When must a Pump It Up franchisee submit copies of Certificates of Insurance?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Each insurance policy you obtain shall be specifically endorsed to provide that the coverage shall be primary and that any insurance carried by any additional insured shall be excess and non-contributory. At least 10 days prior to commencing construction of the Franchised Business or 3 days before taking ownership of an existing open Pump It Up Franchised Business, and annually thereafter, you must submit to us a copy of all of your Certificates of Insurance or other evidence that you are maintaining this insurance coverage and paying premiums. If you obtain claims-made insurance policies, you must obtain tail coverage for at least four years after the end of any policy period in question or as otherwise set forth in your Franchise Agreement, the Manuals, or provided to you in writing. If you fail or refuse to obtain and maintain the insurance we specify, in addition to our other remedies, we may obtain such insurance for you and the Franchised Business. If we obtain insurance for you due to your failure or refusal to obtain or maintain the required insurance, or your failure or refusal to provide us with adequate evidence of holding such required insurance, you must cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a reasonable fee for our time incurred in obtaining such insurance.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a franchisee must submit copies of their Certificates of Insurance at three specific times. First, the franchisee must provide the certificates at least 10 days before starting construction of the franchised business. Second, if the franchisee is taking ownership of an existing Pump It Up location, the certificates are due 3 days before the ownership transfer. Finally, franchisees must submit these certificates annually to ensure continuous coverage.
Pump It Up requires that all insurance policies are specifically endorsed to ensure the franchisee's coverage is primary, meaning it pays out before any insurance held by additional insured parties. The policies must also stipulate that any insurance carried by additional insured parties is excess and non-contributory. This protects Pump It Up by ensuring the franchisee's insurance is the first line of defense in any claim.
If a Pump It Up franchisee fails to maintain the required insurance, Pump It Up has the right to obtain the necessary insurance on the franchisee's behalf. In such cases, the franchisee is responsible for reimbursing Pump It Up for all premiums, costs, and expenses incurred, along with a reasonable fee for Pump It Up's time in securing the insurance. This underscores the importance of maintaining continuous and adequate insurance coverage as mandated by Pump It Up.