Does Pump It Up currently have any Regional Co-op Funds established?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in our sole discretion, establish a regional advertising cooperative ("Regional Co-op Fund") in any Designated Market Area ("DMA"). As of the date of this disclosure document, we do not
have any Regional Co-op Funds. If established, the Regional Co-op Fund shall be organized and governed in a form and manner and shall commence operations on a specified date, approved in advance by us in writing. We may choose to prepare bylaws to be used by the Regional Co-op Fund and may require the Regional Co-op Fund to incorporate. Once a Regional Co-op Fund is established in a DMA in which your Franchised Business is located, you shall automatically become a member of such Regional Co-op Fund upon commencement of operation of the Franchised Business if the Regional Co-op Fund is in existence at that time, or no later than 30 days after the date on which the Regional Co-op Fund commences operation. In no event shall you be required to be a member of more than one Regional Co-op Fund with respect to the Franchised Business. 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, Pump It Up does not currently have any Regional Co-op Funds established. However, Pump It Up retains the discretion to establish these funds in any Designated Market Area (DMA) in the future.
If a Regional Co-op Fund is established in a DMA where a franchisee's Pump It Up business is located, the franchisee will automatically become a member. Franchisees are only required to be a member of one Regional Co-op Fund. As a member, the franchisee must contribute a set amount determined by the Regional Co-op Fund, known as the "Co-op Contribution", on a monthly basis, along with any required statements or reports.
The funds collected by a Regional Co-op Fund can be used for purposes determined by a majority vote of the fund's members. Pump It Up is also a member of any Regional Co-op Fund and can attend and participate in meetings, but it does not have a vote unless it or its affiliates operate a Pump It Up Business in the area covered by the fund. Pump It Up businesses operated by Pump It Up and its affiliates also contribute to the Regional Co-op Fund on the same basis as comparable franchisees.