What fees are prohibited when assigning the lease to Pump It Up or its designee?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(h) You may assign the lease to us or our designee with the landlord's consent (which consent will not be unreasonably withheld) and without payment of any assignment fee or similar charge or increase in any rentals payable to the landlord.
(i) The landlord agrees to consent to your collaterally assigning the lease to us or our designee, granting us the option, but not the obligation, to assume the lease from the date we take possession of the Premises, without payment of any assignment fee or similar charge or increase in any rentals payable to the landlord.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, when assigning a lease to Pump It Up or its designee, the franchisee is not required to pay any assignment fee or face an increase in rental payments to the landlord. This protection is in place provided the landlord's consent is obtained, which, according to the FDD, cannot be unreasonably withheld. This applies both to direct assignments and collateral assignments of the lease.
This provision is beneficial for a Pump It Up franchisee because it reduces potential costs associated with transferring the lease in situations where Pump It Up or its designee needs to take over the lease. This could occur if the franchisee defaults or under other circumstances where Pump It Up exercises its rights to assume the lease.
It is important to note that while assignment fees and rental increases are prohibited under these specific assignment scenarios, other fees and costs may still apply in different contexts as outlined elsewhere in the Franchise Agreement. Franchisees should carefully review the entire agreement to understand all potential financial obligations and conditions related to lease assignments and other operational aspects of the Pump It Up business.