What is the requirement for a Pump It Up franchisee to spend and/or contribute for advertising?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
As of the Effective Date, you must contribute 2% of the Gross Revenues of the Franchised Business per month to the Brand Fund.
We may increase your monthly contribution to the Brand Fund to an amount not to exceed 3% of the Gross Revenues of the Franchised Business, and you must pay the Brand Fund contribution in the same manner as the Royalty.
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.
If our audit reveals that you are not contributing, or have not contributed previously, the requisite amount, you may be required to repay us the costs and expenses incurred in auditing your Franchised Business.
In addition, if you fail to expend the expected amount, then you may be required to contribute to the Brand Fund any amounts that you should have expended to reach the local advertising requirement.
- (5) You must actively participate in all marketing and advertising programs designated by us or the Brand Fund including social media programs (e.g., Facebook, X (Twitter), Instagram, and any other platforms we identify or as are developed from time to time) and comply with all guidelines set forth by us regarding the use of these programs as set forth in the Manuals.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees are required to contribute to both a Brand Fund and Local Store Marketing. Franchisees must contribute 2% of their Gross Revenues monthly to the Brand Fund. Pump It Up has the right to increase this contribution up to 3% of Gross Revenues. The Brand Fund is used at Pump It Up's discretion to enhance and protect the System and Marks.
In addition to the Brand Fund, Pump It Up franchisees are expected to spend on Local Store Marketing in their Protected Area. This spending must be the greater of $12,000 or 2% of the Gross Revenues of the Franchised Business annually. This amount may be modified by Pump It Up. Franchisees must begin Local Store Marketing when they open their business.
Pump It Up has the right to review all marketing documents and audit the franchisee's business to ensure compliance with Local Store Marketing expenditure requirements. If a franchisee fails to meet the required spending, they may be required to repay the costs of the audit and contribute the shortfall to the Brand Fund. Franchisees must also actively participate in marketing and advertising programs designated by Pump It Up or the Brand Fund, including social media programs, and adhere to all guidelines set forth in the manuals.