factual

What constitutes a default under Section 19.C.(1) for a Pump It Up franchise?

Pump_It_Up Franchise · 2025 FDD

Answer from 2025 FDD Document

You will be in default under this Section 19.C.(1) for any failure to materially comply with any of the requirements imposed by this Agreement, the Manuals or otherwise in writing, or to carry out the terms of this Agreement in good faith.

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 will be in default under Section 19.C.(1) for failing to materially comply with the requirements imposed by the Franchise Agreement, the manuals, or any other written communication from Pump It Up. This also includes failing to carry out the terms of the Franchise Agreement in good faith. This means that a Pump It Up franchisee must adhere to all guidelines, standards, and obligations outlined in these documents.

This section outlines the circumstances under which Pump It Up can declare a franchisee in default, which can ultimately lead to termination of the franchise agreement if the default is not remedied within the specified cure period. The cure period for defaults under Section 19.C.(1) is 30 days after written receipt of notice of default from Pump It Up. If the default cannot be corrected within 30 days, the franchisee has additional time to correct the default as reasonably required, not to exceed 90 days, provided they promptly begin taking the actions necessary to correct the default during the 30 day cure period and diligently and in good faith pursue those actions to completion.

For a prospective Pump It Up franchisee, this highlights the importance of thoroughly understanding all aspects of the Franchise Agreement, manuals, and any written communications from the franchisor. It also emphasizes the need to act in good faith and to make a diligent effort to meet all obligations. Failure to do so can result in a default, potentially leading to termination of the franchise agreement. Franchisees should maintain open communication with Pump It Up to address any concerns or challenges in meeting these requirements to avoid potential defaults.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.