Which section of the Pump It Up Franchise Agreement addresses insurance requirements?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) procure insurance coverage for your activities under this Agreement as required by Section 12.L. and the Manuals;
(h) You have provided to us copies of certificates for all insurance policies required by Section 12.L. or such other evidence of insurance coverage and payment of premiums as we reasonably may request.
(3) All insurance policies must be written by an insurance company that is licensed in the state where the Franchised Business is located, and must meet our minimum standards and specifications as set forth in this Agreement, the Manuals or otherwise stated to you in writing.
We may periodically increase the minimum required coverage and/or modify or require different or additional insurance coverage (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances.
You will receive written notice of such modifications and shall take prompt action to secure the additional coverage or higher policy limits.
All insurance policies must name us and any affiliates that we designate and our and their respective officers and owners as additional named insureds, and provide for 30 days' prior written notice to us of a policy's material modification, cancellation or expiration.
Each insurance policy shall be specifically endorsed to provide that the coverage shall be primary and that any insurance carried by any additional insured shall be excess and non-contributory.
- (4) At least 10 days prior to commencing construction of the Franchised Business (or, if you are acquiring an existing Pump It Up Business, 10 days prior to the transfer of ownership interests) and annually thereafter, you must submit to us a copy of your Certificates of Insurance or other evidence of you maintaining the required insurance coverage and paying those premiums. If you obtain claims-made insurance policies, we require that you obtain tail coverage for at least four years after the end of any policy period in question or as otherwise set forth in the Manuals or provided to you in writing. If you fail or refuse to obtain and maintain the insurance we specify and/or fail or refuse to provide us with satisfactory evidence of those policies being in place, in addition to our other remedies, we may (but need not) obtain such insurance for you and the Franchised Business on your behalf, in which event you must cooperate with us and reimburse us for all premiums, costs and expenses we incur in obtaining and maintaining the insurance, plus a reasonable fee for our time spent in obtaining such insurance.
Source: Item 9 — FRANCHISEE OBLIGATIONS (FDD pages 29–30)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, Section 12.L of the Franchise Agreement, along with the Manuals, outlines the insurance coverage requirements for franchisees. Item 6.B.(2) also mentions that franchisees must procure insurance coverage as required by Section 12.L. and the Manuals. Item 5.H states that before opening, franchisees must provide certificates for all insurance policies required by Section 12.L.
Specifically, franchisees must secure insurance policies from companies licensed in the state where their Pump It Up business operates, ensuring these policies meet Pump It Up's minimum standards. Pump It Up retains the right to increase minimum coverage, modify, or require different insurance types to address inflation, new risks, legal changes, or higher liability standards. Franchisees will receive written notice of these changes and must promptly adjust their coverage accordingly.
All insurance policies must include Pump It Up, its affiliates, and their officers/owners as additional insured parties. These policies must also provide Pump It Up with 30 days' written notice before any material modification, cancellation, or expiration. The insurance coverage must be primary, meaning it pays out before any other insurance held by additional insured parties.
Franchisees must provide copies of their insurance certificates to Pump It Up at least 10 days before starting construction or transferring ownership of an existing Pump It Up business, and annually thereafter. Failure to maintain the required insurance or provide proof of coverage allows Pump It Up to obtain insurance on the franchisee's behalf, with the franchisee responsible for reimbursing all associated costs and a reasonable fee for Pump It Up's time.