Who is released from claims when a transferring Pump It Up franchisee signs a general release?
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;
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, when a franchisee transfers their franchise, both the franchisee and their owners must sign a general release. This release protects "us and our affiliates, officers, directors, employees, and agents" from any and all claims. This means Pump It Up Holdings, LLC, its parent company, subsidiaries, successors, and affiliates, along with their respective past and present officers, directors, members, shareholders, agents, and employees, are released from liabilities.
This requirement ensures that Pump It Up is protected from potential legal issues arising from the previous franchisee's operation of the business. The release covers all claims, known or unknown, related to the Franchise Agreement or any other agreements between the franchisee and Pump It Up. This includes claims arising from events occurring on or before the date of the release.
However, the general release has some limitations. For example, the release does not apply to claims under the Washington Franchise Investment Protection Act for franchisees in Washington. Additionally, the franchisee and guarantors do not waive any claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. Prospective franchisees should carefully review the general release and understand its implications before signing.