Does the Guarantor for Pump It Up waive notice of acceptance of the guarantee?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, FB HOLDINGS, LLC, an Arizona limited liability company (the "Guarantor"), located at 4343 E. Outlier Blvd., Suite 220, Phoenix, AZ 85008, absolutely and unconditionally guarantees to assume the duties and obligations of PUMP IT UP HOLDINGS, LLC, an Arizona Limited Liability Company, located at 4343 E. Outlier Blvd., Suite 220, Phoenix, AZ 85008 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the Guarantor, FB HOLDINGS, LLC, waives notice of acceptance of the guarantee. This means that once the guarantee is executed, Pump It Up is not required to formally notify the Guarantor that their guarantee is accepted in order for it to be effective. This waiver simplifies the process for Pump It Up, as they do not need to take additional steps to ensure the guarantee is enforceable. The guarantor, however, does not waive receipt of notice of default on the part of the Franchisor.
This waiver is part of a broader guarantee where FB HOLDINGS, LLC, absolutely and unconditionally guarantees to assume the duties and obligations of PUMP IT UP HOLDINGS, LLC under its franchise registration and Franchise Agreement. This guarantee remains in effect until all obligations of the Franchisor are satisfied or the Franchisor's liability to its franchisees is completely discharged. The guarantee is binding on the Guarantor and its successors and assigns.
In practical terms, this means that if Pump It Up faces financial or legal issues that prevent it from fulfilling its obligations to franchisees, FB HOLDINGS, LLC is legally bound to step in and assume those responsibilities. The waiver of notice of acceptance ensures that the guarantee is immediately effective without any additional notification requirements. However, the guarantor is still entitled to a notice of default.
Prospective franchisees should understand the implications of this guarantee, as it provides an additional layer of security knowing that a separate entity is committed to ensuring Pump It Up fulfills its obligations. Franchisees may want to further investigate the financial stability and capacity of FB HOLDINGS, LLC to meet these obligations should the need arise.