What is Pump It Up's requirement for franchisees to develop a marketing plan?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Local Store Marketing.
- (1) Attracting customers for your Franchised Business will require you to make consistent marketing efforts in your community through various methods, including media advertising, electronic advertising, direct mail advertising, and display and use of in-store promotional materials. As a result, you should develop, on an annual basis, a marketing plan for the Franchised Business and your Protected Area ("Marketing Plan"). You should comply with all requirements regarding the Marketing Plan, including use of appropriate advertising and marketing materials, placement and purchase of advertising and marketing materials and media, participation in and use of approved online social media networks and tools, and compliance with all recommended promotional recommendations and guidelines. 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. We have the right to review all documents applicable to the marketing of the Franchised Business. We reserve the right to audit your Franchised Business pursuant to Sections 8(d)(1) and 8(d)(2) above if we believe, in our sole discretion, that you have not expended an adequate amount of money on Local Store Marketing.
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 develop a marketing plan on an annual basis for their franchised business and protected area. This marketing plan should include the use of appropriate advertising and marketing materials, the placement and purchase of advertising and marketing materials and media, participation in approved online social media networks and tools, and compliance with all recommended promotional recommendations and guidelines.
After opening their Pump It Up franchise, franchisees are expected to spend on local store marketing the greater of $12,000 or 2% of the gross revenues of the franchised business. Pump It Up has the right to review all documents applicable to the marketing of the franchised business and reserves the right to audit a franchise if they believe an adequate amount of money has not been spent on local store marketing.
If an audit reveals that a franchisee is not contributing the required amount, they may be required to repay Pump It Up the costs and expenses incurred in auditing the franchised business. Additionally, if a franchisee fails to expend the expected amount, they may be required to contribute to the Brand Fund any amounts that should have been expended to reach the local advertising requirement.