What is the initial length of the restrictive period for Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) For purposes of this Agreement, the term "Restrictive Period" shall be two years from the date the Franchise Agreement expires or is terminated; provided however, that if a court determines that such period is unenforceable, the Restrictive Period shall end one year from the date the Franchise Agreement expires or is terminated; provided however, that if a court determines that such period is unenforceable, the Restrictive Period shall end six months from the date the Franchise Agreement expires or is terminate.
(4) During the term of this Agreement, there is no geographical limitation on the restrictions contained in this Section 18.B.
During the Restrictive Period, these restrictions will apply at the Premises; within a 5-mile radius of the outer boundaries of the Protected Area; and within 5 miles of any other Pump It Up Business in operation or under construction on the later of: (i) the date of the termination or expiration of this Agreement; or (ii) the date on which all persons restricted by Section 18.B. begin to comply with Section 18.B.
- (5) If, at any time during the Restrictive Period, you or your owners fail to comply with your obligations contained in this Section 18.B., that period of noncompliance will not be credited toward the satisfaction of your obligations under this Section 18.B.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, the initial restrictive period is two years following the expiration or termination of the Franchise Agreement. This means that after the franchise agreement ends, the franchisee is restricted from certain activities for two years. However, this period can be reduced if a court deems the initial two-year period unenforceable.
Specifically, if a court finds the two-year period to be unenforceable, the restrictive period will be reduced to one year from the date of expiration or termination. Furthermore, if the one-year period is also deemed unenforceable by a court, the restrictive period will be further reduced to six months from the date the Franchise Agreement expires or is terminated.
During the restrictive period, the restrictions apply at the franchise's premises, within a 5-mile radius of the outer boundaries of the protected area, and within 5 miles of any other Pump It Up Business in operation or under construction. It's important to note that any period of noncompliance with these restrictions will not be credited toward fulfilling the obligations under the restrictive covenant. This means that if a franchisee violates the restrictions, the clock doesn't stop ticking; the franchisee must still comply for the full duration of the enforceable restrictive period.