Can Pump It Up require franchisees to participate in promotions instituted by the Brand Fund?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You may be required to participate in advertising, marketing, social media, promotions, research and public relations programs and national cause marketing partner program events instituted by us or the Brand Fund. Among the programs, concepts, and expenditures for which we may utilize the Brand Fund monies are: (a) creative development and production of print ads, electronic media, commercials, point of purchase materials, direct mail pieces, door hangers, and other advertising and promotional materials; (b) creative development, preparation, production and placement of video, audio, and written materials and electronic media; (c) media placement and buying, including all associated expenses and fees; (d) administering regional and multi-regional marketing and advertising programs; (e) market research and customer satisfaction surveys, including the use of secret shoppers; (f) the development and production of premium items, giveaways, promotions, contests, public relations events, and charitable or nonprofit events; (g) creative development of new program offerings for Pump It Up Businesses; (h) creative development of signage, posters, and individual Pump It Up Business décor items including wall graphics; (i) recognition and awards events and programs; (j) System recognition events, including periodic national and regional conventions and meetings; (k) website, extranet and/or intranet development and maintenance; (l) development, implementation, and maintenance of an electronic commerce website and reservation system
Source: Item 11 — FRANCHISORS'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 30–41)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees may be required to participate in advertising, marketing, social media, promotions, research, public relations programs, and national cause marketing partner program events instituted by Pump It Up or the Brand Fund. This means that as a Pump It Up franchisee, you might not have a choice about participating in certain promotional activities.
The Brand Fund is used for various programs, including creating advertising materials, media placement, market research, developing promotional items, and managing social media. Pump It Up has sole discretion over how the Brand Fund is used to enhance and protect the Pump It Up system and marks.
Franchisees are expected to contribute to the Brand Fund; currently, the monthly contribution is 2% of gross revenues, and Pump It Up may increase this to a maximum of 3%. In addition to the Brand Fund contribution, franchisees are also expected to spend a specified amount on local store marketing, which is currently the greater of 2% of annual gross revenues or $12,000 annually. Pump It Up may also require franchisees to participate in company marketing initiatives, including using specific social media platforms.
Pump It Up may establish a Regional Co-op Fund in a Designated Market Area, and franchisees located in that area would automatically become members and contribute to the fund. These contributions are separate from the Brand Fund and local store marketing expenditures. The franchisor can reduce or suspend Brand Fund contributions and operations with 30 days' notice and may terminate the Brand Fund altogether.