What is the exclusive purpose for which a Pump It Up Regional Co-op Fund is organized?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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).
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, a Regional Co-op Fund, if established, is exclusively for administering regional marketing programs and developing standardized promotional materials for its members' local advertising efforts. However, all advertising and marketing materials are subject to Pump It Up's approval before use and must adhere to their standards.
Pump It Up retains significant control over the Regional Co-op Fund. The company is a member of all Regional Co-op Funds and can participate in meetings, although it only gets a vote if it operates a Pump It Up Business in the area. If the members can't decide how to spend the funds, Pump It Up can take over the decision-making after providing a 10-day written notice.
Pump It Up also has the authority to grant exemptions from Regional Co-op Fund membership to franchisees and can terminate and restart any Regional Co-op Fund. If a fund is terminated, the money must be used for advertising and promotional purposes for Pump It Up Businesses in the relevant Designated Market Area (DMA). This structure ensures that while franchisees contribute to regional marketing efforts, Pump It Up maintains oversight and control to ensure brand consistency and effectiveness.