Can Pump It Up restart a Regional Co-op Fund after it has been terminated?

According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up or its designee has the right to terminate and subsequently restart any Regional Co-op Fund. Upon termination of a Regional Co-op Fund, all monies in that fund must be used for advertising and/or promotional purposes for Pump It Up businesses within the designated market area (DMA).

This clause gives Pump It Up significant control over the Regional Co-op Funds. While franchisees contribute to these funds, Pump It Up ultimately decides whether to continue, terminate, or reinstate them. This could be beneficial if Pump It Up sees a need to revitalize marketing efforts in a region. However, it also means franchisees have less direct control over how their contributions are spent in the long term.

Prospective franchisees should consider this when evaluating the level of autonomy they desire in marketing decisions. While the funds are intended for regional promotion, the franchisor's ability to restart a terminated fund suggests that the initial reasons for termination may be re-evaluated, potentially leading to renewed marketing efforts in the area. Franchisees should inquire about the typical circumstances under which a Regional Co-op Fund might be terminated and subsequently restarted to better understand the potential impact on their business.