What is the process for Pump It Up requiring a franchisee to remodel or re-equip the Premises?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
rmination that the continued operation of the Franchised Business by you will result in imminent danger to public health or safety, we may terminate this Agreement pursuant to Section 19.A.(10) or, in our sole
discretion, we may require you to close the Franchised Business temporarily to make the necessary repairs or alterations.
- (4) Upon receipt of notice from us, you agree to remodel, expand, redecorate, re-equip and/or refurnish the Premises and the Franchised Business to conform the Franchised Business to the image of the System for new Pump It Up Businesses. If any single modification, with the exception of new Arena equipment or new party equipment, exceeds $10,000, then you will have 6 months to comply with such modifications. Except as described below, we will not require a major redesign of the Franchised Business that will cost more than $10,000 more than twice during the Initial Term of this Agreement. In the event we determine, in our sole discretion, that you cannot amortize the cost of the major redesign over the remaining years of the Initial Term, we may agree to extend the Initial Term of this Agreement for the sole purpose of allowing such expenditure to occur. If a major redesign of the Premises is required by the Americans with Disabilities Act or any new safety standards that are enacted by PIU or any governmental or regulatory agency, you will be required to complete that redesign within a reasonable time period, regardless of the cost of compliance.
- (5) If you are executing this Agreement in conjunction with your acquisition of an existing Franchised Business, prior to assuming operations of the Franchised Business, you may be required to update the Franchised Business to comply with our then-existing System Standards including brand attributes. The updates that you may be required to complete include, but are not limited t
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the franchisor has the right to require franchisees to remodel, expand, redecorate, re-equip, and/or refurnish their premises to conform to the image of the Pump It Up system for new businesses. If any single modification, excluding new arena or party equipment, exceeds $10,000, the franchisee has six months to comply. Pump It Up will generally not require a major redesign costing more than $10,000 more than twice during the initial 10-year term of the agreement. However, this limit does not apply to modifications required by the Americans with Disabilities Act (ADA) or new safety standards. In such cases, franchisees must complete the redesign within a reasonable time period, regardless of the cost.
If Pump It Up determines that a franchisee cannot amortize the cost of a major redesign over the remaining years of the initial term, they may agree to extend the initial term to allow the expenditure to occur. This provision aims to provide flexibility for franchisees facing significant remodeling costs, ensuring they have sufficient time to recoup their investment. The FDD stipulates that if a franchisee is acquiring an existing Pump It Up business, they may be required to update the premises to comply with the franchisor's then-existing system standards, including a Brand Refresh Package, new external signage, and other changes required of new franchises.
The franchisee is responsible for the expenses associated with these updates, paying directly to the vendors providing the services and products. This ensures that the franchisee has control over the selection of vendors and the management of the remodeling process. Pump It Up provides franchisees with mandatory and suggested specifications and layouts for the business, including requirements for dimensions, design, image, interior layout, décor, fixtures, equipment, signs, furnishings, and color scheme. Franchisees must retain a licensed architect to develop construction drawings and ensure compliance with the ADA and other applicable regulations. Franchisees must send construction plans to Pump It Up for review before starting construction and provide revised plans during construction. Pump It Up reserves the right to inspect the premises during construction to ensure compliance.