What happens to the monies in a Pump It Up Regional Co-op Fund upon termination?

According to Pump It Up's 2025 Franchise Disclosure Document, if a Regional Co-op Fund is terminated, all the money in that fund must be used for advertising and promotional purposes for Pump It Up businesses within the relevant Designated Market Area (DMA). This ensures that even upon termination of the co-op, the accumulated funds continue to benefit the brand and its franchisees in the region.

This provision offers some assurance to franchisees contributing to the Regional Co-op Fund that their contributions will be used for marketing purposes, even if the co-op is discontinued. It prevents the funds from being used for other purposes or reverting back to the franchisor. This is a fairly standard practice in franchising, as advertising funds are typically restricted for marketing-related activities.

However, the FDD does not specify who decides how the money is spent or how the advertising and promotional activities are selected after the co-op's termination. It also does not detail the process for winding down the Regional Co-op Fund or how franchisees will be informed about the final use of the funds. A prospective franchisee should seek clarification from Pump It Up regarding the specific procedures that will be followed to ensure transparency and accountability in the use of these funds upon termination of the Regional Co-op Fund.