If Pump It Up leases the premises from me, how is the rent determined?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
If you own the Premises, we, at our option, may purchase the fee simple interest or, upon purchase of the other Assets, enter into a standard lease with you on terms comparable to those for which similar commercial properties in the area are then being leased; or remove the Assets from the Premises.
The initial term of the Lease between you and us under such circumstances must be at least 10 years with 2 options to renew of 5 years each, and the rent must be the fair market rental value of the Premises.
If you and we cannot agree on the fair market rental value of the Premises, then local real estate appraisers (selected in the manner described in Section 21.C.) will determine the rental value.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, if you own the premises and Pump It Up chooses to lease it from you, the rent will be the fair market rental value of the premises. The initial term of the lease must be at least 10 years, with two 5-year renewal options.
If you and Pump It Up cannot agree on the fair market rental value, local real estate appraisers will determine the rental value. These appraisers will be selected as described in Section 21.C of the Franchise Agreement, though the specific details of that section are not provided in this excerpt.
This arrangement ensures that the rental terms are comparable to similar commercial properties in the area, providing a fair return for the franchisee while allowing Pump It Up to secure the location for an extended period. The use of independent appraisers in case of disagreement helps to avoid disputes and ensures an objective valuation of the property.