Who must sign the general release for a Pump It Up franchise transfer?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) if you or your owners finance or intend to finance any part of the sale to the proposed transferee , you and/or your owners agree that all of the transferee's obligations under any promissory notes, agreements, or security interests reserved in the Franchised Business are subordinate to the transferee's obligation to pay Royalties, Brand Fund contributions, and other amounts due to us, our affiliates, and third-party vendors and otherwise to comply with this Agreement; you (and your transferring owners) must sign a general release, in a form satisfactory to us, which releases any and all claims against us and our affiliates, officers, directors, employees, and agents;
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, in the event of a franchise transfer, both the franchisee and their owners are required to sign a general release. This release must be in a form that is satisfactory to Pump It Up. By signing this release, the franchisee and their owners release any and all claims against Pump It Up and its affiliates, officers, directors, employees, and agents.
This requirement ensures that Pump It Up is protected from any potential legal claims that the franchisee or their owners might have against them. This is a common practice in franchising, as it helps to avoid future disputes and liabilities after the transfer is completed. The release covers a broad range of claims, including those arising from the franchise agreement, the sale of the franchise, and the operation of the franchised business.
It is important for prospective Pump It Up franchisees to carefully review the terms of the general release with legal counsel before signing it. Franchisees should understand the full scope of the claims they are waiving and the potential implications of doing so. The FDD also mentions that California Corporations Code Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31516) and Business and Professions Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043).
Furthermore, the 2025 Pump It Up FDD includes an addendum to the general release specifically for Washington franchisees, stating that the release does not apply to any claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. This highlights the importance of understanding how state-specific laws may affect the general release and the franchisee's rights.