Is a Pump It Up franchisee or their Operating Principal/Multi-Unit Manager permitted to engage in other business activities?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
I. Management and Staffing of the Franchised Business.
- (1) You (or your Operating Principal or Multi-Unit Manager) must remain active in overseeing the operations of the Franchised Business, including, without limitation, regular, periodic visits to the Franchised Business and sufficient communications with us to ensure that the operations of the Franchised Business comply with the System Standards promulgated by us from time to time in the Manuals or otherwise in written or oral communications to you. You (or your Operating Principal or Multi-Unit Manager) will not engage in any other business or activity that conflicts with your obligations to operate the Franchised Business. You have the sole responsibility for recruiting, hiring, and training employees for the Franchised Business. Before you hire any employee for the Franchised Business, you should require that employee to sign a non-disclosure and confidentiality agreement. No employee of the Franchised Business is or shall be considered an employee of PIU.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a franchisee, their Operating Principal, or Multi-Unit Manager is restricted from engaging in other business activities that conflict with their obligations to operate the Pump It Up franchise. This restriction is in place to ensure full dedication to the franchise and to avoid any conflicts of interest that could arise from involvement in other ventures.
Specifically, the FDD emphasizes that the franchisee (or their designated Operating Principal or Multi-Unit Manager) must remain active in overseeing the operations of the franchised business. This includes regular visits to the location and consistent communication with Pump It Up to ensure compliance with system standards. The prohibition of conflicting business activities is designed to maintain the integrity of the Pump It Up system and protect its brand reputation.
Furthermore, the Pump It Up agreement also restricts franchisees and their owners from involvement with "Competing Businesses" during the term of the agreement and for a specified period afterward. These are defined as children's entertainment centers or recreation businesses with similar operations or trade dress to the Pump It Up system. This non-compete clause extends to owning, operating, advising, or having any interest in such competing businesses, reinforcing the commitment required from franchisees to focus solely on their Pump It Up franchise.