What automobile liability insurance limit is required for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
d by the state or local government in which your Franchised Business is located;
- (b) worker's compensation and employer's liability insurance as well as such other insurance as may be required by statute or rul
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees are required to maintain automobile liability insurance and property damage liability, including owned, non-owned, and hired vehicle coverage. This coverage must have a combined single limit of at least $1,000,000, with a $2,000,000 general aggregate limit.
Pump It Up mandates these minimum insurance requirements to protect their interests and manage risks associated with the operation of the franchised business. However, Pump It Up states that these minimum insurance requirements are not representations or warranties that such coverage is sufficient for the operation of your Franchised Business.
Prospective franchisees should factor in the cost of this insurance coverage when evaluating the financial feasibility of opening a Pump It Up franchise. Additionally, franchisees must ensure that their insurance policies are written by a licensed insurance company in the state where the franchised business is located and meet Pump It Up's minimum standards and specifications.
Pump It Up may periodically increase the minimum required coverage and/or modify or require different or additional insurance coverage (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. Franchisees will receive written notice of such modifications and must take prompt action to secure the additional coverage or higher policy limits.