Does Pump It Up have the right to establish a regional advertising association?

According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up retains the right to establish a regional advertising association that includes a franchisee's protected area. If Pump It Up establishes such an association, franchisees may be required to pay up to 1% of their gross revenue to that advertising association. The exact amount will be determined by the advertising association itself. This payment is in addition to local store marketing expenditures and contributions to the brand fund.

This means that a Pump It Up franchisee could face an additional advertising expense on top of the existing 2-3% contribution to the Brand Fund and the local store marketing requirement, which is the greater of 2% of gross revenues or $12,000 annually. The establishment of a regional advertising association and the associated fees are not guaranteed, but the possibility exists and should be considered by potential franchisees.

It is important for prospective franchisees to inquire about the likelihood of a regional advertising association being formed in their area and how that might impact their overall advertising budget. Understanding the potential costs associated with such an association is crucial for accurate financial planning. Franchisees should also clarify how the funds collected by the regional advertising association will be used and what benefits they can expect to receive in return.