What happens if we approve a proposed Transfer for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
eneral release, in a form satisfactory to us, which releases any and all claims against us and our affiliates, officers, directors, employees, and agents; and
(h) you must modify and/or upgrade certain equipment, safety features, and computer hardware or software to our then-current standards prior to the closing of the proposed transfer.
(2) If we approve a proposed Transfer, prior to the Transfer becoming effective:
(a) you or the proposed transferee must pay to us the balance of the Transfer Fee to reimburse us for reasonable expenses associated with reviewing the Transfer. The Transfer Fee will be waived if the proposed transferee: (1) is an Entity formed by you for the convenience of ownership as set forth in Section 16.C.; or (2) has obtained the Franchised Business as a result of your death or permanent incapacity as provided in Section 16.D.;
(b) if the proposed transferee comes through an investigation process with a franchise sales broker that we have retained, then the transferee must pay our then-current Initial Franchise Fee instead of the Transfer Fee. This enables us to pay the additional costs we incur with a franchise sales broker, including the payment of the broker's commissions.
(c) you and the proposed transferee must sign either an assignment agreement and any amendments to this Agreement deemed necessary or desirable by us to reflect the Transfer, or our then-current standard form of franchise agreement for an initial term ending on the expiration date of the Initial Term of this Agreement. We will choose which documents you and the proposed transferee are required to sign. In either event, if the proposed transferee is an Entity, the transferee must complete Exhibit 4 as required by Section 14.B. and all individuals identified in Section 14.C. must sign the guaranty attached as Exhibit 5;
(d) the proposed transferee must sign our then-current Software License Agreement; and
(e) you (and all of your owners) must, at our request, sign a written guaranty pursuant to which you will remain liable for all obligations to us incurred before the date of the Transfer.
(3) Following the effective date of the Transfer:
(a) you and your transferring owners agree not to engage in any of the activities proscribed Section 18.B. below, for a period of 2 years, beginning on the effective date of the Transfer; and
(b) you and your transferring owners will not use any Mark, any colorable imitation of a Mark, or other indicia of a Pump It Up Business in any manner or for any purpose; or utilize for any purpose any trade name, trade or service mark, or other commercial symbol that suggests or indicates a connection or association with us.
C. Transfer for Convenience of Ownership.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, if Pump It Up approves a proposed franchise transfer, several actions must occur before the transfer becomes effective. First, either the current franchisee or the proposed new franchisee must pay Pump It Up the balance of the Transfer Fee to cover the expenses associated with reviewing the transfer. The Transfer Fee is waived if the transferee is an entity formed by the franchisee for convenience of ownership or if the business was obtained due to the franchisee's death or permanent incapacity.
If the proposed transferee is found through a franchise sales broker retained by Pump It Up, the transferee must pay the then-current Initial Franchise Fee instead of the Transfer Fee. This covers the additional costs Pump It Up incurs with the broker, including commissions. Additionally, both the current franchisee and the proposed transferee must sign either an assignment agreement with necessary amendments or Pump It Up's current standard franchise agreement for the remainder of the initial term. Pump It Up will decide which documents are required. If the transferee is an entity, they must complete Exhibit 4, and individuals identified in Section 14.C must sign the guaranty attached as Exhibit 5.
Furthermore, the proposed transferee must sign Pump It Up's current Software License Agreement. The current franchisee and their owners must also sign a written guaranty, if requested by Pump It Up, to remain liable for all obligations incurred before the transfer date. After the transfer, the franchisee and their owners cannot engage in activities proscribed in Section 18.B for two years from the transfer date. They also cannot use any Pump It Up marks or indicia, or any trade names or symbols suggesting a connection with Pump It Up.