conditional

Under what condition does Pump It Up have voting rights in a Regional Co-op Fund?

Pump_It_Up Franchise · 2025 FDD

Answer 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.

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's voting rights within a Regional Co-op Fund are conditional. Pump It Up is entitled to attend and participate in Regional Co-op Fund meetings. However, Pump It Up only has voting rights if Pump It Up or its affiliates operate a Pump It Up business in the area covered by the Regional Co-op Fund.

This conditionality means that a franchisee's voice in the Regional Co-op Fund could be influenced by whether Pump It Up itself has a vested interest (through its own operating locations) in the same geographic area. If Pump It Up does operate a location in the area, it gets a vote; if not, it can attend and participate but not vote. This could create situations where the interests of Pump It Up-owned locations are prioritized over those of independently owned franchises.

It is important for prospective franchisees to understand this dynamic, as the Regional Co-op Fund is intended for regional marketing programs and standardized promotional materials. Franchisees should consider how Pump It Up's voting rights might affect the allocation of these funds and the types of marketing initiatives pursued in their region. Franchisees should also inquire about the number of company-owned locations versus franchise locations within their Regional Co-op Fund's area to better assess the potential influence of Pump It Up's vote.

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.