Must all insurance policies for a Pump It Up franchise be written by a licensed insurance company?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
All insurance policies must be written by an insurance company that is licensed in the state where your Franchised Business is located. All insurance policies must also meet our minimum standards and specifications as provided here in the FDD, in your Franchise Agreement, in the Manuals, or otherwise stated to you in writing. We may from time to time increase the minimum required coverage and/or modify or require different or additional insurance coverage (including an additional umbrella liability insurance policy) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. We will provide you with written notice of such modifications and you must take prompt action to secure the additional coverage or higher policy limits. All insurance policies must name us and any affiliates we designate as additional named insureds and provide for 30 days' prior written notice to us of a policy's material modification, cancellation or expiration.
Each insurance policy you obtain shall be specifically endorsed to provide that the coverage shall be primary and that any insurance carried by any additional insured shall be excess and non-contributory. At least 10 days prior to commencing construction of the Franchised Business or 3 days before taking ownership of an existing open Pump It Up Franchised Business, and annually thereafter, you must submit to us a copy of all of your Certificates of Insurance or other evidence that you are maintaining this insurance coverage and paying premiums. If you obtain claims-made insurance policies, you must obtain tail coverage for at least four years after the end of any policy period in question or as otherwise set forth in your Franchise Agreement, the Manuals, or provided to you in writing. If you fail or refuse to obtain and maintain the insurance we specify, in addition to our other remedies, we may obtain such insurance for you and the Franchised Business. If we obtain insurance for you due to your failure or refusal to obtain or maintain the required insurance, or your failure or refusal to provide us with adequate evidence of holding such required insurance, you must cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a reasonable fee for our time incurred in obtaining such insurance.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, all insurance policies must be written by an insurance company that is licensed in the state where the franchised business is located. These policies must also meet Pump It Up's minimum standards and specifications as provided in the FDD, the Franchise Agreement, the Manuals, or otherwise stated in writing. Pump It Up retains the right to increase the minimum required coverage and/or modify or require different or additional insurance coverage at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances.
Pump It Up will provide franchisees with written notice of such modifications, and franchisees must take prompt action to secure the additional coverage or higher policy limits. All insurance policies must name Pump It Up and any affiliates they designate as additional named insureds and provide for 30 days' prior written notice to them of a policy's material modification, cancellation, or expiration.
Before commencing construction of the franchised business or 3 days before taking ownership of an existing open Pump It Up franchised business, and annually thereafter, franchisees must submit to Pump It Up a copy of all Certificates of Insurance or other evidence that they are maintaining this insurance coverage and paying premiums. If franchisees obtain claims-made insurance policies, they must obtain tail coverage for at least four years after the end of any policy period in question or as otherwise set forth in the Franchise Agreement, the Manuals, or provided to them in writing. If a franchisee fails or refuses to obtain and maintain the insurance Pump It Up specifies, Pump It Up may obtain such insurance for the franchisee and the franchised business. The franchisee must then cooperate with Pump It Up and reimburse them for all premiums, costs, and expenses incurred in obtaining and maintaining the insurance, plus a reasonable fee for their time incurred in obtaining such insurance.