Does Pump It Up have the right to assign its option to purchase the assets of the Franchised Business?

According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up retains the unrestricted right to assign its option to purchase the assets of a franchised business. This means that if Pump It Up decides to exercise its option to buy some or all of the assets of a franchise location upon termination or expiration of the franchise agreement, it can transfer this right to another party.

This assignment right is significant for prospective franchisees because it introduces the possibility of dealing with a third party in the event of a purchase. The assets subject to this option include leasehold improvements, equipment, vehicles, furnishings, fixtures, signs, inventory, real estate interests, and necessary licenses. Pump It Up or its assignee is entitled to customary representations and warranties that the assets are free and clear regarding ownership, condition, title, liens, encumbrances, environmental and hazardous substances, and the validity of contracts and liabilities.

For a franchisee, this means that if Pump It Up chooses to exercise its purchase option, the franchisee might not be dealing directly with Pump It Up but with another entity designated by them. This could potentially affect the negotiation process, the terms of the sale, and the overall experience of transferring the assets. Franchisees should be aware of this possibility and consider its implications when entering into a franchise agreement with Pump It Up.