Does the Pump It Up indemnity obligation continue after the termination or expiration of the Franchise Agreement?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. Continuing Obligations. All of our and your (and your owners') obligations which expressly or by their nature survive this Agreement's expiration or termination will continue in full force and effect subsequent to and notwithstanding the expiration or termination and until the obligations are satisfied in full or by their nature expire.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, the obligations of both Pump It Up and the franchisee, including indemnity obligations, can continue after the termination or expiration of the Franchise Agreement. Specifically, any obligations that expressly state they survive the agreement's end, or by their nature would logically extend beyond the agreement, will remain in effect. This continuation lasts until these obligations are fully satisfied or naturally expire.
For a prospective Pump It Up franchisee, this means that certain responsibilities and duties outlined in the Franchise Agreement do not simply vanish once the agreement term ends. These may include financial obligations, adherence to non-compete clauses, or the duty to protect Pump It Up's confidential information. The exact nature of these continuing obligations would depend on the specific terms of the Franchise Agreement and the circumstances of termination or expiration.
This clause ensures that both Pump It Up and the franchisee are held accountable for commitments made during the franchise relationship, even after the formal agreement has concluded. It is important for franchisees to carefully review the Franchise Agreement to understand which obligations are designed to survive termination or expiration, as these could have long-term implications for their business and personal liabilities.