What is Pump It Up's primary reason for providing site-selection assistance?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge and agree that our approval of a site does not constitute a representation or warranty of any kind, express or implied, of the site's suitability for a Pump It Up Business or for any other purpose.
Our approval indicates only that we believe that the site meets our then-current
site selection criteria. Applying criteria that have appeared effective with other sites might not accurately reflect the potential for all sites (including your site), and demographic and/or other factors included in or excluded from our criteria could change, altering the potential viability of a site. The uncertainty and instability of these criteria are beyond our control, and we are not responsible if a site we approve fails to meet your expectations. You acknowledge and agree that: (a) your submission of a proposed site for our acceptance is based on your own independent investigation of the site's suitability for the Franchised Business; and (b) our site-selection assistance is primarily for our benefit to assure us that we will have a minimally acceptable site upon the expiration or termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, while franchisees are responsible for selecting their site, Pump It Up does offer site-selection assistance. However, the primary reason Pump It Up provides this assistance is not necessarily for the direct benefit of the franchisee.
The FDD states that Pump It Up's site-selection assistance is mainly for their own benefit. Pump It Up wants to ensure that, upon the expiration or termination of the franchise agreement, they will have a minimally acceptable site. This suggests that Pump It Up is protecting its long-term interests and brand presence in the event that the franchise relationship ends.
This arrangement has implications for prospective franchisees. While Pump It Up will provide guidance and criteria for site selection, the ultimate decision lies with the franchisee, who also bears the costs and risks associated with securing and developing the location. Franchisees should conduct their own thorough investigation of a site's suitability, as Pump It Up's approval only indicates that the site meets their minimum criteria at that time. The FDD explicitly states that Pump It Up does not guarantee the site's suitability or success and is not responsible if an approved site fails to meet the franchisee's expectations.
Pump It Up franchisees need to be aware that the franchisor's interests may not perfectly align with their own when it comes to site selection. While Pump It Up's criteria may offer a starting point, franchisees must perform their own due diligence and consider factors relevant to their specific business goals and local market conditions. Engaging a local real estate broker is recommended by Pump It Up to assist in the selection process.