What is the 'Purchase Notice' for Pump It Up, as defined in the FDD?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Scope. Upon the expiration or termination of this Agreement for any reason, we will provide written notice to you, within 30 days after the effective date of termination or expiration, if we intend to exercise our option to purchase from you some or all of the assets used in the Franchised Business (the "Assets").
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up FDD, the Purchase Notice relates to Pump It Up's option to buy certain assets of a franchised business when the franchise agreement expires or terminates. Within 30 days after the termination or expiration date, Pump It Up must provide written notice if they intend to buy some or all of the assets used in the Pump It Up franchised business.
The assets Pump It Up may purchase include leasehold improvements, equipment, vehicles, furnishings, fixtures, signs, inventory (non-perishable products, materials, and supplies), real estate interests (fee simple rights or the lease), and any licenses needed to operate the franchised business. Pump It Up has the right to assign this purchase option to another party.
The purchase price will be the fair market value of the assets, or the fair market value of the lease for leased assets, determined as of the purchase date. This valuation will account for customary depreciation and the condition of the assets, but will not include any value for trademarks, service marks, commercial symbols, goodwill, or the business's "going concern" value. Pump It Up can exclude assets that don't meet the current standards for a Pump It Up business or for which the franchisee cannot provide a satisfactory bill of sale.