What release must a transferring Pump It Up franchisee sign?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(g) if you or your owners finance or intend to finance any part of the sale to the proposed transferee , you and/or your owners agree that all of the transferee's obligations under any promissory notes, agreements, or security interests reserved in the Franchised Business are subordinate to the transferee's obligation to pay Royalties, Brand Fund contributions, and other amounts due to us, our affiliates, and third-party vendors and otherwise to comply with this Agreement; you (and your transferring owners) must sign a general release, in a form satisfactory to us, which releases any and all claims against us and our affiliates, officers, directors, employees, and agents;
17. GENERAL RELEASE. You, on behalf of yourself and your subsidiaries and affiliates, all individuals who execute this Agreement, and all guarantors of your obligations under this Agreement (collectively, "Franchisee Releasors"), freely and without any influence forever release and covenant not to file or bring any action of any kind, in any forum, against us, our parent, subsidiaries and affiliates and their respective past and present officers, directors, shareholders, agents, direct and indirect equity holders, and employees, in their corporate and individual capacities (collectively, "PIU Releasees"), with respect to any and all claims, demands, liabilities and causes of action of whatever kind or nature, whether known or unknown, vested or contingent, suspected or unsuspected (collectively, "Claims"), which you or any Franchisee Releasor now own or hold or may at any time have owned or held, including, without limitation, Claims arising under federal, state and local laws, rules and ordinances, and Claims arising out of, or relating to this Agreement and all other agreements between you or any Franchisee Releasor and any PIU Releasee, the sale of a franchise to you or any Franchisee Releasor, the development and operation of the Franchised Business and the development and operation of all other Pump It Up Businesses operated by you or any Franchisee Releasor that are franchised by any PIU Releasee. This General Release does not release any claims arising from representations made in our Franchise Disclosure Document or its exhibits or otherwise impair or affect any claims arising after the date of this Agreement. You (on behalf of the Franchisee Releasors) expressly agree that, with respect to this release, any and all rights granted under Section 1542 of the California Civil Code are expressly waived, to the extent applicable. That Section reads as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.
PUMP IT UP HOLDINGS, LLC, an Arizona limited liability company
ADDENDUM TO PUMP IT UP GENERAL RELEASE
REQUIRED FOR WASHINGTON FRANCHISEES
This Addendum to Pump It Up General Release dated ("General Release") by ("Guarantors") is entered into simultaneously with the execution of the General Release. ("Franchisee") and 1. The General Release is amended to include the following Section 9: 9. Applicability of General Release. This Release shall not apply to any claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. 2. Any capitalized term that is not defined in this Addendum shall have the meaning given it in the General Release. 3. Except as expressly modified by this Addendum, the General Release remains unmodified and in full force and effect. IN WITNESS WHEREOF, Franchisee and Guarantors have executed and delivered this Addendum to General Release. (IF APPLICANT IS AN ENTITY) (IF APPLICANT IS AN INDIVIDUAL) GUARANTOR: Its: Date: GUARANTOR:
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, a transferring franchisee must sign a general release, in a form satisfactory to Pump It Up, which releases any and all claims against Pump It Up and its affiliates, officers, directors, employees, and agents. This release covers all claims, demands, liabilities, and causes of action, whether known or unknown, vested or contingent, suspected or unsuspected. This includes claims arising under federal, state, and local laws, as well as claims related to the Franchise Agreement, the sale of the franchise, and the operation of the franchised business.
The general release does not apply to any claims arising under the Washington Franchise Investment Protection Act for Washington franchisees. Additionally, the general release does not cover claims arising from representations made in Pump It Up's Franchise Disclosure Document or claims arising after the date of the agreement.
Pump It Up also requires franchisees to waive their rights under Section 1542 of the California Civil Code, if applicable. This section states that a general release does not extend to claims which the creditor does not know or suspect to exist at the time of executing the release, which if known, would have materially affected the settlement with the debtor. This waiver means that franchisees are releasing all claims, even those they are unaware of at the time of signing the release.