What right does the Pump It Up Franchise Agreement grant to the franchisee?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement grants you the right to develop and operate one Pump It Up Business ("Franchised Business"). For each Franchised Business, you must sign a separate Pump It Up Franchise Agreement ("Franchise Agreement") (Exhibit C). We may grant you certain rights in a geographic area around the Franchised Business ("Protected Area"). Your rights and our rights relating to the Protected Area are explained in Item 12. If you have not identified and we have not approved a site for the Franchised Business ("Premises") when you sign the Franchise Agreement, then you must, within 12 months after we sign the Franchise Agreement ("Site Approval Period
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–12)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, the Franchise Agreement grants the franchisee the right to develop and operate one Pump It Up Business. To do so, a franchisee must sign a separate Pump It Up Franchise Agreement for each Franchised Business. Pump It Up may also grant the franchisee certain rights in a geographic area around the Franchised Business, known as a Protected Area, with the specifics of these rights detailed in Item 12 of the FDD.
If a site for the Franchised Business is not identified and approved when the Franchise Agreement is signed, the franchisee has 12 months from the signing date to select and receive approval for the Premises. Within the same 12-month period, the franchisee must also sign a lease or purchase agreement for the approved Premises. The lease or purchase agreement must have a term of no less than ten years and be within a geographic area identified by Pump It Up in the Franchise Agreement, referred to as the Site Selection Area.
Prospective franchisees should carefully review Item 12 of the FDD to fully understand the scope and limitations of any Protected Area rights. Additionally, franchisees need to be prepared to identify and secure an approved site within the specified timeframe to avoid potential issues with the franchise agreement. Franchisees should also note that if they operate as an Entity, the owners and their spouses must sign a personal guaranty, binding them personally to the Franchise Agreement's provisions.