What level of involvement is required from the franchisee (or Operating Principal/Multi-Unit Manager) in overseeing the operations of a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Management structure is a crucial element in the operation of a Pump It Up Business. If you are an Entity, you must appoint an Operating Principal. You or your Operating Principal will be responsible for overseeing and supervising the operation of the Franchised Business. If you or your affiliates own or control 5 or more franchised Pump It Up Businesses, we reserve the right to require you to utilize a Multi-Unit Manager (which may be you or your Operating Principal), upon the opening of your fifth franchised Pump It Up Business. The Multi-Unit Manager will be responsible for the management and operation of all of your Pump It Up Businesses and must complete our initial training program.
If you are an Entity, your Operating Principal must have at least a 10% ownership interest in the Entity. The Operating Principal will be the person with whom we will communicate on all major policy, financial, management and operational matters. The Operating Principal is the only person that we will recognize as having authority to communicate on behalf of the Franchisee unless you formally notify us in writing of a different person with authority.
You (or your Operating Principal or Multi-Unit Manager) must remain active in overseeing the operations of the Franchised Business, including, without limitation, regular, periodic visits to the Franchised Business and sufficient communications with us. Your communications with us are intended to ensure that the operations of the Franchised Business comply with the System Standards promulgated by us from time to time in the Manuals or otherwise in written or oral communications to you. You (or your Operating Principal or Multi-Unit Manager) will not engage in any other business or activity that conflicts with your obligations to operate the Franchised Business. You have the sole responsibility for recruiting, hiring, and training employees for the Franchised Business. Before you hire any employee for the
Franchised Business, you must require that employee to sign a non-disclosure and confidentiality agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATIONS OF THE FRANCHISED BUSINESS (FDD pages 46–47)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, active oversight of the franchised business is required from the franchisee, their Operating Principal, or a Multi-Unit Manager. This includes regular visits to the Pump It Up location and consistent communication with the franchisor to ensure compliance with System Standards, as outlined in the manuals or through written/oral communication.
For franchisees who are entities, an Operating Principal must be appointed with at least a 10% ownership interest. This individual serves as the primary contact for major policy, financial, management, and operational matters. If a franchisee owns five or more Pump It Up franchises, Pump It Up reserves the right to require the franchisee to utilize a Multi-Unit Manager, who may be the franchisee or the Operating Principal. The Multi-Unit Manager is responsible for managing all of the franchisee's Pump It Up businesses and must complete the initial training program.
The franchisee (or Operating Principal/Multi-Unit Manager) cannot engage in any other business activities that conflict with their obligations to operate the Pump It Up franchise. They have sole responsibility for recruiting, hiring, and training employees, and must ensure that all employees sign a non-disclosure and confidentiality agreement before being hired. Furthermore, the Operating Principal must successfully complete the initial training program and any additional training required by Pump It Up.