How many days does a Pump It Up franchisee have to cure monetary defaults?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the provisions of Section 19.B.(1), if you default in the payment of any monies owed to us or our affiliates when such monies become due and payable and you fail to pay such monies within 5 days after receiving written notice of default or immediately if payment has not been made within 30 days of its due date, then we may terminate this Agreement or pursue any of the other remedies available to us in accordance with Section 19.B.(2) upon written notice to you.
- (3) If you have received 2 or more notices of default within the previous 12- month period, we may send you a notice of termination or pursue any of the other remedies available to us in accordance with Section 19.B.(2) upon your next default within that 12-month period, without providing you an opportunity to remedy the default.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 47–50)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a franchisee typically has a limited time to correct a monetary default. Specifically, if a Pump It Up franchisee fails to pay monies owed to Pump It Up or its affiliates, they have a 5-day cure period after receiving written notice of the default. However, if payment is not made within 30 days of its due date, Pump It Up may immediately terminate the agreement or pursue other remedies.
This short cure period for monetary defaults underscores the importance of maintaining sound financial management. Franchisees must ensure timely payments to avoid immediate risk of termination. The FDD also states that if a franchisee has received two or more default notices within a 12-month period, Pump It Up may terminate the agreement without providing an opportunity to remedy the default for any subsequent default within that same 12-month period.
It is important to note that the standard cure period for other defaults is 30 days. However, the shorter 5-day cure period for monetary defaults, or immediate termination if payment is not made within 30 days of its due date, reflects the critical nature of financial obligations in maintaining the franchise agreement. Prospective franchisees should be aware of these stringent conditions and ensure they have sufficient financial resources and systems in place to meet all payment obligations promptly.