What is a 'Co-op Contribution' for a Pump It Up Regional Co-op Fund?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Regional Co-op Fund has been established in your DMA, you shall contribute the amount established, from time to time, by the Regional Co-op Fund for its members ("Co-op Contribution"). You shall submit your Co-op Contribution to the Regional Co-op Fund monthly, together with such statements or reports as may be required by us (or by the Regional Co-op Fund with our prior written approval). Monies in the Regional Co-op Fund may be spent for the purposes determined by a majority vote of the Regional Co-op Fund. We shall be a member of any Regional Co-op Fund and be entitled to attend and fully participate in Regional Co-op Fund meetings; however, we shall not have a vote unless we or our affiliates operate a Pump It Up Business in the area covered by the Regional Co-op Fund. Pump It Up Businesses operated by us and our affiliates in the area covered by the Regional Co-op Fund also will contribute to the Regional Co-op Fund on the same basis as comparable franchisees.
Source: Item 11 — FRANCHISORS'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 30–41)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a 'Co-op Contribution' is the amount established by a Regional Co-op Fund, from time to time, for its members. If a Regional Co-op Fund is established in the franchisee's Designated Market Area (DMA), the franchisee will automatically become a member.
The franchisee is required to submit their Co-op Contribution to the Regional Co-op Fund on a monthly basis, along with any statements or reports that Pump It Up or the Regional Co-op Fund (with Pump It Up's prior written approval) may require. The monies within the Regional Co-op Fund can be used for purposes determined by a majority vote of the Regional Co-op Fund members.
Pump It Up is also a member of any Regional Co-op Fund and can attend and participate in meetings, but they do not have a vote unless they or their affiliates operate a Pump It Up business in the area covered by the Regional Co-op Fund. Pump It Up businesses operated by the company and its affiliates also contribute to the Regional Co-op Fund on the same basis as comparable franchisees.