Does Pump It Up grant exclusive territories to franchisees?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
You may not operate the Franchised Business at any location other than the Premises, and you may not relocate your Franchised Business without our prior written consent. Our consent to relocate may be conditioned upon, among other things: (a) your payment of the actual charges we incur in connection with consideration of the relocation request; (b) your payment of an agreed minimum royalty during the period when the Franchised Business is not in operation due to the relocation; and (c) your relocation of the Franchised Business within 6 months after we approve your relocation request.
We generally do not restrict the persons you solicit, or the methods by which you promote the Franchised Business. However, if you utilize any form of direct advertising or social media directed at targeted customers, the advertising and social media efforts may be directed only to customers located within your Protected Area.
There are no minimum sales quotas or other conditions that must be met in order to maintain your Protected Area. We may not modify or terminate your rights in the Protected Area unless you are in default under the Franchise Agreement.
Disputes regarding Site Selection Areas and/or Protected Areas are resolved in a manner consistent with the Dispute Resolution provisions of the Franchise Agreement.
Except as described above, we and our affiliates may establish other franchised or company-owned outlets under the Marks and/or under other marks that may compete with your location. We and our affiliates may merchandise and distribute goods and services identified by the Marks through methods or channels of distribution other than outlets similar to your Franchised Business. We have no obligation to compensate you for any such sales in the Protected Area. We reserve all rights to use and license the System other than those we expressly grant you under the Franchise Agreement.
Our affiliate, BounceU Holdings, is the franchisor of a competing inflatable business that operates under the mark "BOUNCEU." BOUNCEU facilities may advertise and directly compete with Pump It Up Businesses located within the same geographic area. Our management team also has management responsibility for the BOUNCEU franchise system, and we share offices with BOUNCEU.
Source: Item 12 — TERRITORY (FDD pages 41–43)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. While franchisees are granted a "Protected Area," this area is subject to several exceptions that significantly limit its exclusivity. Pump It Up and its affiliates retain the right to operate other businesses (excluding other Pump It Up locations) inside or outside the Protected Area, sell similar products through different channels like the internet, operate Pump It Up businesses outside the Protected Area, and acquire competing entertainment centers. These rights mean that a franchisee could face competition from Pump It Up itself or other businesses it controls, even within their Protected Area.
Pump It Up's Protected Area is defined based on zip codes or geographic features around the premises, typically as a one-mile radius, though this can vary based on local demographics. Franchisees are generally free to solicit customers and promote their business, but direct advertising and social media efforts must target customers within their Protected Area. There are no minimum sales quotas required to maintain the Protected Area, and Pump It Up may only modify or terminate these rights if the franchisee defaults on the Franchise Agreement.
Furthermore, the FDD highlights a potential conflict of interest, as Pump It Up's affiliate, BounceU Holdings, operates a competing inflatable business under the name "BOUNCEU." These BounceU facilities can advertise and directly compete with Pump It Up businesses, even within the same geographic area. The shared management and offices between Pump It Up and BounceU further emphasize this potential for competition. This arrangement means that a Pump It Up franchisee could face direct competition from a related company, which is a significant factor to consider.
In summary, while Pump It Up offers a Protected Area, the numerous exceptions and the potential for competition from affiliated businesses mean that the territory is far from exclusive. Prospective franchisees should carefully consider these limitations and evaluate the potential impact of competition on their business before investing in a Pump It Up franchise.