What is the 'Due Diligence Period' for Pump It Up, and how long does it last?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
For a period of 30 days after the date of the Purchase Notice (the "Due Diligence Period"), we have the right to conduct such investigations as we deem necessary and appropriate to determine: (1) the ownership, condition and title of the Assets; (2) any liens or encumbrances on the Assets; (3) environmental and hazardous substances at or upon the Premises; and (4) the validity of contracts and liabilities inuring to us or affecting the Assets, whether contingent or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the 'Due Diligence Period' refers to the time Pump It Up has to investigate the assets of a franchise if they choose to purchase it. This period begins after Pump It Up provides a 'Purchase Notice'.
Specifically, Pump It Up has a 30-day period after the date of the Purchase Notice to conduct investigations. These investigations are to determine the ownership, condition, and title of the assets, any liens or encumbrances on the assets, environmental and hazardous substances at the premises, and the validity of contracts and liabilities affecting the assets.
This due diligence is part of Pump It Up's option to purchase the assets of a franchise, and it allows them to thoroughly assess what they are buying before finalizing the purchase. The Purchase Price will be paid in cash or cash equivalents at the closing of the purchase, which will take place no later than 60 days after the date of the Purchase Notice.