What is the Pump It Up franchisee prohibited from doing with the software after the term of the software license?

According to Pump It Up's 2025 Franchise Disclosure Document, upon the expiration or termination of the software license or the franchise agreement, whichever occurs earlier, the franchisee must immediately stop using the software. Furthermore, the franchisee is required to promptly return all copies of the software in their possession or control to Pump It Up. The franchisee must also erase the software from their computer systems.

This means that a franchisee cannot continue to use the Pump It Up software for any reason after the franchise agreement ends. This includes using it for a different business or even for personal use. The franchisee's rights to use the software are directly tied to the active franchise agreement.

This provision is standard in franchising, as the software is considered proprietary and contains trade secrets of the franchisor. Franchisors need to protect their intellectual property and ensure that former franchisees do not gain an unfair competitive advantage by continuing to use the software after the agreement has ended. The franchisee's compliance with these terms is critical to avoid potential legal repercussions and maintain a clean break from the franchise system.