Can Pump It Up require franchisees to use a Preferred National Vendor?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) We may, in our sole discretion, choose to designate (or remove) any vendor as a "Preferred National Vendor".
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, contacts, and other agreements as at our discretion.
- (5) Dependent on restrictions we may identify 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 high quality and up to our System Standards.
We reserve the right to override your decision to use a Local Vendor if we determine, in our sole discretion, that the Local Vendor does not meet the high expectations of the System Standards.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up reserves the right to mandate that franchisees purchase specified items from a designated Preferred National Vendor. These items can include fixtures, equipment, inventory, marketing materials, or supplies. Pump It Up may collaborate with these vendors to determine pricing, products, shipping costs, and other agreement terms.
Pump It Up also allows franchisees to purchase products, equipment, materials, supplies, and services from local vendors, provided these purchases meet the System Standards. However, Pump It Up retains the authority to override a franchisee's choice of a local vendor if the vendor does not meet the required System Standards.
This policy gives Pump It Up significant control over the supply chain and branding consistency within its franchise system. While franchisees have some flexibility to use local vendors, Pump It Up can ultimately require the use of specific vendors. For a prospective franchisee, this means they may have limited choice in sourcing certain products and services, potentially impacting costs and operational logistics. It is important to understand which items must be sourced from Preferred National Vendors and what recourse a franchisee has if they find a local vendor that meets or exceeds the System Standards at a more competitive price.