Does the Pump It Up non-compete apply to the franchisee's owners as well as the franchisee?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) You agree that, during the term of this Agreement and for the "Restrictive Period" (defined below) following the expiration or earlier termination of this Agreement, you and your owners, either directly or indirectly, for yourself, or through, on behalf of, or in conjunction with, any person, firm, partnership, corporation, limited liability company, or other entity, will not:
(a) own, maintain, operate, engage in, franchise or license, advise, help, make loans to, or have any direct or indirect controlling or non-controlling interest as an owner (whether of record, beneficially, or otherwise) or be or perform services as a partner, director, officer, manager, employee, consultant, representative, or agent in any Competing Business; or
(b) divert or attempt to divert, by direct or indirect inducement or otherwise, any actual or potential business, employee, agent or customer of any Pump It Up Business to a Competing Business.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, the non-compete agreement does indeed apply to both the franchisee and their owners. Specifically, during the term of the Franchise Agreement and for a defined "Restrictive Period" after the agreement's expiration or termination, both the franchisee and their owners are restricted from engaging in or having an interest in any "Competing Business."
The term "Competing Business" is defined as children's entertainment centers or recreation/entertainment businesses with similar operations or trade dress to the Pump It Up system. The restrictions prevent franchisees and their owners from owning, operating, franchising, advising, or having any direct or indirect interest in such competing businesses. They are also barred from performing services for these businesses as partners, directors, officers, managers, employees, consultants, representatives, or agents.
This non-compete extends to preventing the diversion of business, employees, agents, or customers from any Pump It Up Business to a Competing Business. The franchisor emphasizes that these restrictions will not hinder the franchisee's or their owners' ability to earn a living, as they possess general skills applicable outside of Competing Businesses. However, in Washington state, Section 18.B of the Franchise Agreement, which contains these non-compete clauses, does not apply.