How long is the 'Restrictive Period' after the expiration or termination of a Pump It Up franchise agreement?
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 Pump It Up's 2025 Franchise Disclosure Document, the Restrictive Period lasts for two years following the expiration or termination of the Franchise Agreement. During this time, franchisees face certain restrictions to protect Pump It Up's business interests. These restrictions include prohibitions on operating or being involved with competing businesses within specified geographic areas.
However, the duration of the Restrictive Period is subject to judicial review. If a court determines that the initial two-year period is 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 shortened again to six months from the date the Franchise Agreement expires or is terminated.
During the Restrictive Period, the restrictions apply at the franchise location, within a 5-mile radius of the outer boundaries of the Protected Area, and within 5 miles of any other Pump It Up location in operation or under construction. It's also important to note that any period of noncompliance with these restrictions will not count towards fulfilling the obligations under the Restrictive Period. These restrictions also apply after Transfers, as provided in Section 16.B.(3) above.