What must a Pump It Up franchisee do within the Site Approval Period?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) If the Premises have not been designated as of the Effective Date, you will select a site from within an area that we identify in Exhibit 1 (the "Site Selection Area").
Within 12 months after the Effective Date (the "Site Approval Period"), you must obtain our written approval of a site that is located in the Site Selection Area, and you must execute a lease or purchase contract (or otherwise secure rights to utilize) for an approved site for the Franchised Business.
We, in our sole discretion, reserve the right to change the Site Selection Area at any time and for any reason.
If you are in full compliance with this Agreement, we and our affiliates will not operate, or license others to operate, Pump It Up Businesses in the Site Selection Area during the Site Approval Period.
We reserve all rights in the Site Selection Area that we reserve with respect to the Protected Area as described in Section 3.A.
The limited exclusivity described in Section 3.A. and restrictions contained in this Section 5.A. shall not apply to Pump It Up Businesses already under construction or in operation in the Site Selection Area as of the date of this Agreement.
When you sign a lease or purchase contract for (or otherwise secure rights to utilize) the approved site for the Franchised Business, any limited rights you had with respect to the Site Selection Area will be deemed extinguished.
- (3) You assume all costs, liabilities and expenses for locating, obtaining and developing a site for the Franchised Business, and for constructing and equipping the Franchised Business in accordance with our System Standards.
We will assist you in your site selection by providing you with our site selection guidelines and criteria (which may include population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, parking, size, and other physical and commercial characteristics), and sources for you to obtain demographic information on proposed sites.
You must obtain our written approval of the site before you make any binding commitments related to the site.
If you have not presented to us a legitimately viable site for approval during the Site Approval Period, we may, in our sole discretion, terminate this Agreement pursuant to Section 19.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, if the premises have not been designated as of the effective date of the franchise agreement, the franchisee must select a site from within the area that Pump It Up identifies in Exhibit 1, called the Site Selection Area. Within 12 months after the effective date, which is referred to as the Site Approval Period, the franchisee must obtain Pump It Up's written approval of a site located in the Site Selection Area. Additionally, the franchisee must execute a lease or purchase contract, or otherwise secure rights to utilize an approved site for the franchised business.
Pump It Up retains the right to change the Site Selection Area at any time and for any reason at their sole discretion. During the Site Approval Period, Pump It Up and its affiliates will not operate or license others to operate Pump It Up businesses in the Site Selection Area, provided the franchisee is in full compliance with the agreement. However, this exclusivity does not apply to Pump It Up businesses already under construction or in operation in the Site Selection Area as of the date of the agreement. Once the franchisee signs a lease or purchase contract, or secures rights to utilize the approved site, any limited rights they had with respect to the Site Selection Area are extinguished.
If the franchisee does not present a legitimately viable site for approval during the Site Approval Period, Pump It Up may terminate the agreement at its sole discretion. The franchisee is responsible for all costs, liabilities, and expenses related to locating, obtaining, and developing a site, as well as constructing and equipping the franchised business according to Pump It Up's System Standards. Pump It Up will assist in site selection by providing guidelines and criteria, including factors like population density, visibility, traffic flow, competition, accessibility, parking, size, and other characteristics, as well as sources for demographic information. The franchisee must obtain written approval of the site before making any binding commitments related to it.