For Pump It Up, what is the significance of FB Holdings, LLC being the parent company?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Our parent company is FB Holdings, LLC. FB Holdings, LLC is owned by TNC FB Holdings, LLC. TNC FB Holdings, LLC is owned by our ultimate parent, Outlier Holdings, LLC. The principal business address for FB Holdings, LLC, TNC FB Holdings, LLC and Outlier Holdings, LLC is 4343 E. Outlier Blvd., Suite 300, Phoenix, AZ 85008.
FB Holdings, LLC owns the Pump It Up System and the Marks, as described below. We have the right, pursuant to a Trademark License Agreement dated July 7, 2008, which was assigned to FB Holdings, LLC on June 5, 2015, to grant franchises using the System and the Marks. We do not offer franchises in any other line of business.
Attached hereto as Exhibit G are audited consolidated financial statements for our parent company FB Holdings, LLC for the year ended December 31, 2024, for the year ended December 31, 2023, and for the year ended December 31, 2022.
You have not been provided with financial statements of the Franchisor, Pump It Up Holdings, LLC. Therefore, you do not have knowledge of how this specific company has performed. However, FB Holdings, LLC has agreed absolutely and unconditionally to guarantee to assume the duties and obligations of Franchisor under the franchise agreements entered into by Franchisor should Franchisor become unable to perform its duties and obligations. A copy of FB Holdings, LLC's guaranty is included with Exhibit G.
Under a Trademark License Agreement with our parent, FB Holdings, LLC, we have the exclusive right to use and permit our franchisees to use the name and mark "Pump It Up" in addition to certain related trademarks, service marks and other commercial symbols. The term of the License Agreement is perpetual in duration, however, FB Holdings, LLC has the right to terminate the License Agreement following a cure period if we commit a breach of the License Agreement by not policing the standards under which the Marks are used by our franchisees. In the event of a termination of the License Agreement, our rights and obligations under all Franchise Agreements are deemed to be assigned to FB Holdings, LLC to provide continuity of operations to our franchisees.
The consolidated financial statements include the operations of FB Holdings, LLC and its wholly owned subsidiaries, Pump It Up Holdings, LLC; BounceU Holdings, LLC; Fun Brands, LLC; Fun Brands Tempe, LLC; and HQ Carousels, LLC. All material intercompany accounts and transactions have been eliminated in consolidation.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 59)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, FB Holdings, LLC's role as the parent company is significant for several reasons. FB Holdings, LLC owns the Pump It Up System and the Marks (trademarks). Pump It Up Holdings, LLC, the franchisor, has the right to grant franchises using the Pump It Up system and marks through a Trademark License Agreement with FB Holdings, LLC. This agreement gives Pump It Up Holdings, LLC the exclusive right to use the "Pump It Up" name and related trademarks and service marks, allowing franchisees to operate under the brand. FB Holdings, LLC also owns other subsidiaries including BounceU Holdings, LLC; Fun Brands, LLC; Fun Brands Tempe, LLC; and HQ Carousels, LLC.
Furthermore, FB Holdings, LLC provides a guarantee of performance for Pump It Up Holdings, LLC. This means that FB Holdings, LLC has agreed to assume the duties and obligations of Pump It Up Holdings, LLC under the franchise agreements if Pump It Up Holdings, LLC is unable to perform them. This guarantee is crucial for franchisees because they are not provided with the financial statements of Pump It Up Holdings, LLC, so they do not have direct insight into the franchisor's financial performance. The consolidated financial statements of FB Holdings, LLC are provided instead, offering a broader view of the financial health of the parent company and its subsidiaries.
In the event that the Trademark License Agreement between Pump It Up Holdings, LLC and FB Holdings, LLC is terminated due to a breach by Pump It Up Holdings, LLC, all rights and obligations under the franchise agreements would be assigned to FB Holdings, LLC. This ensures continuity of operations for the franchisees, as FB Holdings, LLC would step in to maintain the system and support the franchisees. This provides an additional layer of security for franchisees, knowing that the parent company is committed to maintaining the Pump It Up system even in adverse circumstances.