What does Pump It Up consider an 'Entity' in the context of the franchise agreement?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
any litigation we commence or defend on your behalf to protect the Marks and your right to use them. You must cooperate with us in defending any litigation relating to the Marks, and you may not settle any claim without our written consent.
14. YOUR ORGANIZATIONAL STRUCTURE
A. Representations.
- (1) If you are a corporation, a limited liability company or a partnership (any of which, an "Entity"), you make the following representations and warranties: (a) you are duly organized and validly existing under the laws of the state of formation; (b) you are qualified to do business in the state, county, and city in which the Franchised Business is located; (c) execution of this Agreement and the development and operation of the Franchised Business is permitted by your governing documents; (d) unless waived in writing by us, your Articles of Incorporation, Articles of Organization or written partnership agreement must at all times provide that your activities are limited exclusively to the development and operation of Pump It Up Businesses and other businesses operated by you that are franchised by us or our affiliates; (e) all interests in you are owned as set forth in attached Exhibit 4; and (f) each person owning 5% interest in you, along with their spouse, has executed a guaranty agreement, set forth in attached Exhibit 5, undertaking to be bound by the provisions of the Franchise Agreement.
- (2) If you are an individual, a group of individuals, or a partnership comprised solely of individuals, you make the following representations and warranties: (a) each individual has signed 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, an "Entity" refers to the franchisee if the franchisee is a corporation, a limited liability company, or a partnership.
For Pump It Up franchisees operating as an Entity, several representations and warranties must be made to Pump It Up. These include assurances that the entity is properly organized and legally compliant within its state of formation and the location of the franchised business. The Entity's governing documents must allow for the operation of the Pump It Up franchise. Unless Pump It Up provides a written waiver, the Entity's activities must be limited exclusively to operating Pump It Up Businesses or other businesses franchised by Pump It Up or its affiliates.
Pump It Up also requires full disclosure of ownership interests in the Entity, with anyone owning 5% or more, along with their spouse, required to sign a guaranty agreement. Furthermore, if the franchisee is an Entity, Pump It Up requires true, correct, and fully executed copies of the franchisee's organizational and governing documents, provided no later than the execution of the Franchise Agreement. Any modifications or changes to these documents must be promptly provided to Pump It Up.