Who is responsible for selecting the site for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) You are responsible for selecting the site for your Franchised Business.
This may involve the hiring of and payment to a local real estate broker to assist you in your selection process.
You acknowledge and agree that our approval of a site does not constitute a representation or warranty of any kind, express or implied, of the site's suitability for a Pump It Up Business or for any other purpose.
Our approval indicates only that we believe that the site meets our then-current
site selection criteria. Applying criteria that have appeared effective with other sites might not accurately reflect the potential for all sites (including your site), and demographic and/or other factors included in or excluded from our criteria could change, altering the potential viability of a site. The uncertainty and instability of these criteria are beyond our control, and we are not responsible if a site we approve fails to meet your expectations. You acknowledge and agree that: (a) your submission of a proposed site for our acceptance is based on your own independent investigation of the site's suitability for the Franchised Business; and (b) our site-selection assistance is primarily for our benefit to assure us that we will have a minimally acceptable site upon the expiration or termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the franchisee is responsible for selecting the site for their franchised business. However, this selection must be made from within a designated area identified by Pump It Up, referred to as the "Site Selection Area." The franchisee must obtain written approval from Pump It Up for the chosen site within 12 months of the effective date of the franchise agreement; otherwise, Pump It Up may terminate the agreement. Pump It Up reserves the right to modify the Site Selection Area at any time.
Pump It Up will provide franchisees with site selection guidelines and criteria, including factors like population density, visibility, traffic flow, competition, accessibility, parking, and size. While Pump It Up offers assistance and guidelines, the ultimate responsibility for investigating the site's suitability rests with the franchisee. Franchisees may need to hire a local real estate broker to aid in the selection process.
Pump It Up's approval of a site does not constitute a warranty of its suitability for a Pump It Up business. The approval only indicates that the site meets Pump It Up's current selection criteria. The FDD emphasizes that the effectiveness of these criteria can vary, and Pump It Up is not liable if an approved site fails to meet the franchisee's expectations. The franchisee must submit a detailed site evaluation package to Pump It Up for review, including floor plans, photographs, demographic and financial information, and evidence of favorable prospects for securing the site.
This arrangement is fairly typical in the franchise industry, where the franchisor sets basic criteria and retains approval rights, but the franchisee bears the responsibility for local market research and site selection. This approach allows the franchisor to maintain brand consistency while leveraging the franchisee's local knowledge.