Does Pump It Up's approval of a site constitute a warranty of its suitability?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that our approval of a site does not constitute a representation or warranty of any kind, express or implied, of the site's suitability for a Pump It Up Business or for any other purpose.
Our approval indicates only that we believe that the site meets our then-current
site selection criteria. Applying criteria that have appeared effective with other sites might not accurately reflect the potential for all sites (including your site), and demographic and/or other factors included in or excluded from our criteria could change, altering the potential viability of a site. The uncertainty and instability of these criteria are beyond our control, and we are not responsible if a site we approve fails to meet your expectations. You acknowledge and agree that: (a) your submission of a proposed site for our acceptance is based on your own independent investigation of the site's suitability for the Franchised Business; and (b) our site-selection assistance is primarily for our benefit to assure us that we will have a minimally acceptable site upon the expiration or termination of this Agreement.
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 approval of a site for a franchise location does not constitute a warranty of its suitability. The FDD clearly states that the franchisee is responsible for selecting the site, potentially involving hiring a real estate broker. Pump It Up's approval only indicates that the site meets their current selection criteria.
Pump It Up emphasizes that their site selection criteria may not accurately reflect the potential of all sites, and demographic or other factors could change, affecting the site's viability. The document makes it clear that Pump It Up is not responsible if an approved site fails to meet the franchisee's expectations.
The FDD highlights that the franchisee's submission of a proposed site is based on their own independent investigation, and Pump It Up's site-selection assistance primarily benefits Pump It Up, ensuring a minimally acceptable site if the agreement expires or terminates. This means that while Pump It Up provides guidelines and assistance, the ultimate responsibility and risk in choosing a suitable location rests with the franchisee. This is a common practice in franchising, where franchisees typically bear the responsibility for site selection, while franchisors offer guidance and approval to maintain brand consistency and standards.