What is the definition of 'Transfer' that requires prior written approval from Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not change the Operating Principal without our prior written consent.
You may not grant any security interest in your business entity, the Franchised Business, the Premises or the assets used in the operation or development of the Franchised Business without our prior written approval.
If the Transfer is a transfer of ownership interests in you, if you are an Entity, following the death or permanent incapacity (as reasonably determined by us) of one of your owners, that person's executor, administrator or other personal representative must make a written request to us within 90 days after death or declaration of disability for consent to Transfer this person's interest to a third party.
If you are an individual or a partnership and you would like to Transfer this Agreement to a corporation or limited liability company formed exclusively for the convenience of ownership, the requirements of Section 16.B. will apply to such a Transfer.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Pump It Up requires prior written approval for several types of transfers. These include changing the Operating Principal, granting a security interest in the business, transferring ownership interests after the death or permanent incapacity of an owner, and transfers for convenience of ownership. Specifically, franchisees must seek approval before changing the Operating Principal who oversees the business, and the new principal must complete the initial training program.
Pump It Up also requires approval before a franchisee can grant a security interest in their business entity, the franchised business, the premises, or the assets used in the operation. In the event of an owner's death or incapacity, their representative must request approval within 90 days to transfer the ownership interest to a third party, with the transfer to be completed within six months. Additionally, if a franchisee wishes to transfer the agreement to a corporation or limited liability company for ownership convenience, they must also seek Pump It Up's approval.
These stipulations allow Pump It Up to maintain standards and ensure that any changes in ownership or management align with their operational requirements. Franchisees need to be aware of these conditions to avoid any breaches of the franchise agreement and to ensure a smooth transition in the event of necessary transfers.