What rights does Pump It Up reserve in the Site Selection Area?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve all rights in the Site Selection Area with respect to the Protected Area.
- B.
Rights We Reserve.
Except as expressly granted to you in Section 3.A., we and our affiliates retain all rights with respect to Pump It Up Businesses, the Marks, the sale of similar or dissimilar products and services, and any other activities we deem appropriate whenever and wherever we desire, including, but not limited to the right 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 regardless of proximity to the Franchised Business; (4) acquire the assets and/or ownership interests of one or more competing children's 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.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up retains specific rights within the Site Selection Area. Pump It Up reserves all the rights in the Site Selection Area that it reserves with respect to the Protected Area.
Specifically, Pump It Up retains all rights with respect to Pump It Up Businesses, the Marks, the sale of similar or dissimilar products and services, and any other activities it deems appropriate whenever and wherever it desires. This includes the right to operate or license others to operate any type of business other than a Pump It Up Business at any location inside or outside the Protected Area. They can also provide, offer, and sell products that are identical or similar to those provided at Pump It Up Businesses through different distribution channels, including the internet, both inside and outside the Protected Area.
Pump It Up also reserves the right to operate or license others to operate Pump It Up Businesses outside the Protected Area, regardless of proximity to the Franchised Business. They can acquire competing children's entertainment centers and franchise, license, or create similar arrangements with these businesses, even within the Protected Area. Additionally, Pump It Up can be acquired by a competitor or another business that operates competing businesses, even if those businesses operate, franchise, or license competing businesses in the Protected Area. Finally, Pump It Up can create, place, and distribute advertising and promotional materials that may appear in media or be received by prospective customers within the Protected Area.
This broad reservation of rights means that while a franchisee may have certain limited exclusive rights within their Protected Area, Pump It Up retains significant control and flexibility to operate and compete, even within areas that might otherwise be considered the franchisee's territory. A prospective franchisee should carefully consider these reserved rights and how they might impact their business before investing in a Pump It Up franchise.