Who bears the cost of customer surveys and research programs for Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
-house marketing department may prepare or work with advertising agencies to prepare the advertising materials for the Brand Fund.
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, 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 development and production of premium items, giveaways, promotions, contests, public relations 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 (defined below) program; and (q) any other purposes deemed beneficial to the Pump It Up System by Us. All advertising and promotional materials developed by the Brand Fund will be made available to you. We will not use the Brand Fund for the direct solicitation of franchisees, however, advertising and promotional materials may state that information regarding owning a Franchise is available through our website or toll-free telephone number.
We will account for the Brand Fund separately from our other funds; however, we are not required to segregate any Brand Fund monies from our other monies. We will not use the Brand Fund monies 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. We may use the Brand Fund to pay the administrative costs of the Brand Fund including managing the advertising, marketing, and promotional programs and payment of outside vendors utilized by the Brand Fund, and we may use the Brand Fund to pay the reasonable salaries and benefits of personnel (including our personnel and our affiliates' personnel) who manage and administer the Brand Fund.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees may be required to participate in research programs instituted by Pump It Up or the Brand Fund. These programs may include market research and customer satisfaction surveys, even using secret shoppers.
The Brand Fund is used for various programs, including market research and customer satisfaction surveys. Franchisees contribute to the Brand Fund, which is used to enhance and protect the Pump It Up system and marks. As of the effective date of the FDD, franchisees must contribute 2% of their gross revenues per month to the Brand Fund. Pump It Up has the right to increase this contribution to a maximum of 3% of gross revenues.
Pump It Up has sole discretion over the use of the Brand Fund monies for purposes it believes will benefit the system. This includes directing all programs financed by the Brand Fund and controlling the creative concepts, materials, and media placement. While franchisees contribute to the Brand Fund, Pump It Up ultimately decides how the funds are spent on research and other marketing activities. Pump It Up and its affiliates may be reimbursed from the Brand Fund for administrative expenses directly related to the Brand Fund's marketing programs, including conducting market research.