Does the landlord have to consent to a collateral assignment of the lease to Pump It Up or its designee?

According to the 2025 Pump It Up Franchise Disclosure Document, the landlord must consent to the collateral assignment of the lease to Pump It Up or its designee. The landlord's consent is required for Pump It Up to have the option to assume the lease if the franchisee defaults. This consent from the landlord allows Pump It Up, but does not obligate them, to take over the lease from the date they take possession of the premises. This transfer can occur without any assignment fee, similar charge, or increase in rental payments to the landlord.

This provision is crucial for Pump It Up as it provides a mechanism to maintain control over the location and continue operations if a franchisee fails. For a prospective franchisee, this highlights the importance of securing a lease that aligns with the franchisor's requirements and ensures the franchisor's ability to step in if necessary. The franchisee should understand that the landlord's cooperation is essential for this arrangement to be effective.

Pump It Up includes a standard form of Collateral Assignment of Lease as an exhibit to the Franchise Agreement. This form likely outlines the specific terms and conditions under which the landlord agrees to the collateral assignment. Franchisees should carefully review this form and ensure they understand their obligations and the landlord's commitments. This arrangement protects Pump It Up's interests and ensures the continuity of the franchise system, while also potentially adding a layer of complexity to lease negotiations for the franchisee.