Is Pump It Up restricted from operating Pump It Up businesses outside of a franchisee's protected area?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
or less of a radius depending on the demographics in your area. In certain areas of the country, the Protected Area may be stated as metes and bounds around the Premises.
Notwithstanding the grant of a Protected Area, we and our affiliates reserve the right, without any compensation to you, to: (1) operate (and license others to operate) any type of business other than a Pump It Up Business at any location inside or outside the Protected Area; (2) provide, offer and sell (and license others to provide, offer and sell) products that are identical or similar to and/or competitive with those provided at or from Pump It Up Businesses, whether identified by the Marks or other trademarks or service marks, through dissimilar distribution channels (including, without limitation, the internet or similar electronic media) both inside and outside the Protected Area; (3) operate (and license others to operate) Pump It Up Businesses located anywhere outside the Protected Area; (4) acquire the assets and/or ownership interests of one or more competing entertainment centers ("Competing Businesses") and franchising, licensing or creating similar arrangements with respect to these businesses once acquired wherever these businesses (or the franchisees or licensees of these businesses) are located or operating (including in the Protected Area); (5) be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction) by a competitor that operates Competing Businesses, or by another business, even if such business operates, franchises and/or licenses Competing Businesses in the Protected Area; and (6) create, place, and/or distribute or authorize others to create, place and/or distribute any advertising and promotional materials, which may appear in media, or be received by prospective customers located, within the Protected Area. The grant of a Protected Area to you does not restrict the future operation of Pump It Up Businesses that are under construction or the continued operation of Pump It Up Businesses in the Protected Area. We reserve all rights in the Site Selection Area with respect to the Protected Area.
You have no options, rights of first refusal, or similar rights to acquire additional franchises from us.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 41–43)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees are granted a Protected Area, but this does not entirely restrict Pump It Up from operating or licensing Pump It Up businesses outside of it. Pump It Up retains the right to operate or license others to operate Pump It Up businesses anywhere outside the Protected Area. This means that while franchisees have some territorial protection, Pump It Up can still expand its brand's presence beyond those boundaries.
Pump It Up also reserves several other rights that could impact a franchisee's business. These include the ability to operate other types of businesses (other than Pump It Up) inside or outside the Protected Area, sell similar products through different channels, acquire competing entertainment centers, and be acquired by a competitor. These stipulations highlight the non-exclusive nature of the territory and the potential for competition from various sources, including the franchisor itself.
Furthermore, the FDD states that Pump It Up's affiliate, BounceU Holdings, operates a competing inflatable business under the mark "BOUNCEU," and these facilities may advertise and directly compete with Pump It Up Businesses, even within the same geographic area. The shared management and offices between Pump It Up and BOUNCEU further emphasize the potential for internal competition. Prospective franchisees should carefully consider these factors and evaluate the potential impact on their business before investing in a Pump It Up franchise.