What is the legal structure of FB HOLDINGS, LLC, the Guarantor for Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
FB Holdings, LLC and Subsidiaries (the Company), an Arizona limited liability company, was formed in September 2013 for the purpose of acquiring essentially all of the assets, including certain membership interests, and assuming certain liabilities of PIU Management, LLC and Subsidiaries. The Company is a franchisor of programs to operate private children's play and party facilities within specified geographic areas throughout the United States using the Pump It Up and BounceU trademarks and designs. The Company assists the franchisees in the start-up process and offers ongoing support.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, FB HOLDINGS, LLC, which acts as the Guarantor for Pump It Up, is an Arizona limited liability company. It was formed in September 2013 to acquire the assets and liabilities of PIU Management, LLC and Subsidiaries. As the parent company of Pump It Up Holdings, LLC, FB HOLDINGS, LLC provides a guarantee of performance, ensuring that the franchisor meets its obligations under the franchise agreement and franchise registrations. This guarantee remains in effect until all obligations are satisfied or the franchisor's liability to its franchisees is completely discharged.
This legal structure and guarantee have significant implications for prospective Pump It Up franchisees. The guarantee from FB HOLDINGS, LLC provides an added layer of security, assuring franchisees that the franchisor has the financial backing to fulfill its commitments. This is particularly important in the franchise industry, where the success of individual franchisees often depends on the support and resources provided by the franchisor. The fact that FB HOLDINGS, LLC is the parent company further solidifies this assurance, as it aligns the interests of the guarantor with the success of the Pump It Up franchise system.
For a potential franchisee, understanding the guarantor's role and financial stability is crucial. The guarantee ensures that even if Pump It Up Holdings, LLC faces financial difficulties, FB HOLDINGS, LLC is obligated to step in and fulfill the franchisor's duties. This can protect the franchisee's investment and business operations. Furthermore, the FDD includes audited financial statements of FB HOLDINGS, LLC, allowing prospective franchisees to assess the financial health of the guarantor. This transparency is a positive sign, indicating that Pump It Up is willing to provide franchisees with the information needed to make an informed decision.
In summary, the legal structure of FB HOLDINGS, LLC as an Arizona limited liability company and its role as the Guarantor for Pump It Up provide a level of financial security and assurance for franchisees. This arrangement is designed to protect franchisees' interests and ensure the stability of the Pump It Up franchise system. Prospective franchisees should carefully review the financial statements of FB HOLDINGS, LLC and understand the terms of the guarantee to fully appreciate the benefits and protections it offers.