For Pump It Up, what does the FB Holdings, LLC guaranty ensure for franchisees?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, FB HOLDINGS, LLC, an Arizona limited liability company (the "Guarantor"), located at 4343 E. Outlier Blvd., Suite 220, Phoenix, AZ 85008, absolutely and unconditionally guarantees to assume the duties and obligations of PUMP IT UP HOLDINGS, LLC, an Arizona Limited Liability Company, located at 4343 E. Outlier Blvd., Suite 220, Phoenix, AZ 85008 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
The Guarantor executes this guarantee at Phoenix, Arizona on this 14 day of April 2025.
Guarantor: FB HOLDINGS, LLC
Name: Lauren Tebbenhoff
Title: President
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, FB Holdings, LLC, the parent company of Pump It Up Holdings, LLC, provides a guarantee of performance to franchisees. This guarantee ensures that FB Holdings, LLC will assume the duties and obligations of Pump It Up Holdings, LLC under the franchise registration in each state where the franchise is registered and under the Franchise Agreement. This arrangement is designed to protect franchisees in the event that Pump It Up Holdings, LLC is unable to fulfill its obligations. The guarantor's address is 4343 E. Outlier Blvd., Suite 220, Phoenix, AZ 85008. The franchisor's address is the same.
The guarantee remains in effect until all obligations of Pump It Up Holdings, LLC under its franchise registrations and the Franchise Agreement are satisfied, or until the liability of the franchisor to its franchisees under the Franchise Agreement has been completely discharged. This means that FB Holdings, LLC's commitment continues as long as there are outstanding claims or unfulfilled duties by Pump It Up Holdings, LLC to its franchisees. The guarantee explicitly states that FB Holdings, LLC will not be released from liability if a franchisee's claim against Pump It Up Holdings, LLC remains unresolved.
This guarantee provides an added layer of security for franchisees, assuring them that the parent company, FB Holdings, LLC, stands behind the franchisor's commitments. It mitigates the risk that franchisees might face if Pump It Up Holdings, LLC were to encounter financial or operational difficulties. The President of FB Holdings, LLC, Lauren Tebbenhoff, executed this guarantee on April 14, 2025, in Phoenix, Arizona, further solidifying the commitment. This type of guarantee from a parent company is a fairly common practice in franchising, especially when the direct franchisor is a newer or smaller entity.