factual

As of the date of this Pump It Up FDD, what is the status of the California addendum?

Pump_It_Up Franchise · 2025 FDD

Answer from 2025 FDD Document

ADDENDA REQUIRED BY CERTAIN STATES

ADDENDUM TO PUMP IT UP FRANCHISE AGREEMENT

REQUIRED FOR CALIFORNIA FRANCHISEES

ADDITIONAL DISCLOSURES REQUIRED BY THE STATE OF CALIFORNIA

The registration of this franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the Commissioner.

The California Franchise Investment Law requires that a copy of all proposed agreements relating to the sale of the Franchise be delivered together with the FDD 14 days prior to execution of any agreement.

California Corporations Code Section 31125 requires us to give to you a FDD approved by the California Department of Financial Protection and Innovation before we ask you to consider a material modification of your Franchise Agreement.

The Franchise Agreement contains provisions requiring litigation, with the costs being awarded to the prevailing party.

The litigation will occur in Franchisor's then existing principal business location.

Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of the Franchise Agreement restricting venue to a forum outside the State of California.

The Franchise Agreement requires the application of the law of Arizona.

This provision may not be enforceable under California law.

Neither Franchisor nor any other person listed in Item 2 of the FDD is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities Exchange Act of 1934, 15 U.S.C.A. 78a et seq., suspending or expelling such persons from membership in such association or exchange.

The following statement is added to Item 5:

  • a) "The Department has determined that we, the franchisor, have not demonstrated we are adequately capitalized and/or that we must rely on franchise fees to fund our operations.

Source: Item 23 — RECEIPTS (FDD pages 60–225)

What This Means (2025 FDD)

According to the 2025 Pump It Up Franchise Disclosure Document, the franchise is registered in California, and an addendum to the franchise agreement is required for California franchisees. The FDD states that the registration of the franchise offering in California by the Department of Financial Protection and Innovation does not constitute an endorsement or recommendation by the Commissioner.

The California Franchise Investment Law mandates that all proposed agreements related to the sale of the Pump It Up franchise be delivered along with the FDD at least 14 days before any agreement is executed. Additionally, California Corporations Code Section 31125 requires that Pump It Up provide a FDD approved by the California Department of Financial Protection and Innovation before asking a franchisee to consider any material modifications to their Franchise Agreement.

Furthermore, the FDD notes that the Franchise Agreement contains provisions requiring litigation in the Franchisor's principal business location, with costs awarded to the prevailing party. Prospective Pump It Up franchisees are encouraged to seek legal counsel to understand the applicability of California and federal laws regarding venue restrictions. The Franchise Agreement also requires the application of Arizona law, which may not be enforceable under California law. The FDD also states that the Department has determined that the franchisor may not be adequately capitalized and/or must rely on franchise fees to fund their operations.

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.