What section in the Pump It Up Franchise Agreement discusses site selection and acquisition/lease?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) If the Premises have not been designated as of the Effective Date, you will select a site from within an area that we identify in Exhibit 1 (the "Site Selection Area").
Within 12 months after the Effective Date (the "Site Approval Period"), you must obtain our written approval of a site that is located in the Site Selection Area, and you must execute a lease or purchase contract (or otherwise secure rights to utilize) for an approved site for the Franchised Business.
We, in our sole discretion, reserve the right to change the Site Selection Area at any time and for any reason.
If you are in full compliance with this Agreement, we and our affiliates will not operate, or license others to operate, Pump It Up Businesses in the Site Selection Area during the Site Approval Period.
We reserve all rights in the Site Selection Area that we reserve with respect to the Protected Area as described in Section 3.A.
The limited exclusivity described in Section 3.A. and restrictions contained in this Section 5.A. shall not apply to Pump It Up Businesses already under construction or in operation in the Site Selection Area as of the date of this Agreement.
When you sign a lease or purchase contract for (or otherwise secure rights to utilize) the approved site for the Franchised Business, any limited rights you had with respect to the Site Selection Area will be deemed extinguished.
- (3) You assume all costs, liabilities and expenses for locating, obtaining and developing a site for the Franchised Business, and for constructing and equipping the Franchised Business in accordance with our System Standards.
We will assist you in your site selection by providing you with our site selection guidelines and criteria (which may include population density and other demographic characteristics, visibility, traffic flow, competition, accessibility, parking, size, and other physical and commercial characteristics), and sources for you to obtain demographic information on proposed sites.
You must obtain our written approval of the site before you make any binding commitments related to the site.
If you have not presented to us a legitimately viable site for approval during the Site Approval Period, we may, in our sole discretion, terminate this Agreement pursuant to Section 19.
- (4) You are responsible for selecting the site for your Franchised Business.
Source: Item 9 — FRANCHISEE OBLIGATIONS (FDD pages 29–30)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Section 5.A. of the Franchise Agreement outlines the site selection process. If a site hasn't been designated by the effective date of the agreement, the franchisee must select a location within the Site Selection Area, as defined in Exhibit 1 of the Franchise Agreement. This selection must occur within a 12-month Site Approval Period. The franchisee is responsible for securing a lease or purchase contract for the approved site. Pump It Up retains the right to modify the Site Selection Area at any time.
Pump It Up will provide site selection guidelines and criteria to assist the franchisee, including factors like population density, visibility, traffic flow, competition, accessibility, parking, and size. The franchisee must obtain written approval from Pump It Up before making any binding commitments related to the site. Failure to present a viable site for approval during the Site Approval Period may result in the termination of the Franchise Agreement. The franchisee bears all costs associated with locating, obtaining, and developing the site.
The franchisor's approval of a site indicates only that the site meets their then-current site selection criteria and does not guarantee the site's feasibility or the franchisee's financial success. The lease agreement for the Franchised Business must be for a term of no less than ten years. The franchisee is responsible for preparing the construction plans and ensuring the premises comply with all applicable ordinances, laws, and building codes.