What is the effect of a franchisee's failure to comply with the terms of the Pump It Up franchise agreement?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will not take possession of the Pump It Up Business until and unless Franchisee defaults, and/or receives notice of default (and/or until there is a termination, cancellation or rescission of Franchisee's rights) under the Lease, any sublease, any other document or instrument, or otherwise. In such event, Franchisor (or its designee) shall have the right (but not the obligation) to take possession of the Pump It Up Business, expel Franchisee from the Pump It Up Business, and, in such event, Franchisee shall have no further right, title or interest in or under the Lease or to the Pump It Up Business, all such rights thereby passing to Franchisor or its designee, in each case without Landlord's further consent. Franchisee agrees to do all acts necessary or appropriate to accomplish such assignment on Franchisor's request.
Franchisee agrees that it will not suffer or permit any surrender, termination, amendment or modification of the Lease without the prior written consent of Franchisor. Throughout the term of the Franchise Agreement, Franchisee agrees that it shall elect and exercise all options to extend the term of, or renew or assume in bankruptcy, the Lease not less than 30 days prior to the last day that any option must be exercised, unless Franchisor otherwise agrees in writing. If Franchisee fails to extend, renew, or assume the Lease, Franchisee hereby appoints Franchisor as its true and lawful attorney in fact to exercise such options for the sole purpose of effecting any extension, renewal or assumption, in each case for the account of Franchisee and without any liability or obligation of Franchisor.
Franchisor's failure to exercise any remedy hereunder shall not be construed or deemed to be a waiver of any of its rights hereunder. The rights and remedies of Franchisor under this Assignment are cumulative and are not in lieu of, but are in addition to, any other rights and remedies which Franchisor shall have under or by virtue of the Franchise Agreement or otherwise. The terms, covenants, and conditions contained herein shall bind Franchisee, and inure to the benefit of Franchisor, and their respective successors and assigns. In the event of any dispute between the parties regarding this Assignment, or any matter related in any way to it, the dispute resolution provisions (including, but not limited to, waiver of
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, if a franchisee defaults or receives a notice of default under the lease, sublease, or any other relevant document, Pump It Up (or its designee) has the right, but not the obligation, to take possession of the Pump It Up business. In such an event, the franchisee will lose all rights, title, and interest in the lease and the business, which will then pass to Pump It Up or its designee, without requiring further consent from the landlord. The franchisee must take all necessary actions to facilitate this transfer upon Pump It Up's request.
Furthermore, the franchisee cannot surrender, terminate, amend, or modify the lease without Pump It Up's prior written consent. The franchisee must also elect and exercise all options to extend the term of, renew, or assume the lease in bankruptcy at least 30 days before the option expires, unless Pump It Up agrees otherwise in writing. If the franchisee fails to do so, they appoint Pump It Up as their attorney to exercise these options on their behalf, without any liability or obligation on Pump It Up's part.
Pump It Up's failure to exercise any remedy does not waive any of its rights under the agreement. The rights and remedies available to Pump It Up are cumulative and in addition to any other rights and remedies available under the Franchise Agreement or otherwise. All terms, covenants, and conditions bind the franchisee and benefit Pump It Up and their respective successors and assigns. In case of any dispute regarding the assignment or related matters, the dispute resolution provisions of the agreement will apply, including a waiver of.