What is a 'Marketing Plan' in the context of a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
rand Fund. If we terminate the Brand Fund, we will spend all monies in the fund for advertising and/or promotional purposes or distribute all unspent monies to our franchisees, and to us and our affiliates, in proportion to their, and our, respective Brand Fund contributions during the preceding 12-month period.
C. Local Store Marketing.
- (1) Attracting customers for your Franchised Business will require you to make consistent marketing efforts in your community through various methods, including media advertising, electronic advertising, direct mail advertising, and display and use of in-store promotional materials. As a result, you should develop, on an annual basis, a marketing plan for the Franchised Business and your Protected Area ("Marketing Plan"). You should comply with all requirements regarding the Marketing Plan, including use of appropriate advertising and marketing materials, placement and purchase of advertising and marketing materials and media, participation in and use of approved online social media networks and tools, and compliance with all recommended promotional recommendations and guidelines. After opening your Franchised Business, in addition to your Brand Fund contribution, you are expected to spend for advertising and marketing in your Protected Area ("Local Store Marketing") the greater of $12,000 or 2% of the Gross Revenues of the Franchised Business (which amount may be modified by us from time to time in accordance with Section 9.B.). You must begin conducting Local Store Marketing no later than when you open the Franchised Business. We have the right to review all documents applicable to the marketing of the Franchised Business. We reserve the right to audit your Franchised Business pursuant to Sections 8(d)(1) and 8(d)(2) above if we believe, in our sole discretion, that you have not expended an adequate amount of money on Local Store Marketing. If our audit reveals that you are not contributing, or have not contributed previously, the re
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, a 'Marketing Plan' refers to the strategy a franchisee develops annually to attract customers within their protected area. This plan involves consistent marketing efforts through various methods such as media advertising, electronic advertising, direct mail, and in-store promotional materials. Pump It Up requires franchisees to comply with all guidelines related to the Marketing Plan, including using appropriate advertising materials, purchasing advertising, participating in approved online social media networks, and following recommended promotional guidelines.
Pump It Up expects franchisees to spend a minimum amount on local store marketing, defined as the greater of $12,000 or 2% of the franchise's gross revenues. This expenditure is in addition to the Brand Fund contribution. Franchisees must start local store marketing when they open their Pump It Up business. The franchisor retains the right to review all marketing documents and audit the franchise if they believe an adequate amount is not being spent on local store marketing.
If an audit reveals that the franchisee has not spent the required amount on local store marketing, Pump It Up may require the franchisee to repay the costs incurred for the audit. Additionally, the franchisee may be required to contribute the deficit to the Brand Fund. This ensures that all franchisees are contributing to local marketing efforts as expected by Pump It Up.