Is Pump It Up required to segregate Brand Fund monies from its other monies?

According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up is not required to segregate Brand Fund monies from its other monies. While Pump It Up will account for the Brand Fund separately from its other funds, it is not required to keep the money itself separate. Pump It Up also states that it will not use the Brand Fund for any of its general operating expenses.

This means that while the Brand Fund's financials will be tracked separately, the actual money can be co-mingled with Pump It Up's general funds. This is a potential risk for franchisees, as it could make it more difficult to ensure that the Brand Fund is being used appropriately. However, Pump It Up does state that it will not use the Brand Fund for its general operating expenses, which provides some reassurance.

It is common in the franchise industry for franchisors to have some level of discretion over the Brand Fund, but requirements regarding segregation vary. Prospective franchisees should carefully consider the implications of this arrangement and seek clarification from Pump It Up regarding the specific safeguards in place to protect the Brand Fund.