Is employment practices liability coverage required for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
pecify in the Manuals or otherwise in writing. Our minimum insurance requirements are not representations or warranties that such coverage is sufficient for the operation of your Franchised Business. Our requirements only represent the minimum coverage for your Franchised Business that we deem acceptable to protect our interests. Our current minimum insurance requirements are as follows:
- (a) comprehensive general liability insurance with limits of the greater of (i) $1,000,000 per occurrence and $2,000,000 aggregate; and (ii) those amounts required by the state or local government in which your Franchised Business is located;
- (b) worker's compensation and employer's liability insurance as well as such other insurance as may be required by statute or rule of the state in which the Franchised Business is located and operated;
- (c) employment practices liability coverage;
- (d) automobile liability insurance, and property damage liability, including owned, non-owned, and hired vehicle coverage, with at least $1,000,000 combined single limit, and $2,000,000 general aggregate limit;
- (e) guaranteed or extended cost replacement property insurance (and contingent liability and building ordinance coverage if you or an entity controlled by you
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, employment practices liability coverage is required. Pump It Up mandates that franchisees maintain certain minimum insurance coverages throughout the term of the franchise agreement. These coverages are intended to protect both the franchisee and Pump It Up from potential liabilities arising from the operation of the business.
In addition to employment practices liability coverage, Pump It Up requires franchisees to have comprehensive general liability insurance with limits of the greater of $1,000,000 per occurrence and $2,000,000 aggregate, or those amounts required by the state or local government. Franchisees must also maintain worker's compensation and employer's liability insurance, automobile liability insurance with specified limits, and property insurance. Business interruption insurance adequate for a six-month period, covering royalty payments, is also mandatory.
Pump It Up also recommends, but does not require, that franchisees obtain sexual and physical abuse insurance coverage with limits of not less than $50,000 per occurrence. Franchisees must provide Pump It Up with copies of their Certificates of Insurance prior to commencing construction and annually thereafter. Pump It Up retains the right to modify insurance requirements and may obtain insurance on behalf of the franchisee if the franchisee fails to do so, with the franchisee responsible for reimbursing all costs and expenses.