What are Designated Vendors for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
of your operations.
PIU Vendors: Designated Vendors, Preferred National Vendors and Local Vendors
You are required to purchase all products, equipment, materials, supplies and services for the operation of the Pump It Up Business from us, our affiliates, or from our Designated Vendors, Preferred National Vendors or Local Vendors of your choosing (collectively, the "PIU Vendors"). We reserve the right to require you to purchase specific products, equipment, material, supplies and/or services from specific PIU Vendors. As of the date of this Disclosure Document, we and our affiliates are not approved or designated suppliers of any items.
We may develop certain proprietary or branded products, including inflatable devices, hardware, or software programs that will be prepared by or for us according to our proprietary designs (collectively, "Proprietary Products"). We also have developed standards and specifications for other products, materials and supplies which are incorporated in or used in providing services or the packaging and delivery of products authorized for sale at Pump It Up Businesses.
If specified for your Franchised Business, you must purchase the Proprietary Products or any other specified fixture, equipment, inventory, marketing materials, or supplies, only from us or a third party designated and licensed by us to prepare and sell such products ("Designated Vendors"). From time to time, we may modify the list of PIU Vendors.
We may choose, in our sole discretion, to designate any vendor as a "Preferred National Vendor" for meeting certain criteria established by us. We reserve the right to require that you use a Preferred National Vendor for the purchase of specified fixtures, equipment, inventory, marketing materials, or supplies. We may work with these Preferred National Vendors to establish prices, products, shipping costs, contracts, and other agreements as at our discretion.
Dependent on restrictions for purchasing products and services from our Designated Vendors and/or Preferred National Vendors, you may also purchase products, equipment, materials, supplies and services from a vendor in the geographic area near your Premises (a "Local Vendor"). All such purchases from any such Local Vendors should be for high quality products, equipment, materials, supplies and services, and should be up to our System Standards. We reserve the right to override your decision to use your selected Local Vendor if we determine, in our sole discretion, that the Local Vendor does not meet the high requirements of the System Standards.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees are required to purchase products, equipment, materials, supplies, and services from Pump It Up, its affiliates, or from its Designated Vendors, Preferred National Vendors, or Local Vendors (collectively known as "PIU Vendors"). Pump It Up retains the right to mandate the purchase of specific items from specific PIU Vendors. As of the date of the FDD, neither Pump It Up nor its affiliates are approved or designated suppliers of any items.
Designated Vendors are third parties specifically designated and licensed by Pump It Up to prepare and sell Proprietary Products or any other specified fixture, equipment, inventory, marketing materials, or supplies. These Proprietary Products include branded items like inflatable devices, hardware, or software programs designed by or for Pump It Up. The list of PIU Vendors is subject to change at any time. Pump It Up may also designate Preferred National Vendors based on criteria established by them and may require franchisees to use these vendors for specified purchases.
Pump It Up may negotiate purchasing arrangements with Designated Vendors and Preferred National Vendors to allow franchisees to benefit from economies of scale. Purchases from Designated Vendors and/or Preferred National Vendors are estimated to represent approximately 19% to 39% of the franchisee's total initial establishment purchases and 12% to 14% of total purchases for the continuing operation of the franchise. Franchisees also have the option to use Local Vendors, provided they meet Pump It Up's System Standards. Pump It Up reserves the right to override a franchisee's choice of Local Vendor if the vendor does not meet these standards.
Prospective franchisees should be aware that Pump It Up retains significant control over the supply chain and vendor selection. While the use of Local Vendors is permitted under certain conditions, Pump It Up has the final say on whether these vendors meet the required standards. This system ensures quality control and uniformity across all Pump It Up locations but also limits the franchisee's autonomy in sourcing products and services. Franchisees should inquire about the current list of Designated Vendors and the process for approving new vendors to fully understand their sourcing options and obligations.