Does the non-compete agreement apply after a transfer of a Pump It Up franchise?

According to Pump It Up's 2025 Franchise Disclosure Document, the non-compete restrictions do apply after a franchise is transferred. Specifically, the FDD states, "These restrictions also apply after Transfers, as provided in Section 16.B.(3) above." This means that both the seller (the original franchisee) and their owners are subject to certain limitations on their activities after the transfer is completed.

The restrictions imposed on the transferring franchisee include agreeing not to engage in activities prohibited in Section 18.B for two years from the transfer date. Additionally, they cannot use any Pump It Up marks or indicia. This prevents the seller from immediately opening a competing business and leveraging the brand recognition they gained as a Pump It Up franchisee.

These non-compete terms are in place to protect Pump It Up's brand and business interests. By enforcing these restrictions, Pump It Up aims to prevent former franchisees from using their knowledge and experience gained within the system to unfairly compete against existing franchisees. Prospective franchisees should carefully review Section 18.B and Section 16.B.(3) to fully understand the scope and duration of these post-transfer restrictions.