shoppers; (f) the creative development of, and actual production associated with, premium items, giveaways, promotions, contests, public relation events, and charitable or nonprofit events; (g) creative development of new program offerings for Pump It Up Businesses; (h) creative development of signage, posters, and individual Pump It Up Business décor items including wall graphics; (i) recognition and awards events and programs; (j) system recognition events, including periodic national and regional conventions and meetings; (k) website, extranet and/or intranet development and maintenance; (l) development, implementation, and maintenance of an electronic commerce Website and reservation system and/or related strategies; (m) retention and payment of advertising and promotional agencies and other outside advisors including retainer and management fees; (n) social media platform development and management; (o) public relations and community involvement activities and programs; (p) expenses of the Franchise Advisory Council; (q) search engine optimization and other similar online and/or social media engagement tools; and (r) any other purposes deemed beneficial to the Pump It Up System by us.
- (3) We will account for the Brand Fund separately from our other funds.
We are not required to segregate any Brand Fund monies from our other monies.
We will not use the Brand Fund for any of our general operating expenses.
We and our affiliates may be reimbursed by the Brand Fund for administrative expenses directly related to the Brand Fund's marketing programs, including without limitation, conducting market research, preparing advertising and marketing materials, and collecting and accounting for contributions to the Brand Fund.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, Pump It Up will account for the Brand Fund separately from its other funds. However, Pump It Up is not required to segregate any Brand Fund monies from its other monies. Additionally, Pump It Up states that it will not use the Brand Fund for any of its general operating expenses. These stipulations provide a degree of transparency and assurance to franchisees regarding the Brand Fund's usage.
Pump It Up and its affiliates may be reimbursed by the Brand Fund for administrative expenses directly related to the Brand Fund's marketing programs. These expenses include conducting market research, preparing advertising and marketing materials, and collecting and accounting for contributions to the Brand Fund. This indicates that while the Brand Fund is maintained separately, there are mechanisms for Pump It Up to draw from it for specific, related expenses.
Pump It Up will prepare an annual, unaudited statement of the Brand Fund's collections and expenses within 90 days after their fiscal year end. This statement will be available for franchisee review upon written request. Pump It Up may also have the Brand Fund audited annually, at the Brand Fund's expense, by an independent certified public accountant. These measures ensure that franchisees have access to information about the Brand Fund's financial activities, promoting accountability and trust.