What recourse does Pump It Up have if a franchisee's premises do not meet System Standards?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) If you fail to maintain the Premises in accordance with our System Standards, we may require you to make the necessary repairs or alterations. 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 to, a Brand Refresh Package, new external signage, the purchase of certain brand specific packages, the addition of parents' lounges and other changes then required of new Pump It Up franchises. Your payment of the expenses associated with the updates will be paid by you directly to the vendors providing such services and products.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, Pump It Up has several options if a franchisee's premises do not meet the System Standards. Pump It Up may require the franchisee to make necessary repairs or alterations to the premises. In some cases, Pump It Up may require the franchisee to temporarily close the Franchised Business to complete these changes.
Pump It Up can also require franchisees to remodel, expand, redecorate, re-equip, or refurnish their premises to conform to the image of new Pump It Up businesses. If any single modification, with the exception of new Arena equipment or new party equipment, exceeds $10,000, the franchisee will have 6 months to comply. Pump It Up will generally not require a major redesign costing more than $10,000 more than twice during the Initial Term of the Franchise Agreement. However, this may be extended if the franchisee cannot amortize the cost over the remaining term.
Furthermore, if a major redesign is required due to the Americans with Disabilities Act or new safety standards, the franchisee is obligated to complete the redesign within a reasonable time, regardless of the cost. Franchisees acquiring an existing Pump It Up business may also be required to update the premises to comply with current System Standards, including brand refresh packages and new signage. These updates are paid directly to the vendors providing the services and products.