For Pump It Up, is the guaranty from FB Holdings, LLC absolute and unconditional?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You have not been provided with financial statements of the Franchisor, Pump It Up Holdings, LLC. Therefore, you do not have knowledge of how this specific company has performed. However, FB Holdings, LLC has agreed absolutely and unconditionally to guarantee to assume the duties and obligations of Franchisor under the franchise agreements entered into by Franchisor should Franchisor become unable to perform its duties and obligations. A copy of FB Holdings, LLC's guaranty is included with Exhibit G.
GUARANTEE OF PERFORMANCE
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.
The Guarantor executes this guarantee at Phoenix, Arizona on this 14 day of April 2025.
Guarantor: FB HOLDINGS, LLC
Name: Lauren Tebbenhoff
Title: President
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, FB Holdings, LLC, the parent company of Pump It Up Holdings, LLC, provides a guarantee to assume the duties and obligations of the franchisor. This guarantee is explicitly stated to be absolute and unconditional. This means that FB Holdings, LLC is fully committed to ensuring that Pump It Up Holdings, LLC fulfills its responsibilities under the franchise agreements. A copy of FB Holdings, LLC's guaranty is included with Exhibit G. 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. The Guarantor executes this guarantee at Phoenix, Arizona on this 14 day of April 2025. Guarantor: FB HOLDINGS, LLC. Name: Lauren Tebbenhoff. Title: President.
For a prospective Pump It Up franchisee, this guarantee offers a significant layer of security. Should Pump It Up Holdings, LLC, for any reason, become unable to perform its duties as the franchisor, FB Holdings, LLC is legally bound to step in and fulfill those obligations. This could include providing ongoing support, upholding the terms of the franchise agreement, and ensuring the continuity of the Pump It Up franchise system. This arrangement mitigates some of the risk associated with investing in a franchise, as the franchisee has recourse to a larger, more established entity if the franchisor faces difficulties.
The guarantee remains in effect until all obligations of Pump It Up Holdings, LLC 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.
It is important for potential franchisees to carefully review the full guarantee document (Exhibit G) to understand the scope and limitations of this protection. While the guarantee is described as 'absolute and unconditional,' the specific terms and conditions outlined in the agreement will define the exact extent of FB Holdings, LLC's obligations. Franchisees should pay close attention to the conditions under which the guarantee is triggered and the specific duties that FB Holdings, LLC is obligated to assume. Understanding these details is crucial for assessing the true value and security that the guarantee provides.