What is the definition of 'Interim Period' in the Pump It Up franchise agreement?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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Interim Period Fee.
If your Franchise Agreement has expired and (1) you have not timely executed a new Franchise Agreement; and (2) you continue to operate your Franchised Business after the expiration date of the Term, you will pay us, in addition to the Royalty and other fees detailed in Section 7, an Interim Period Fee equal to 1% of Gross Revenues.
You must pay the Interim Period Fee in the same manner and at the same time as your Royalty payment.
Your payment of the Interim Period Fee is not our
exclusive remedy and shall not preclude any and all available legal remedies available to us pursuant to this Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 47–50)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, the 'Interim Period' refers to the time after a franchise agreement has expired, but the franchisee continues to operate the Pump It Up business. Specifically, this occurs when (1) a new franchise agreement has not been executed in a timely manner, and (2) the franchisee continues operations after the original agreement's expiration date.
During this Interim Period, the franchisee is obligated to pay an 'Interim Period Fee'. This fee is equal to 1% of the gross revenues, in addition to the standard royalty and other fees outlined in Section 7 of the franchise agreement. The Interim Period Fee must be paid in the same manner and at the same time as the royalty payments.
The FDD emphasizes that the collection of the Interim Period Fee is not Pump It Up's exclusive remedy. Pump It Up retains the right to pursue any and all legal remedies available under the agreement, in addition to collecting the fee. This underscores the importance of either renewing the franchise agreement promptly or ceasing operations upon its expiration to avoid additional costs and potential legal actions.