What are the requirements for the insurance company providing coverage for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) All insurance policies must be written by an insurance company that is licensed in the state where the Franchised Business is located, and must meet our minimum standards and specifications as set forth in this Agreement, the Manuals or otherwise stated to you in writing.
We may periodically increase the minimum required coverage and/or modify or require different or additional insurance coverage (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances.
You will receive written notice of such modifications and shall take prompt action to secure the additional coverage or higher policy limits.
All insurance policies must name us and any affiliates that we designate and our and their respective officers and owners as additional named insureds, and provide for 30 days' prior written notice to us of a policy's material modification, cancellation or expiration.
Each insurance policy shall be specifically endorsed to provide that the coverage shall be primary and that any insurance carried by any additional insured shall be excess and non-contributory.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, all insurance policies must be written by an insurance company that is licensed in the state where the franchised business is located. Additionally, the insurance company must meet Pump It Up's minimum standards and specifications, which are detailed in the Franchise Agreement, the Manuals, or otherwise communicated to the franchisee in writing.
Pump It Up may periodically increase the minimum required coverage, modify existing requirements, or require different or additional insurance coverage to reflect inflation, new risks, changes in law, higher damage awards, or other relevant changes. The franchisee will receive written notice of such modifications and must promptly secure the additional coverage or higher policy limits.
All insurance policies must name Pump It Up and any designated affiliates, along with their respective officers and owners, as additional named insureds. The insurance policy must provide for 30 days' prior written notice to Pump It Up in the event of a material modification, cancellation, or expiration of the policy. Each insurance policy must be specifically endorsed to provide that the coverage is primary and that any insurance carried by any additional insured is excess and non-contributory.