What is the geographic scope of the Pump It Up non-compete during the restrictive period?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement expires or is terminated; provided however, that if a court determines that such period is unenforceable, the Restrictive Period shall end six months from the date the Franchise Agreement expires or is terminate.
- (4) During the term of this Agreement, there is no geographical limitation on the restrictions contained in this Section 18.B. During the Restrictive Period, these restrictions will apply at the Premises; within a 5-mile radius of the outer boundaries of the Protected Area; and within 5 miles of any other Pump It Up Business in operation or under construction on the later of: (i) the date of the termination or expiration of this Agreement; or (ii) the date on which all persons restricted by Section 18.B. begin to comply with Section 18.B.
- (5) If, at any time during the Restrictive Period, you or your owners fail to comply with your obligations contained in this Section 18.B., that period of noncompliance will not be credited toward the satisfaction of your obligations under this Section 18.B. These restrictions also apply after Transfers, as provided in Section 16.B.(3) above.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up FDD, during the restrictive period, franchisees are restricted from operating a competing business at the premises, within a 5-mile radius of the outer boundaries of the protected area, and within 5 miles of any other Pump It Up business in operation or under construction. These restrictions apply from the date of termination or expiration of the franchise agreement, or the date on which all persons restricted by Section 18.B begin to comply with Section 18.B, whichever is later.
The Pump It Up agreement specifies that if a franchisee or their owners fail to comply with the non-compete obligations during the restrictive period, the period of noncompliance will not count towards fulfilling their obligations. This means the non-compete clock essentially pauses during any violation, extending the overall duration of the restriction.
It's also important to note that the Pump It Up franchise agreement includes a clause addressing the enforceability of the non-compete. If any part of the non-compete is deemed unenforceable due to its scope, prohibited business activity, or length of time, Pump It Up and the franchisee agree that the covenant will be enforced to the fullest extent permissible under applicable laws and public policies. This ensures that the non-compete is interpreted and applied as broadly as legally possible to protect Pump It Up's interests.