What happens if Pump It Up specifies for your Franchised Business?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
iding services or the packaging and delivery of products authorized for sale at Pump It Up Businesses.
If specified for your Franchised Business, you must purchase the Proprietary Products or any other specified fixture, equipment, inventory, marketing materials, or supplies, only from us or a third party designated and licensed by us to prepare and sell such products ("Designated Vendors"). From time to time, we may modify the list of PIU Vendors.
We may choose, in our sole discretion, to designate any vendor as a "Preferred National Vendor" for meeting certain criteria established by us. We reserve the right to require that you use a Preferred National Vendor for the purchase of specified fixtures, equipment, inventory, marketing materials, or supplies. We may work with these Preferred National Vendors to establish prices, products, shipping costs, contracts, and other agreements as at our discretion.
Dependent on restrictions for purchasing products and services from our Designated Vendors and/or Preferred National Vendors, you may also purchase products, equipment, materials, supplies and services from a vendor in the geographic area near your Premises (a "Local Vendor"). All such purchases from any such Local Vendors should be for high quality products, equipment, materials, supplies and services, and should be up to our System Standards. We reserve the right to override your decision to use your selected Local Vendor if we determine, in our sole discretion, that the Local Vendor does not meet the high requirements of the System Standards.
If you propose to purchase any products, equipment, materials, supplies or services that you are not required to purchase from us or an affiliate of ours, all such products, equipment, supplies or services must be fully compliant with our System Standards. If such purchases will be from a vendor that we have not previously worked with, we reserve the right to require you or the vendor itself submit to us a written request for our review of that vendor and its products, equipment, materials, or services to confirm whether such are compliant with our System Standards.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, if Pump It Up specifies certain products for your franchised business, you must purchase proprietary products or any other specified fixture, equipment, inventory, marketing materials, or supplies only from Pump It Up or a third party that Pump It Up designates and licenses to prepare and sell such products, known as "Designated Vendors." Pump It Up may modify the list of PIU Vendors from time to time.
Pump It Up also reserves the right to require franchisees to implement any System Standards within a specified time period. These standards may involve refurbishing or remodeling the premises, buying new operating assets, adding new products or services, or otherwise modifying the nature of operations. Pump It Up may also designate "Preferred National Vendors" and require franchisees to purchase specified items from them. Pump It Up may work with these vendors to establish prices, products, shipping costs, contracts and other agreements at their discretion.
Pump It Up estimates that purchases or leases from Designated Vendors and/or Preferred National Vendors will represent approximately 19% to 39% of your total purchases in the establishment of your Franchised Business and 12% to 14% of your total purchases in your continuing operation of your Franchised Business. Pump It Up also reserves the right to change the System Standards and inform franchisees of any changes in the manuals accessible online or via other electronic formats. Franchisees are expected to implement all relevant updates and amendments to the manuals or System Standards as described in newsletters or any other notices distributed through written means.