How does non-compliance with the non-compete obligations affect the duration of the Restrictive Period for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 the 2025 Pump It Up Franchise Disclosure Document, if a franchisee fails to comply with their non-compete obligations during the Restrictive Period, the period of non-compliance will not count towards fulfilling their obligations under the non-compete agreement.
In practical terms, this means that any time a Pump It Up franchisee spends in violation of the non-compete terms will effectively extend the duration of their non-compete obligations. The Restrictive Period is typically two years from the date the Franchise Agreement expires or is terminated. However, if a court finds this period unenforceable, it could be reduced to one year or even six months.
This provision ensures that franchisees cannot circumvent their non-compete obligations by briefly complying, violating the agreement, and then claiming the Restrictive Period has elapsed. Franchisees need to be aware that any breach of the non-compete terms will prolong the time they are restricted from engaging in competing businesses after leaving the Pump It Up franchise system.