What are the two options for how Pump It Up collects brand fund fees from franchisees?

According to Pump It Up's 2025 Franchise Disclosure Document, the brand fund fees are collected either as a flat fee or as 2% of gross sales. These fees are collected weekly or monthly, as stipulated in the franchise agreement. These brand fund fees are sales-based and directly related to Pump It Up's performance obligations under the franchise agreement, and they are recognized as franchisee store-level sales occur.

This means that a prospective Pump It Up franchisee will need to budget for these ongoing brand fund fees, understanding that the specific amount and frequency of payment (weekly or monthly) will be detailed in their franchise agreement. The fees contribute to the Brand Fund, which Pump It Up uses for advertising, marketing, and public relations programs to enhance the brand.

It's important to note that while franchisees contribute to the Brand Fund, Pump It Up does not guarantee that any individual franchisee will directly benefit from the fund's expenditures in proportion to their contribution. Pump It Up has the right to modify or even suspend Brand Fund contributions, providing 30 days' written notice. Understanding these terms is crucial for franchisees to manage their financial expectations and assess the value of the brand support provided by Pump It Up.