Does the Pump It Up franchise agreement require franchisees to remodel as a condition for renewal?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
and expire at midnight on the day preceding the 10th anniversary of the date the Franchised Business first opens for business, unless this Agreement is terminated at an earlier date pursuant to Section 19. We will memorialize for you the date the Franchised Business first opened for business.
- B. Subsequent Franchise Agreement. You will have the option to request the right to continue as a franchisee at the Premises after the expiration of the Initial Term. The qualifications and conditions for the successor term are described below:
- (1) You must give us written notice of your election to continue as a franchisee at the Premises no less than 10 months ("Renewal Notice Deadline"), nor more than 18 months, before the end of the Initial Term;
- (2) You must pay to us a successor term fee equal to 25% of the initial franchise fee then being charged to new franchisees (the "Successor Term Fee");
- (3) Neither you nor any of your affiliates are in default under this Agreement or any other agreements with us or our affiliates;
- (4) You must have the right to remain in possession of the Premises (or another location acceptable to us) for the entire duration of the term of the new Franchise Agreement;
- (5) You must renovate and update the Franchised Business to reflect the then-current image and standards of Pump It Up Businesses;
- (6) We reserve the right to require you to correct any existing deficiencies of the Franchised Business or in your operation of the Franchised Business and satisfy our then-current System Standards.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 47–50)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees must renovate and update their franchised business to reflect the then-current image and standards of Pump It Up businesses as a condition for續約. This is explicitly stated as one of the qualifications and conditions for obtaining a successor term as a franchisee at the premises after the initial term expires.
To renew their franchise agreement, franchisees must provide written notice of their intent to continue as a franchisee no less than 10 months and no more than 18 months before the end of the initial term. They must also pay a successor term fee equal to 25% of the initial franchise fee then being charged to new franchisees. Furthermore, franchisees must not be in default under the existing agreement or any other agreements with Pump It Up or its affiliates and must have the right to remain in possession of the premises for the entire duration of the new franchise agreement.
Pump It Up also reserves the right to require franchisees to correct any existing deficiencies in their franchised business or its operation and satisfy the then-current system standards. This may include adding new products or services, meeting qualifications for new franchisees, and completing additional certification and training requirements for the franchisee, their operating principal, and/or managerial personnel, which may involve paying training fees. Therefore, franchisees should be prepared to invest in renovations, updates, and additional training to meet the requirements for续約.