What are some examples of non-curable defaults that would allow Pump It Up to terminate the franchise agreement?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (19) you fail to pay Royalties or make any required or expected Marketing Contributions or Expenditures as set forth in Section 9.A.
B. Remedies Following Default.
- (1) Termination Without Cure. Upon the occurrence of any of the events of Default set forth in Section 19.A., and in addition to the grounds for termination that may be stated elsewhere in this Agreement, we may, in our sole discretion, terminate this Agreement and the rights granted by this Agreement, upon written notice to you without an opportunity to cure.
- (2) Other Remedies. Upon the occurrence of any of the events of Default set forth in Section 19.A., and in addition to the grounds for termination that may be stated elsewhere in this Agreement, we may also take the following actions, in our sole discretion, upon written notice to you, until you remedy the underlying event(s) of Default to our satisfaction: temporarily restrict your ability to access any systems in our control, including the website for the Franchised Business; restrict your ability to book events online; and restrict your ability to access the POpS System.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 47–50)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, there are specific events of default that allow Pump It Up to terminate the franchise agreement without providing an opportunity for the franchisee to cure the default. These non-curable defaults, outlined in Section 19.A, give Pump It Up the discretion to terminate the agreement immediately upon written notice.
One such instance of non-curable default is if the franchisee fails to pay royalties or make required marketing contributions or expenditures as detailed in Section 9.A of the franchise agreement. Additionally, Pump It Up can terminate the agreement without allowing for a cure period if the franchisee attempts to divert any actual or potential business, employee, agent, or customer of any Pump It Up Business to a competing business.
These stipulations highlight the importance of maintaining timely payments and avoiding any actions that could be construed as diverting business away from the Pump It Up franchise system. Franchisees should be aware of these potential triggers for immediate termination and ensure they adhere to the terms of the franchise agreement to avoid such defaults.