How long do I have to contribute to the Pump It Up Regional Co-op Fund after it commences operation?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Once a Regional Co-op Fund is established in a DMA in which the Franchised Business is located, you shall become a member of such Regional Co-op Fund and are required to contribute to the Regional Co-op Fund such amounts as determined by its members no later than 30 days after the date on which the Regional Co-op Fund commences operation.
You will not be required to be a member of more than one Regional Co-op Fund with respect to the Franchised Business.
You shall submit your Co-op contribution to the Regional Co-op Fund monthly, together with such statements or reports as may be required by us (or by the Regional Co-op Fund with our prior written approval).
Monies in the Regional Co-op Fund may be spent for the purposes determined by a majority vote of the Regional Co-op Fund.
- (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).
- (3) We shall be a member of all Regional Co-op Funds and are 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.
If the members of the Regional Co-op are unable or fail to determine the manner in which Regional Co-op Fund monies should be spent, we may assume this decision-making authority following 10 days' advance written notice to the members of the Regional Co-op Fund.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, once a Regional Co-op Fund is established in the DMA where your franchise is located, you are required to become a member and contribute to the fund. These contributions must be made no later than 30 days after the Regional Co-op Fund begins operation. You will not be required to be a member of more than one Regional Co-op Fund for each franchised business.
Your contributions to the Regional Co-op Fund must be submitted monthly, along with any statements or reports that Pump It Up (or the Regional Co-op Fund, with Pump It Up's prior written approval) may require. The funds collected can be used for purposes determined by a majority vote of the Regional Co-op Fund members. These funds are intended for administering regional marketing programs and developing standardized promotional materials for use by members in local advertising, subject to Pump It Up's approval.
Pump It Up also has the right to be a member of all Regional Co-op Funds and can attend and participate in meetings, although they only have a vote if they or their affiliates operate a Pump It Up business in the area covered by the fund. If the members of the Regional Co-op are unable to decide how the funds should be spent, Pump It Up may take over the decision-making authority after providing 10 days' advance written notice to the members.