What is the duration of the Trademark License Agreement between Pump It Up and FB Holdings, LLC?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Under a Trademark License Agreement with our parent, FB Holdings, LLC, we have the exclusive right to use and permit our franchisees to use the name and mark "Pump It Up" in addition to certain related trademarks, service marks and other commercial symbols. The term of the License Agreement is perpetual in duration, however, FB Holdings, LLC has the right to terminate the License Agreement following a cure period if we commit a breach of the License Agreement by not policing the standards under which the Marks are used by our franchisees. In the event of a termination of the License Agreement, our rights and obligations under all Franchise Agreements are deemed to be assigned to FB Holdings, LLC to provide continuity of operations to our franchisees.
Source: Item 13 — TRADEMARKS (FDD pages 43–45)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the Trademark License Agreement between Pump It Up and its parent company, FB Holdings, LLC, is perpetual. This agreement grants Pump It Up the exclusive right to use the "Pump It Up" name and related trademarks, service marks, and commercial symbols, and to permit its franchisees to do the same. This arrangement is typical in franchising, where the franchisor licenses its brand's intellectual property for franchisees to use.
However, the agreement is not without conditions. FB Holdings, LLC retains the right to terminate the License Agreement if Pump It Up breaches the agreement by failing to adequately police the standards under which franchisees use the marks, but only after a cure period. This clause underscores the importance of brand consistency and quality control within the Pump It Up franchise system. It also highlights the franchisor's responsibility to ensure franchisees adhere to brand standards to maintain the trademark's value.
In the event that the Trademark License Agreement is terminated, the FDD states that all rights and obligations under the Franchise Agreements are assigned to FB Holdings, LLC. This provision is designed to provide continuity of operations for franchisees, ensuring that they can continue operating their Pump It Up businesses even if the relationship between Pump It Up and its parent company changes. This type of clause is beneficial for franchisees as it protects their investment and business operations from potential disputes between the franchisor and its parent company.