What is Pump It Up's obligation regarding the standards under which the Marks are used by its franchisees?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
In the Franchise Agreement, we grant you the right to operate the Franchised Business under the name "Pump It Up" and to use our other current or future Marks that we designate in the operation of your Franchised Business. Under a Trademark License Agreement with our parent, FB Holdings, LLC, we have the exclusive right to use and permit our franchisees to use the name and mark "Pump It Up" in addition to certain related trademarks, service marks and other commercial symbols. The term of the License Agreement is perpetual in duration, however, FB Holdings, LLC has the right to terminate the License Agreement following a cure period if we commit a breach of the License Agreement by not policing the standards under which the Marks are used by our franchisees. In the event of a termination of the License Agreement, our rights and obligations under all Franchise Agreements are deemed to be assigned to FB Holdings, LLC to provide continuity of operations to our franchisees.
Source: Item 13 — TRADEMARKS (FDD pages 43–45)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up is responsible for policing the standards under which its franchisees use the brand's Marks. This obligation stems from a Trademark License Agreement Pump It Up has with its parent company, FB Holdings, LLC, which grants Pump It Up the exclusive right to use and permit its franchisees to use the "Pump It Up" name and related trademarks. If Pump It Up fails to maintain these standards, FB Holdings, LLC has the right to terminate the License Agreement following a cure period.
This obligation is significant for prospective Pump It Up franchisees because the continued use of the "Pump It Up" name and associated Marks is crucial for operating the franchised business. If the License Agreement were terminated due to Pump It Up's failure to police the standards, the rights and obligations under all Franchise Agreements would be assigned to FB Holdings, LLC, ensuring continuity of operations. This arrangement protects franchisees from potential disruptions caused by Pump It Up's failure to uphold brand standards.
Franchisees are required to adhere to Pump It Up's rules when using the Marks and must notify Pump It Up immediately of any apparent infringement or challenges to the use of any Mark. Pump It Up retains exclusive control over any litigation or proceedings concerning the Marks and will protect franchisees against claims of infringement or unfair competition, provided the franchisees use the Marks in compliance with the Franchise Agreement and promptly notify Pump It Up of any claims. This framework ensures that the brand's trademarks are protected and that franchisees can operate under the "Pump It Up" name with confidence.