What is the deadline for Pump It Up to pay the amount due to the Company's member?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Once a Regional Co-op Fund is established in a DMA in which the Franchised Business is located, you shall become a member of such Regional Co-op Fund and are required to contribute to the Regional Co-op Fund such amounts as determined by its members no later than 30 days after the date on which the Regional Co-op Fund commences operation.
You will not be required to be a member of more than one Regional Co-op Fund with respect to the Franchised Business.
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.
- (2) Each Regional Co-op Fund shall be organized, if at all, for the exclusive purpose of administering regional marketing programs and developing, subject to our approval, standardized promotional materials for use by its members in local advertising.
All advertising and marketing shall be submitted to us prior to first use as provided in Section 9.C.(3), and shall adhere to the standards set forth in Section 9.C.(4).
- (3) We shall be a member of all Regional Co-op Funds and are 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.
If the members of the Regional Co-op are unable or fail to determine the manner in which Regional Co-op Fund monies should be spent, we may assume this decision-making authority following 10 days' advance written notice to the members of the Regional Co-op Fund.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up FDD, if a Regional Co-op Fund is established in the DMA where a franchise is located, the franchisee is required to contribute to the fund. The deadline for this contribution is no later than 30 days after the date on which the Regional Co-op Fund commences operation. Franchisees must submit their Co-op contribution monthly, along with any statements or reports required by Pump It Up or the Regional Co-op Fund, given Pump It Up's prior written approval.
Pump It Up retains certain rights and involvement in the Regional Co-op Fund. The company is a member of all Regional Co-op Funds and can attend and participate in meetings, although it does not have a vote unless Pump It Up or its affiliates operate a Pump It Up Business in the area covered by the fund. Pump It Up may also prepare bylaws for the fund and may require the fund to incorporate. Furthermore, all advertising and marketing must be submitted to Pump It Up prior to its first use and must adhere to the standards set forth in the agreement.
If the members of the Regional Co-op are unable to decide how the funds should be spent, Pump It Up can assume decision-making authority after providing 10 days' advance written notice to the members. Pump It Up also has the right to grant exemptions from the requirement of membership in any Regional Co-op Fund and can terminate or restart any Regional Co-op Fund. Upon termination of a Regional Co-op Fund, all monies in the fund must be used for advertising and promotional purposes for Pump It Up Businesses in the relevant DMA.