Under what circumstances might Pump It Up establish a Regional Co-op Fund?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
required, such participation may require you, at a minimum, to display/utilize related marketing materials at your Pump It Up Franchised Business, to advertise the National Promotions with through email and other medium, and to promote all National Promotions on local website(s) and through social media platforms.
D. Regional Co-op Fund.
- (1) We may, in our sole discretion, establish a regional advertising cooperative ("Regional Co-op Fund") in any DMA. The Regional Co-op Fund shall be organized and governed in a form and manner and shall commence operations on a specified date, approved in advance by us in writing. If we choose to do so, we may prepare bylaws to be used by the Regional Co-op Fund and may require the Regional Co-op Fund to incorporate. Once a Regional Co-op Fund is established in a DMA in which the Franchised Business is located, you shall become a member of such Regional Co-op Fund and are required to contribute to the Regional Co-op Fund such amounts as determined by its members no later than 30 days after the date on which the Regional Co-op Fund commences operation. You will not be required to be a member of more than one Regional Co-op Fund with respect to the Franchised Business. You shall submit your Co-op contribution to the Regional Co-op Fund monthly, together with such statements or reports as may be required by us (or by the Regional Co-op Fund with our prior written approval). Monies in the Regional Co-op Fund may be spent for the purposes determined by a majority vote of the Regional Co-op Fund.
- (2) Each Regional Co-op Fund shall be organized, if at all, for the exclusive purpose of administering regional 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.
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 may, at its sole discretion, establish a regional advertising cooperative, referred to as a Regional Co-op Fund, in any Designated Market Area (DMA). The Regional Co-op Fund is designed to administer regional marketing programs and develop standardized promotional materials for use by its members in local advertising, subject to Pump It Up's approval.
If Pump It Up establishes a Regional Co-op Fund in the DMA where a franchisee's business is located, the franchisee is required to become a member and contribute to the fund. The amount of the contribution is determined by the members of the Regional Co-op Fund. Franchisees must submit their co-op contributions monthly, along with any statements or reports required by Pump It Up or the Regional Co-op Fund, with Pump It Up's prior written approval.
Pump It Up is also a member of all Regional Co-op Funds and can attend and participate in meetings, although it only has a vote if it or its affiliates operate a Pump It Up Business in the area covered by the fund. If the members of the Regional Co-op are unable to decide how to spend the fund's money, Pump It Up may take over the decision-making authority after giving the members 10 days' advance written notice. Pump It Up also has the right to terminate any Regional Co-op Fund and, upon termination, all monies in the fund must be used for advertising and promotional purposes for Pump It Up Businesses in the DMA.