What post-termination obligations are Pump It Up franchisees subject to after a hold-over period?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
If for any reason, you continue to operate your Pump It Up Business beyond the Initial Term of this Agreement or any subsequent renewal period, it shall be deemed to be on a month-to-month basis under the terms of this Agreement and subject to termination upon 30 days' notice or as required by law (the Initial Term and all renewals shall be referred to as the "Term").
If said hold-over period exceeds 90 days, this Agreement is subject to immediate termination unless applicable law requires a longer period.
Upon termination after any hold-over period, you and those in active concert with you, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 18.A, 18.B(3), 20.A., and 21 of this Agreement and all other applicable post-termination obligations contained in this Agreement.
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 continues to operate their Pump It Up business beyond the initial term or any renewal period on a month-to-month basis (a "hold-over period"), and that hold-over period exceeds 90 days, the franchise agreement is subject to immediate termination. Upon such termination, the franchisee and those associated with them are subject to specific post-termination obligations outlined in Sections 18.A, 18.B(3), 20.A, and 21 of the Franchise Agreement, as well as all other applicable post-termination obligations contained within the agreement.
These post-termination obligations likely include restrictions on operating a competing business, protecting confidential information, and adhering to non-compete clauses. Franchisees should carefully review Sections 18.A, 18.B(3), 20.A, and 21 of the Franchise Agreement to fully understand the scope of these obligations. The specific terms in these sections will dictate what actions a former franchisee can and cannot take after the termination of the agreement, especially concerning competitive activities and the use of Pump It Up's proprietary information.
The FDD specifies that these post-termination obligations apply to the franchisee and those in active concert with them, including family members, officers, directors, partners, and managing agents. This broad application means that the restrictions extend beyond just the franchisee themselves, impacting others closely associated with the business. Franchisees need to be aware of these extended obligations and ensure that all relevant parties understand and comply with them to avoid potential legal issues after the franchise agreement is terminated.