Who has the discretion to use the Brand Fund monies for Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) We have sole discretion to use the Brand Fund, and the monies in the Brand Fund, for any purpose that we believe will enhance and protect the System and Marks and/or that we believe will improve and increase public recognition and perception of the System and Marks.
We will direct (or hire a third party to direct) all programs that the Brand Fund finances, and we will have sole control over the creative concepts, materials, and endorsements used and their geographic, market, and media placement, allocation and coverage (which may be national, regional or local).
You may be required to participate in advertising, marketing, social media, promotions, research and public relations programs and national cause marketing partner program events instituted by us or the Brand Fund.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up has sole discretion regarding the use of the Brand Fund. The document specifies that Pump It Up can use the monies in the Brand Fund for any purpose that it believes will enhance and protect the Pump It Up system and marks, or improve public recognition. This includes directing all programs financed by the Brand Fund and having sole control over creative concepts, materials, endorsements, and their placement.
This means that as a Pump It Up franchisee, you contribute a percentage of your gross revenues to the Brand Fund, but Pump It Up ultimately decides how those funds are spent. While the intention is to benefit the entire Pump It Up system, there's no guarantee that expenditures will directly benefit your specific location or be proportionate to your contributions. Pump It Up is not obligated to ensure that your franchise will directly benefit from the Brand Fund.
Pump It Up may use the Brand Fund for various programs, including advertising, marketing, social media, and public relations. They can also use the fund to cover administrative expenses, salaries, and travel expenses related to managing the Brand Fund. While the Brand Fund is not considered an asset of Pump It Up, they are expected to hold the contributions for the benefit of the system, although they do not owe any fiduciary obligation to franchisees for administering the fund.
As a franchisee, you are required to participate in marketing and advertising programs designated by Pump It Up or the Brand Fund, including social media programs. Pump It Up also reserves the right to set up social media accounts for your franchise prior to opening to assist with initial promotion. Franchisees must adhere to the guidelines set forth by Pump It Up regarding the use of these programs, as outlined in the manuals.