As of the date of this Pump It Up FDD, what is the status of the Maryland addendum?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The provisions of this Addendum form an integral part of, and are incorporated into the Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to you was made in the State of Maryland; (B) you are a resident of the State of Maryland; (C) part or all of the Protected Area is located in the State of Maryland; and/or (D) the Franchised Business will be located or operated in the State of Maryland.
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- The following sentence is added to the end of Sections 4.B.(8), 16.B.(1)(h) and 17:
This release shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- The following sentence is added at the end of Section 7.A(1).:
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the Franchise Agreement and the outlet is opened.
- The following sentence is added to the end of Section 7.A(2)(c):
The general release required to obtain a refund of 50% of the Initial Franchise Fee shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
- The following sentence is added to the end of Section 27.C.:
Notwithstanding the foregoing, you may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
- The following sentence is added to the end of Section 27.G.:
This limitation of claims provision shall not act to reduce the 3-year statute of limitations afforded a franchisee for bringing a claim arising under the Maryland Franchise Registration and Disclosure Law, which claim must be brought within 3 years after the grant of the franchise.
- The following sentence is added to the end of Section 30:
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, an addendum to the franchise agreement is required for Maryland franchisees. This addendum is executed because the franchise offer or sale was made in Maryland, the franchisee is a Maryland resident, the protected area is in Maryland, and/or the franchised business will be located or operated in Maryland.
The Maryland addendum modifies several sections of the standard Pump It Up franchise agreement to ensure compliance with the Maryland Franchise Registration and Disclosure Law. Specifically, it states that releases within the agreement do not waive liability under Maryland law. It also stipulates that the franchisee can bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, regardless of other provisions. The addendum also ensures that the statute of limitations for claims under Maryland franchise law remains at three years.
Furthermore, due to the franchisor's financial condition, the Maryland Securities Commissioner requires a financial assurance. As a result, all initial fees and payments owed by franchisees in Maryland are deferred until Pump It Up completes its pre-opening obligations and the outlet is opened. This provides a level of financial protection for franchisees in Maryland, ensuring that they do not pay fees until the franchisor has fulfilled its initial responsibilities.