Can Pump It Up terminate a Regional Co-op Fund?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
We or our designee shall have the right to terminate (and subsequently restart) any Regional Co-op Fund.
Upon termination, all monies in that Regional Co-op Fund shall be spent for advertising and/or promotional purposes for Pump It Up Businesses in the subject DMA.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up or its designee has the right to terminate any Regional Co-op Fund and subsequently restart it. If Pump It Up terminates a Regional Co-op Fund, all the money in the fund must be used for advertising and promotional purposes for Pump It Up businesses within the relevant Designated Market Area (DMA).
This means that Pump It Up retains significant control over the Regional Co-op Funds. While franchisees participate in these funds, Pump It Up ultimately decides whether to continue or end them. This could impact a franchisee's local marketing strategies and how their contributions are used.
For a prospective franchisee, this highlights the importance of understanding Pump It Up's marketing strategies and how the Regional Co-op Funds operate. It would be prudent to inquire about the history of these funds, how often they have been terminated or restarted, and what factors influence Pump It Up's decisions regarding their management. This information can help a franchisee anticipate potential changes in regional marketing efforts and plan accordingly.