Under what circumstances does Pump It Up have a vote in a Regional Co-op Fund?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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, Pump It Up has a vote in a Regional Co-op Fund if they or their affiliates operate a Pump It Up Business in the area covered by the Regional Co-op Fund. Pump It Up is entitled to attend and fully participate in Regional Co-op Fund meetings. However, without operating a Pump It Up Business in the area, they do not have a vote.
This means that if Pump It Up, as the franchisor, also owns and operates a franchise location within the same designated market area (DMA) as its franchisees, it gets a say in how the regional marketing funds are spent. This ensures that Pump It Up's corporate-owned locations have a voice in regional advertising strategies, potentially aligning the interests of the franchisor and franchisees in the area.
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, Pump It Up may assume this decision-making authority following 10 days' advance written notice to the members of the Regional Co-op Fund. This ensures that the funds are used effectively for regional marketing programs and standardized promotional materials.