How is the Brand Fund Contribution paid to Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 6 OTHER FEES
| Type of Fee | Due Date | Remarks | |
|---|---|---|---|
| Royalty (1), (2), (3) | 6% of Gross Revenues | On or before the 7th day of each month. We have the right to modify when and how Royalties are due and payable. | The royalty is based you’re your Gross Revenues in the preceding month, and is payable to us by an automatic, electronic debit from your business checking account. |
| Brand Fund Contribution (1), (3), (4) | Currently 2% of Gross Revenues per fiscal period. We may increase your periodic contribution to the Brand Fund to an amount up to 3% of Gross Revenues. | On or before the 7th day of each month. We have the right to modify when and how the Brand Fund Contribution is due and payable. | Your contribution to the Brand Fund is in addition to your own expenditures for Local Store Marketing. The Brand Fund contribution is payable to us by an automatic, electronic debit from your business checking account. |
| Local Store Marketing (4), (5) | The greater of 2% of Gross Revenues or $12,000. | Annually in accordance with your Marketing Plan. | Your Local Store Marketing is in addition to your contribution to the Brand Fund and any Regional Advertising Co-op. You must begin conducting Local Store Marketing the month after you open for business. See Item 11. |
| --- | --- | --- | --- |
| Type of Fee | Amount | Due Date | Remarks |
| Indemnification (1) | Fines, losses, damages, costs and expenses we incur. | Upon demand. | Payable if we incur any losses due to your breach of the Franchise Agreement or any other action or inaction by you or any other person relating to your Franchise. |
| Reimbursement of Costs and Expenses (1) |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the Brand Fund contribution is currently 2% of gross revenues per fiscal period, although Pump It Up retains the right to increase this to a maximum of 3%. This contribution is due on or before the 7th day of each month. Pump It Up also reserves the right to modify when and how the Brand Fund Contribution is due and payable.
The Brand Fund contribution is payable to Pump It Up by an automatic, electronic debit from the franchisee's business checking account. This payment method requires the franchisee to sign documents authorizing Pump It Up to electronically debit their account for the Brand Fund contributions, as well as royalties, late fees, interest, and any other amounts owed. These Electronic Depository Transfer Account ("EDTA") documents are included as Exhibit 3 to the Franchise Agreement.
If a Pump It Up franchisee fails to accurately report their gross revenues, Pump It Up may debit the franchisee's EDTA for 120% of the highest monthly royalty and Brand Fund contribution previously debited. If there is no prior debit history, Pump It Up will determine the debit amount at its sole discretion, based on contributions made by other franchisees. After determining the actual amount owed, Pump It Up will either debit the difference or apply a credit to the franchisee's next payment.