What happens if a Pump It Up franchisee loses the right to possession of the Premises?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will not take possession of the Pump It Up Business until and unless Franchisee defaults, and/or receives notice of default (and/or until there is a termination, cancellation or rescission of Franchisee's rights) under the Lease, any sublease, any other document or instrument, or otherwise. In such event, Franchisor (or its designee) shall have the right (but not the obligation) to take possession of the Pump It Up Business, expel Franchisee from the Pump It Up Business, and, in such event, Franchisee shall have no further right, title or interest in or under the Lease or to the Pump It Up Business, all such rights thereby passing to Franchisor or its designee, in each case without Landlord's further consent. Franchisee agrees to do all acts necessary or appropriate to accomplish such assignment on Franchisor's request.
Franchisee agrees that it will not suffer or permit any surrender, termination, amendment or modification of the Lease without the prior written consent of Franchisor. Throughout the term of the Franchise Agreement, Franchisee agrees that it shall elect and exercise all options to extend the term of, or renew or assume in bankruptcy, the Lease not less than 30 days prior to the last day that any option must be exercised, unless Franchisor otherwise agrees in writing. If Franchisee fails to extend, renew, or assume the Lease, Franchisee hereby appoints Franchisor as its true and lawful attorney in fact to exercise such options for the sole purpose of effecting any extension, renewal or assumption, in each case for the account of Franchisee and without any liability or obligation of Franchisor.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 47–50)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, if a franchisee defaults or receives a notice of default under their lease, sublease, or any other relevant document, Pump It Up has the right, but not the obligation, to take possession of the Pump It Up Business. In such an event, the franchisee will be expelled from the business and will lose all rights, title, and interest in the lease and the Pump It Up Business, which will then pass to Pump It Up or its designee without requiring the landlord's further consent. The franchisee is obligated to take all necessary actions to facilitate this assignment at Pump It Up's request.
Pump It Up franchisees are prohibited from surrendering, terminating, amending, or modifying the lease without the prior written consent of Pump It Up. Throughout the term of the Franchise Agreement, franchisees must elect and exercise all options to extend the term of, or renew or assume in bankruptcy, the lease no less than 30 days prior to the last day that any option must be exercised, unless Pump It Up agrees otherwise in writing. If a franchisee fails to extend, renew, or assume the lease, they appoint Pump It Up as their attorney to exercise such options, for the account of the franchisee and without any liability or obligation of Pump It Up.
This arrangement ensures that Pump It Up can maintain control over the location and continue operating the business if the franchisee fails to meet their lease obligations. It also protects Pump It Up's interests by preventing franchisees from making unauthorized changes to the lease or allowing it to lapse. The franchisee bears the responsibility for maintaining the lease and must act proactively to renew or extend it, or risk losing their rights to the business location. This is a significant consideration for prospective franchisees, as the stability of their business location is heavily dependent on their adherence to lease terms and Pump It Up's oversight.