For Pump It Up, what happens if Pump It Up Holdings, LLC is unable to fulfill its obligations?
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.
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, has agreed to guarantee the obligations of Pump It Up Holdings, LLC. This means that if Pump It Up Holdings, LLC is unable to perform its duties and obligations under the franchise agreements, FB Holdings, LLC will step in to assume those responsibilities. A copy of FB Holdings, LLC's guaranty is included as an exhibit to the FDD.
This 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 Pump It Up Holdings, LLC to its franchisees under the Franchise Agreement has been completely discharged. The guarantee ensures that franchisees have recourse to FB Holdings, LLC should Pump It Up Holdings, LLC fail to meet its obligations.
This type of parental guarantee is a fairly common practice in franchising, especially when the direct franchisor is a newly formed entity or has limited operating history. It provides an added layer of security for franchisees, knowing that a more established entity stands behind the franchisor's commitments. Prospective franchisees should carefully review the specifics of the guaranty agreement to fully understand the scope of FB Holdings, LLC's obligations and any limitations that may apply.