Who is responsible for all obligations, debts, and payments under the lease for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will not take possession of the Pump It Up Business until and unless Franchisee defaults, and/or receives notice of default (and/or until there is a termination, cancellation or rescission of Franchisee's rights) under the Lease, any sublease, any other document or instrument, or otherwise. In such event, Franchisor (or its designee) shall have the right (but not the obligation) to take possession of the Pump It Up Business, expel Franchisee from the Pump It Up Business, and, in such event, Franchisee shall have no further right, title or interest in or under the Lease or to the Pump It Up Business, all such rights thereby passing to Franchisor or its designee, in each case without Landlord's further consent. Franchisee agrees to do all acts necessary or appropriate to accomplish such assignment on Franchisor's request.
Franchisee agrees that it will not suffer or permit any surrender, termination, amendment or modification of the Lease without the prior written consent of Franchisor. Throughout the term of the Franchise Agreement, Franchisee agrees that it shall elect and exercise all options to extend the term of, or renew or assume in bankruptcy, the Lease not less than 30 days prior to the last day that any option must be exercised, unless Franchisor otherwise agrees in writing. If Franchisee fails to extend, renew, or assume the Lease, Franchisee hereby appoints Franchisor as its true and lawful attorney in fact to exercise such options for the sole purpose of effecting any extension, renewal or assumption, in each case for the account of Franchisee and without any liability or obligation of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, the franchisee is primarily responsible for all obligations, debts, and payments under the lease agreement for their franchised business. The franchisee must execute a lease agreement to secure the premises for their Pump It Up location no later than 12 months from the effective date of the Franchise Agreement.
The FDD states that the franchisee cannot surrender, terminate, amend, or modify the lease without the prior written consent of the franchisor. The franchisee is also responsible for electing and exercising all options to extend the term of, renew, or assume the lease in bankruptcy, no less than 30 days prior to the last day that any option must be exercised, unless the franchisor agrees otherwise in writing. If the franchisee fails to do so, they appoint the franchisor as their attorney to exercise such options.
Pump It Up, however, retains certain rights related to the lease. If the franchisee defaults or receives a notice of default under the lease, the franchisor has the right, but not the obligation, to take possession of the Pump It Up business and expel the franchisee. In such an event, the franchisee's rights under the lease pass to the franchisor. The franchisee must also agree to do all acts necessary to accomplish such assignment at the franchisor's request. The landlord must also agree not to amend or modify the lease in any manner that would affect any of the requirements without the franchisor's prior written consent. The franchisee may assign the lease to the franchisor with the landlord's consent, and the landlord agrees to consent to the franchisee collaterally assigning the lease to the franchisor, granting the franchisor the option to assume the lease from the date they take possession of the premises.