What is the definition of 'Protected Area' for a Pump It Up franchise, as defined in the agreement?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as limited by Section 3.B. below, and provided that you are in full compliance with this Agreement, we and our affiliates will not operate, nor license others to operate, Pump It Up Businesses in the geographic area identified and described in Exhibit 1 (the "Protected Area"), during the term of this Agreement.
The limited exclusivity and restrictions contained in this Section 3 do not apply to Pump It Up Businesses already under construction or in operation in the Protected Area as of the date of this Agreement.
If the Premises have not been approved in writing by us as of the Effective Date, your Protected Area will be determined by us after you execute a lease for the Franchised Business, or otherwise secure the Premises in a manner approved by us, and at such time the Protected Area will be attached to and incorporated into Exhibit 1.
We reserve all rights in the Site Selection Area with respect to the Protected Area.
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's 'Protected Area' is a geographic area, defined in Exhibit 1 of the Franchise Agreement, within which Pump It Up agrees not to operate or license others to operate a competing Pump It Up Business during the term of the agreement, provided the franchisee remains in full compliance with the agreement. This exclusivity is limited and does not apply to Pump It Up Businesses already under construction or in operation within the Protected Area as of the agreement date.
However, the Protected Area is not always immediately defined. If the franchise location ('Premises') has not been approved by Pump It Up as of the agreement's effective date, the Protected Area will be determined by Pump It Up after the franchisee secures an approved location. This determination will then be formally documented as part of Exhibit 1 to the Franchise Agreement. Pump It Up retains all rights in the 'Site Selection Area' with respect to the Protected Area, giving them considerable control over the location and its surroundings.
This means that a prospective Pump It Up franchisee might not know the exact boundaries of their Protected Area until after they have committed to a specific location. The franchisee needs to secure a site within the 'Site Selection Area' and have it approved by Pump It Up. The franchisor also retains significant rights, such as operating other types of businesses or selling similar products through different channels, even within the Protected Area. Franchisees should carefully review Exhibit 1 and Section 3 of the Franchise Agreement to fully understand the scope and limitations of their exclusive rights.