What is the definition of the "Protected Area" granted to a Pump It Up franchisee?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
anchise Agreement, we and our affiliates will not operate, or license others to operate, Pump It Up Businesses in the Site Selection Area during the Site Approval Period.
Once we have approved your site and you have completed all other opening and operational obligations, you will have the right to operate a Pump It Up Business at a designated location. If you comply with the Franchise Agreement, we will not operate, or license others to operate, Pump It Up Businesses in an agreed upon geographic area ("Protected Area") during the term of the Franchise Agreement. The Protected Area will be based upon zip codes or other geographic features around the Premises, and will typically be defined either as a one-mile radius around the Premises, or more or less of a radius depending on the demographics in your area. In certain areas of the country, the Protected Area may be stated as metes and bounds around the Premises.
Notwithstanding the grant of a Protected Area, we and our affiliates reserve the right, without any compensation to you, to: (1) operate (and license others to operate) any type of business other than a Pump It Up Business at any location inside or outside the Protected Area; (2) provide, offer and sell (and license others to provide, offer and sell) products that are identical or similar to and/or competitive with those provided at or from Pump It Up Businesses, whether identified by the Marks or other trademarks or service marks, through dissimilar distribution channels (including, without limitation, the internet or similar electronic media) both inside and outside the Protected Area; (3) operate (and license others to operate) Pump It Up Businesses located anywhere outside the Protected Area; (4) acquire the assets and/or ownership interests of one or more competing entertainment centers ("Competing Businesses") and franchising, licensing or creating similar arrangements with respect to these businesses once acquired wherever these businesses (or the franchisees or licensees of these businesses) are located or operating (including in the Protected Area); (5) be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction) by a competitor that operates Competing Businesses, or by another business, even if such business operates, franchises and/or licenses Competing Businesses in the Protected Area; and (6) create, place, and/or distribute or authorize others to create, place and/or distribute any advertising and promotional materials, which may appear in media, or be received by prospective customers located, within the Protected Area. The grant of a Protected Area to you does not restrict the future operation of Pump It Up Businesses that are under construction or the continued operation of Pump It Up Businesses in the Protected Area. We reserve all rights in the Site Selection Area with respect to the Protected Area.
Source: Item 12 — TERRITORY (FDD pages 41–43)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a Protected Area is a geographic region around the franchisee's premises where Pump It Up will not operate or license others to operate another Pump It Up Business, provided the franchisee is in full compliance with the Franchise Agreement. The Protected Area is agreed upon and defined once the site is approved and the franchisee has met all opening and operational obligations.
The size and shape of the Protected Area are not uniform. It is typically defined as a one-mile radius around the premises but can be more or less depending on the demographics of the area. In some regions, the Protected Area may be defined by metes and bounds. The Protected Area is based upon zip codes or other geographic features around the Premises.
It is important to note that Pump It Up retains several rights within and outside the Protected Area. Pump It Up and its affiliates can operate other types of businesses (other than a Pump It Up Business) without compensating the franchisee. They can also offer and sell similar products through different distribution channels, such as the internet. Furthermore, Pump It Up can acquire competing entertainment centers, be acquired by a competitor, and create advertising that may reach customers within the Protected Area. Pump It Up's affiliate, BounceU Holdings, is the franchisor of a competing inflatable business that operates under the mark "BOUNCEU," and BOUNCEU facilities may advertise and directly compete with Pump It Up Businesses located within the same geographic area.