factual

What sections of the Pump It Up Franchise Agreement relate to advertising?

Pump_It_Up Franchise · 2025 FDD

Answer from 2025 FDD Document

. (Franchise Agreement, Section 11.C.)

Our Obligations After Opening

After you open your Franchised Business, we will:

  • (1) Collect, administer and spend, for advertising and promotional purposes, monies paid by franchised and company-owned Pump It Up Businesses into the Brand Fund, while the Brand Fund is in existence. (Franchise Agreement, Section 9.B.)
  • (2) Provide marketing and promotional (brand) guidelines for local store marketing, and provide samples of advertising, marketing, and promotional formats and materials. (Franchise Agreement, Section 9.C.)
  • (3) We may change or modify the System, including modifications to the Manuals, the System and the System Standards. Changes to the System and/or System Standards may be communicated to you in conjunction with amendments to the Manuals or through regular, routine or specific communications delivered by us. Our System Standards may regulate (to the extent allowed by law) maximum, minimum and other pricing requirements for the services and products your Pump It Up Business sells. (Franchise Agreement, Sections 10.A and 12.A.)
  • (4) Provide additional training for you (or your Operating Principal) and your managerial personnel, which may be conducted in person or via virtual means. (Franchise Agreement, Section 11.C.)
  • (5) Provide ongoing recommendations and consultation to you regarding the operation of the Franchised Business through the Manuals, bulletins or other written materials, electronic media, meetings,

seminars, conferences, and telephone or in person conversations at our office or the Franchised Business or another designated location we specify, including via virtual means. (Franchise Agreement, Section 11.F.)

  • (6) Provide you with a list of PIU Vendors. (Franchise Agreement, Section 12.D.)
  • (7) Conduct inspections of the Franchised Business as we deem appropriate and necessary. (Franchise Agreement, Section 12.F.)

ADVERTISING

The Brand Fund

Pump It Up Businesses have a distinct culture, and the image of the System and Pump It Up Businesses is an important element of the System. We have established an advertising and marketing fund ("Brand Fund") for the enhancement and protection of the System and the Marks, and for the development of advertising, marketing, and public relations programs and materials as we deem appropriate.

Currently, you must make a monthly contribution to the Brand Fund in an amount equal to 2% of your Gross Revenues from the Franchised Business. We may choose to increase this contribution to an amount not to exceed 3% of the Gross Revenues of the Franchised Business. Pump It Up Businesses operated by us and our affiliates also will contribute to the Brand Fund on the same basis as comparable franchisees. From time to time, we or our vendors may deposit into the Brand Fund any rebates or similar allowances paid to us by our vendors, although we have no obligation to do so.

During 2024, Brand Fund income was spent in the following approximate amounts: 26.9% on Multi-Channel Marketing Execution; 17.1% on POpS & Systems Development; 26.6% on Systems Hosting & Licensing; 19.1% on Marketing Data Analysis, Strategy & Consulting; 5.6% on Product Development; and 4.7% on Brand Fund Administration.

We have sole discretion to use the Brand Fund, and the monies in the Brand Fund, for any purpose that we believe will enhance and protect the System and Marks and will improve and increase public recognition and perception of the System and Marks. We will direct (or hire a third party to direct) all programs that the Brand Fund finances, with sole control over the creative concepts, materials, and endorsements used and their geographic, market, and media placement, allocation and coverage (which may be national, regional or local). Our in-house marketing department may prepare or work with advertising agencies to prepare the advertising materials for the Brand Fund.

You may be required to participate in advertising, marketing, social media, promotions, research and public relations programs and national cause marketing partner program events instituted by us or the Brand Fund. Among the programs, concepts, and expenditures for which we may utilize the Brand Fund monies are: (a) creative development and production of print ads, electronic media, commercials, point of purchase materials, direct mail pieces, door hangers, and other advertising and promotional materials; (b) creative development, preparation, production and placement of video, audio, and written materials and electronic media; (c) media placement and buying, including all associated expenses and fees; (d) administering regional and multi-regional marketing and advertising programs; (e) market research and customer satisfaction surveys, including the use of secret shoppers; (f) the development and production of premium items, giveaways, promotions, contests, public relations events, and charitable or nonprofit events; (g) creative development of new program offerings for Pump It Up Businesses; (h) creative development of signage, posters, and individual Pump It Up Business décor items including wall graphics;

Source: Item 9 — FRANCHISEE OBLIGATIONS (FDD pages 29–30)

What This Means (2025 FDD)

According to the 2025 Pump It Up Franchise Disclosure Document, several sections of the Franchise Agreement pertain to advertising. Specifically, Section 9.B discusses the Brand Fund, into which Pump It Up franchisees pay monies that are then used for advertising and promotional purposes. Section 9.C requires Pump It Up to provide marketing and promotional guidelines for local store marketing, including samples of advertising and promotional materials. Section 12.A relates to System Standards, which may regulate marketing techniques and written promotional materials.

Pump It Up also has the right to set up social media accounts for franchisees within 60 days prior to opening to assist with initial promotion. These accounts may include platforms like Facebook, X (Twitter), Yelp, Instagram, TikTok, and Snapchat. Pump It Up requires franchisees to identify them as the primary administrator and provide primary administration rights for any social media or digital marketing accounts used in conjunction with the franchise, while Pump It Up will grant the franchisee administrator rights to any social media account that they set up.

Pump It Up retains the right to organize and schedule national promotions, which franchisees may be required to participate in. These National Promotions can include charity events, price promotions, and business segment drivers. The Brand Fund is used for various advertising and promotional activities, including the development and production of print ads, electronic media, commercials, point of purchase materials, direct mail pieces, video, audio, and written materials, media placement, market research, premium items, giveaways, promotions, contests, public relations events, signage, website development, and social media management.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.