What happens to the Protected Area rights of a Pump It Up franchisee upon termination?

According to the 2025 Pump It Up Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee's limited exclusive rights in the Protected Area immediately terminate. This means that Pump It Up gains the right to operate, or license others to operate, Pump It Up businesses anywhere within the previously protected area. This loss of exclusive rights is a significant consequence of termination for a Pump It Up franchisee.

This provision allows Pump It Up to re-enter the market area and potentially compete directly with the former franchisee or introduce new franchisees into the area. The former franchisee no longer has any territorial protection and must cease operating as a Pump It Up business. This can severely impact the value of the former franchisee's business assets and their ability to recoup their initial investment.

In addition to losing the Protected Area rights, the franchisee must also discontinue all use of the Pump It Up Marks, pay all outstanding sums, and adhere to the covenants outlined in Section 18 of the agreement. These obligations further emphasize the comprehensive nature of the termination process and the complete separation required between the franchisee and the Pump It Up franchise system.