Who assumes the costs for locating and developing a site for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) You assume all costs, liabilities and expenses for locating, obtaining and developing a site for the Franchised Business, and for constructing and equipping the Franchised Business in accordance with our System Standards.
We will assist you in your site selection by providing you with our site selection guidelines and criteria (which may include population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, parking, size, and other physical and commercial characteristics), and sources for you to obtain demographic information on proposed sites.
You must obtain our written approval of the site before you make any binding commitments related to the site.
If you have not presented to us a legitimately viable site for approval during the Site Approval Period, we may, in our sole discretion, terminate this Agreement pursuant to Section 19.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the franchisee is responsible for all costs associated with site selection and development. This includes the expenses, liabilities, and overall costs for locating, obtaining, and developing the site for the franchised business. The franchisee also bears the costs for constructing and equipping the Pump It Up location to meet the brand's System Standards.
Pump It Up does offer assistance with site selection by providing franchisees with site selection guidelines and criteria. These guidelines may include factors such as population density, demographic characteristics, visibility, traffic flow, competition, accessibility, parking, and size. Pump It Up may also provide sources for franchisees to obtain demographic information on potential sites. However, the franchisee must obtain written approval of the site from Pump It Up before making any binding commitments related to the location.
This arrangement is typical in the franchise industry, where franchisees generally bear the costs of site development. It is important for prospective Pump It Up franchisees to carefully consider these costs and ensure they have adequate capital to cover them. Failing to secure an approved site within the specified Site Approval Period could lead to termination of the franchise agreement.