Who determines how the monies in the Pump It Up Regional Co-op Fund are spent?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the monies in the Regional Co-op Fund may be spent for the purposes determined by a majority vote of the Regional Co-op Fund members. Pump It Up will be a member of any Regional Co-op Fund and is entitled to attend and fully participate in Regional Co-op Fund meetings. However, Pump It Up will 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 Pump It Up and its affiliates in the area covered by the Regional Co-op Fund will also contribute to the Regional Co-op Fund on the same basis as comparable franchisees.
This means that if a Regional Co-op Fund is established, franchisees within that region have a direct say in how the co-op's funds are spent on advertising and marketing initiatives. Each franchisee's vote carries equal weight in deciding the fund's expenditures, allowing for collaborative decision-making. However, Pump It Up retains the right to participate in meetings and contribute to the discussions, ensuring that the brand's overall interests are considered.
This structure aims to balance local control with the franchisor's brand standards and marketing expertise. Franchisees benefit from a system where they can influence regional advertising strategies, while Pump It Up maintains oversight to protect the brand's integrity. However, as of the date of the 2025 Franchise Disclosure Document, Pump It Up does not have any Regional Co-op Funds.