If Pump It Up resolves a customer complaint, what is the franchisee obligated to pay?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately resolve any customer complaints regarding the quality of service, products, cleanliness, and/or similar complaints of the Franchised Business. If any customer complaint cannot be immediately resolved, you must use best efforts to resolve the customer complaint as soon as practical and you must, whenever feasible, give the customer the benefit of the doubt. You must maintain a high level of customer service and adhere strictly to the System and our System Standards. You shall also be committed to maintaining System Standards. If we, in our sole discretion, determine that our intervention in a customer complaint is necessary or desirable to protect the System or the goodwill associated with the System, or if we, in our sole discretion, believe that you have failed adequately to address or resolve any customer complaint, we reserve the right, without your consent, to resolve any complaint and charge you an amount sufficient to cover our reasonable costs and expenses in resolving the customer complaint, which amount you must pay to us immediately on demand.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees are expected to resolve customer complaints about service, products, or cleanliness immediately. If immediate resolution isn't possible, the franchisee must use their best efforts to resolve the complaint as soon as practical, giving the customer the benefit of the doubt whenever feasible. Franchisees are obligated to maintain a high level of customer service and adhere strictly to Pump It Up's System Standards.
However, Pump It Up retains the right to intervene in customer complaints if they believe it's necessary to protect the System or its associated goodwill, or if they believe the franchisee has failed to adequately address the complaint. If Pump It Up intervenes and resolves a customer complaint, the franchisee must pay Pump It Up an amount sufficient to cover their reasonable costs and expenses in resolving the customer complaint.
This amount is due immediately upon demand from Pump It Up. This means that franchisees could face unexpected expenses if customer complaints escalate to the point where the franchisor needs to step in. It is important for prospective franchisees to understand the types of issues that might lead to franchisor intervention and to budget accordingly.