What are PIU Vendors for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
of your operations.
PIU Vendors: Designated Vendors, Preferred National Vendors and Local Vendors
You are required to purchase all products, equipment, materials, supplies and services for the operation of the Pump It Up Business from us, our affiliates, or from our Designated Vendors, Preferred National Vendors or Local Vendors of your choosing (collectively, the "PIU Vendors"). We reserve the right to require you to purchase specific products, equipment, material, supplies and/or services from specific PIU Vendors. As of the date of this Disclosure Document, we and our affiliates are not approved or designated suppliers of any items.
We may develop certain proprietary or branded products, including inflatable devices, hardware, or software programs that will be prepared by or for us according to our proprietary designs (collectively, "Proprietary Products"). We also have developed standards and specifications for other products, materials and supplies which are incorporated in or used in providing services or the packaging and delivery of products authorized for sale at Pump It Up Businesses.
If specified for your Franchised Business, you must purchase the Proprietary Products or any other specified fixture, equipment, inventory, marketing materials, or supplies, only from us or a third party designated and licensed by us to prepare and sell such products ("Designated Vendors"). From time to time, we may modify the list of PIU Vendors.
We may choose, in our sole discretion, to designate any vendor as a "Preferred National Vendor" for meeting certain criteria established by us. We reserve the right to require that you use a Preferred National Vendor for the purchase of specified fixtures, equipment, inventory, marketing materials, or supplies. We may work with these Preferred National Vendors to establish prices, products, shipping costs, contracts, and other agreements as at our discretion.
Dependent on restrictions for purchasing products and services from our Designated Vendors and/or Preferred National Vendors, you may also purchase products, equipment, materials, supplies and services from a vendor in the geographic area near your Premises (a "Local Vendor"). All such purchases from any such Local Vendors should be for high quality products, equipment, materials, supplies and services, and should be up to our System Standards. We reserve the right to override your decision to use your selected Local Vendor if we determine, in our sole discretion, that the Local Vendor does not meet the high requirements of the System Standards.
If you propose to purchase any products, equipment, materials, supplies or services that you are not required to purchase from us or an affiliate of ours, all such products, equipment, supplies or services must be fully compliant with our System Standards. If such purchases will be from a vendor that we have not previously worked with, we reserve the right to require you or the vendor itself submit to us a written request for our review of that vendor and its products, equipment, materials, or services to confirm whether such are compliant with our System Standards.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, PIU Vendors are the approved sources from which franchisees must purchase products, equipment, materials, supplies, and services. These vendors fall into three categories: Designated Vendors, Preferred National Vendors, and Local Vendors. Pump It Up retains the right to require franchisees to purchase specific items from specific PIU Vendors. As of the date of the FDD, neither Pump It Up nor its affiliates are approved or designated suppliers of any items.
Designated Vendors are third parties licensed by Pump It Up to prepare and sell proprietary or branded products, including inflatable devices, hardware, or software programs. Preferred National Vendors are those that Pump It Up has designated as meeting certain criteria, and the franchisor may require franchisees to use these vendors for specified items. Pump It Up may also negotiate pricing and other agreements with Preferred National Vendors. Local Vendors are vendors in the geographic area near the franchisee's premises, from whom franchisees may purchase products and services, provided they meet Pump It Up's System Standards. Pump It Up reserves the right to override a franchisee's choice of Local Vendor if they do not meet these standards.
The FDD also states that purchases from Designated Vendors and/or Preferred National Vendors are estimated to represent approximately 19% to 39% of a new Pump It Up franchisee's total purchases during establishment and 12% to 14% of total purchases during ongoing operations. Pump It Up may receive rebates from Designated Vendors and/or Preferred National Vendors, which may be credited to the Brand Fund. Additionally, Pump It Up and its affiliates may receive payments from vendors, including PIU Vendors, for their dealings with franchisees, which they can use without restriction.
Prospective franchisees should carefully consider these vendor restrictions and the potential costs associated with purchasing from approved vendors. It is important to understand the System Standards and how they may impact the choice of Local Vendors. Franchisees should also inquire about the criteria for Designated and Preferred National Vendors and any potential conflicts of interest or benefits that Pump It Up may receive from these vendor relationships.