What reporting obligations must a Pump It Up franchisee fulfill to be eligible for a transfer?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(f) you have corrected any existing deficiencies of the Franchised Business of which we have notified you, and/or the proposed transferee agrees to upgrade, remodel, and refurbish the Franchised Business in accordance with our then-current requirements and specifications for Pump It Up Businesses within the time period we specify following the effective date of the Transfer (we will advise the proposed transferee before the effective date of the Transfer of the specific actions that are required and the time period within which such actions must be taken);
(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; and
(h) you must modify and/or upgrade certain equipment, safety features, and computer hardware or software to our then-current standards prior to the closing of the proposed transfer.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must meet several conditions. The franchisee must correct any existing deficiencies of the franchised business that Pump It Up has notified them about. Alternatively, the proposed transferee can agree to upgrade, remodel, and refurbish the franchised business according to Pump It Up's current standards for Pump It Up businesses. These actions must be completed within a timeframe specified by Pump It Up following the transfer's effective date, with Pump It Up informing the transferee of the specific requirements and deadlines before the transfer.
Additionally, if the franchisee or their owners are financing any part of the sale to the proposed transferee, they must agree that the transferee's obligations under any promissory notes, agreements, or security interests are subordinate to the transferee's obligation to pay royalties, brand fund contributions, and other amounts due to Pump It Up, its affiliates, and third-party vendors. The franchisee and their transferring owners must also sign a general release, in a form satisfactory to Pump It Up, releasing any claims against Pump It Up and its affiliates, officers, directors, employees, and agents.
Prior to the transfer, the franchisee must modify and/or upgrade certain equipment, safety features, and computer hardware or software to Pump It Up's current standards. These requirements ensure that the franchise remains compliant with Pump It Up's standards and that the new owner is set up for success. The franchisor retains significant control over the transfer process to maintain brand consistency and protect its interests.