What conditions must a Pump It Up franchisee meet to be eligible for a Subsequent Franchise Agreement?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Subsequent Franchise Agreement.
You will have the option to request the right to continue as a franchisee at the Premises after the expiration of the Initial Term.
The qualifications and conditions for the successor term are described below:
(1) You must give us written notice of your election to continue as a franchisee at the Premises no less than 10 months ("Renewal Notice Deadline"), nor more than 18 months, before the end of the Initial Term;
(2) You must pay to us a successor term fee equal to 25% of the initial franchise fee then being charged to new franchisees (the "Successor Term Fee");
(3) Neither you nor any of your affiliates are in default under this Agreement or any other agreements with us or our affiliates;
(4) You must have the right to remain in possession of the Premises (or another location acceptable to us) for the entire duration of the term of the new Franchise Agreement;
(5) You must renovate and update the Franchised Business to reflect the then-current image and standards of Pump It Up Businesses;
(6) We reserve the right to require you to correct any existing deficiencies of the Franchised Business or in your operation of the Franchised Business and satisfy our then-current System Standards.
This may include, but not be limited to, adding any new products or services that are then being offered in the System, meet our qualifications for new franchisees, and complete any additional certification and training requirements that apply to you, your Operating Principal, and/or your managerial personnel (which may involve the payment of training fees);
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, a franchisee has the option to request to continue as a franchisee at their current location after the initial term expires. The initial term typically lasts for 10 years from when the franchise first opens, unless the agreement is terminated earlier.
To qualify for a subsequent franchise agreement with Pump It Up, the franchisee must meet several conditions. First, they must provide written notice of their intent to continue as a franchisee at the premises between 10 and 18 months before the end of the initial term. Second, the franchisee must pay a successor term fee, which is equal to 25% of the initial franchise fee that Pump It Up is charging new franchisees at the time.
Additionally, the franchisee must not be in default under the current agreement or any other agreements with Pump It Up or its affiliates. They must also have the right to remain in possession of the premises (or another location acceptable to Pump It Up) for the entire term of the new franchise agreement. The franchisee is also required to renovate and update the franchised business to meet the then-current image and standards of Pump It Up businesses. Finally, Pump It Up reserves the right to require the franchisee to correct any existing deficiencies in their business or its operation and meet the current system standards, which may include adding new products or services, meeting qualifications for new franchisees, and completing additional training requirements.