What are the requirements for a Pump It Up franchisee to renew their franchise agreement?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Subsequent Franchise Agreement.
You will have the option to request the right to continue as a franchisee at the Premises after the expiration of the Initial Term.
The qualifications and conditions for the successor term are described below:
(1) You must give us written notice of your election to continue as a franchisee at the Premises no less than 10 months ("Renewal Notice Deadline"), nor more than 18 months, before the end of the Initial Term;
(2) You must pay to us a successor term fee equal to 25% of the initial franchise fee then being charged to new franchisees (the "Successor Term Fee");
(3) Neither you nor any of your affiliates are in default under this Agreement or any other agreements with us or our affiliates;
(4) You must have the right to remain in possession of the Premises (or another location acceptable to us) for the entire duration of the term of the new Franchise Agreement;
(5) You must renovate and update the Franchised Business to reflect the then-current image and standards of Pump It Up Businesses;
(6) We reserve the right to require you to correct any existing deficiencies of the Franchised Business or in your operation of the Franchised Business and satisfy our then-current System Standards.
This may include, but not be limited to, adding any new products or services that are then being offered in the System, meet our qualifications for new franchisees, and complete any additional certification and training requirements that apply to you, your Operating Principal, and/or your managerial personnel (which may involve the payment of training fees);
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 47–50)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, franchisees have the option to request to continue as a franchisee at their current location after the initial term expires. The initial term of the Franchise Agreement begins on the effective date and ends at midnight on the day preceding the 10th anniversary of when the franchise first opened, unless the agreement is terminated earlier. Pump It Up will document the date the franchise business first opened.
To qualify for a successor term, franchisees must provide written notice of their election to continue as a franchisee no less than 10 months and no more than 18 months before the end of the initial term. They must also pay a successor term fee equal to 25% of the initial franchise fee then being charged to new franchisees.
Additionally, neither the franchisee nor their affiliates can be in default under the Franchise Agreement or any other agreements with Pump It Up or its affiliates. The franchisee must also have the right to remain in possession of the premises (or another location acceptable to Pump It Up) for the entire duration of the new Franchise Agreement. The franchisee will likely need to renovate and update the franchised business to reflect the then-current image and standards of Pump It Up businesses. Pump It Up reserves the right to require franchisees to correct any existing deficiencies in their franchised business or its operation and satisfy the then-current System Standards. This may include adding new products or services, meeting qualifications for new franchisees, and completing additional certification and training requirements.