Does Pump It Up have the right to be a member of all Regional Co-op Funds?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
egional marketing programs and developing, subject to our approval, standardized promotional materials for use by its members in local advertising. All advertising and marketing shall be submitted to us prior to first use as provided in Section 9.C.(3), and shall adhere to the standards set forth in Section 9.C.(4).
- (3) We shall be a member of all Regional Co-op Funds and are entitled to attend and fully participate in Regional Co-op Fund meetings; however, we shall not have a vote unless we or our affiliates operate a Pump It Up Business in the area covered by the Regional Co-op Fund. If the members of the Regional Co-op are unable or fail to determine the manner in which Regional Co-op Fund monies should be spent, we may assume this decision-making authority following 10 days' advance written notice to the members of the Regional Co-op Fund.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the franchisor, or their designee, is indeed a member of all Regional Co-op Funds. They are entitled to attend and fully participate in Regional Co-op Fund meetings. However, Pump It Up does not have a vote unless they or their affiliates operate a Pump It Up Business in the area covered by the Regional Co-op Fund.
Furthermore, the Regional Co-op Fund must be organized and governed in a manner approved in advance and in writing by Pump It Up. The company may also prepare bylaws for the fund and require it to incorporate. Once a Regional Co-op Fund is established in a DMA (Designated Market Area) where the franchised business is located, the franchisee is required to become a member and contribute to the fund as determined by its members, no later than 30 days after the fund commences operation. A franchisee will not be required to be a member of more than one Regional Co-op Fund for their franchised business.
These stipulations ensure that Pump It Up maintains oversight and involvement in regional advertising efforts, while also allowing franchisees to participate and contribute to marketing strategies in their specific areas. The structure aims to balance corporate influence with local franchisee input, although the franchisor's approval is required for key aspects of the fund's operation and marketing materials.