What must a Pump It Up franchisee sign if they renew or transfer their franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
roposed transferee comes through an investigation process with a franchise sales broker that we have retained, then the transferee must pay our then-current Initial Franchise Fee instead of the Transfer Fee. This enables us to pay the additional costs we incur with a franchise sales broker, including the payment of the broker's commissions.
(c) you and the proposed transferee must sign either an assignment agreement and any amendments to this Agreement deemed necessary or desirable by us to reflect the Transfer, or our then-current standard form of franchise agreement for an initial term ending on the expiration date of the Initial Term of this Agreement. We will choose which documents you and the proposed transferee are required to sign. In either event, if the proposed transferee is an Entity, the transferee must complete Exhibit 4 as required by Section 14.B. and all individuals identified in Section 14.C. must sign the guaranty attached as Exhibit 5;
(d) the proposed transferee must sign our then-current Software License Agreement; and
(e) you (and all of your owners) must, at our request, sign a written guaranty pursuant to which you will remain liable for all obligations to us incurred before the date of the Transfer.
(3) Following the effective date of the Transfer:
(a) you and your transferring owners agree not to engage in any of the activities proscribed Section 18.B. below, for a period of 2 years, beginning on the effective date of the Transfer; and
(b) you and your transferring owners will not use any Mark, any colorable imitation of a Mark, or other indicia of a Pump It Up Business in any manner or for any purpose; or utilize for any purpose any trade name, trade or service mark, or other commercial symbol that suggests or indicates a connection or association with us.
C. Transfer for Convenience of Ownership. If you are an individual or a partnership and you would like to Transfer this Agreement to a corporation or limited liability company formed exclusively for the convenience of ownership, the requirements of Section 16.B. will apply to such a Transfer. However, you will not be required to pay a Transfer Fee under a transfer for convenience. Our approval of such a transfer will be conditioned on the following: (1) the corporation or limited liability company must be newly organized solely for the purpose of the Transfer; (2) prior to the Transfer, we must receive a copy of the documents specified in Section 14.B. and the transferee must comply with the remaining provisions of Section 14; (3) you must own all voting securities of the corporation or membership interests of the limited liability company or, if you are owned by more than one individual, each person must have the same proportionate ownership interest in the corporation or the limited liability company as prior to the Transfer; and (4) you and your owners must agree to remain personally liable under this Agreement as if the Transfer to the corporation or limited liability company did not occur.
D. Transfer Upon Your Death or Permanent Incapacity.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, if a franchisee chooses to transfer their franchise, both the franchisee and the proposed transferee must sign specific documents to finalize the transfer. These documents include an assignment agreement, along with any necessary amendments, or Pump It Up's current standard franchise agreement, which will have an initial term ending on the same expiration date as the original agreement. Pump It Up reserves the right to choose which of these document options the franchisee and transferee must sign. If the transferee is a business entity, they must also complete Exhibit 4 and have all individuals identified in Section 14.C sign the guaranty attached as Exhibit 5. The transferee must also sign Pump It Up's current Software License Agreement. Furthermore, the franchisee (and all owners) may be required to sign a written guaranty to remain liable for obligations incurred before the transfer date.
In the event of a transfer, the franchisee and their owners must agree not to engage in activities that violate Section 18.B of the franchise agreement for two years following the transfer date. They are also prohibited from using any Pump It Up marks or anything that could be mistaken for a Pump It Up mark.
For franchise renewals, the Pump It Up franchisee must meet several conditions to continue as a franchisee after the initial term. These conditions include providing written notice of their intent to renew within a specified timeframe, paying a successor term fee equal to 25% of the then-current initial franchise fee, and ensuring they are not in default under any agreements with Pump It Up. The franchisee must also maintain possession of the premises and renovate the business to meet Pump It Up's current standards. Pump It Up also reserves the right to require the franchisee to correct any existing deficiencies and meet current system standards, which may include adding new products or services and completing additional training.