What responsibility does a Pump It Up franchisee have for loss or damage related to the Franchised Business?

According to Pump It Up's 2025 Franchise Disclosure Document, the franchisee is responsible for any loss or damage arising from the development and operation of the franchised business. This includes responsibility for all demands or claims related to loss, liability, personal injury, death, property damage, or any expense occurring on the premises or in connection with the development and operation of the Pump It Up business.

This means that as a Pump It Up franchisee, you are assuming significant financial risk for anything that goes wrong at your location. This could range from a customer slipping and falling to more serious incidents resulting in injury or property damage. It is crucial to understand the scope of this responsibility and to ensure you have adequate insurance coverage to protect yourself against potential claims.

Pump It Up requires franchisees to obtain and maintain insurance deemed necessary or appropriate for liabilities caused by the business. It is important for prospective franchisees to carefully evaluate their insurance needs and consult with insurance professionals to determine the appropriate coverage levels. This requirement is typical in franchising, as franchisors seek to protect their brand and reputation from liabilities arising from individual franchise locations. Franchisees should factor insurance costs into their overall business plan and budget.