What is the 'Site Selection Area' for a Pump It Up franchise defined as?
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.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the 'Site Selection Area' is an area identified by Pump It Up in Exhibit 1 of the franchise agreement. If the specific premises for the franchise haven't been determined by the effective date of the agreement, the franchisee is required to select a location within this designated Site Selection Area.
The franchisee has a 'Site Approval Period' of 12 months from the effective date to secure written approval from Pump It Up for a site within the Site Selection Area. This includes executing a lease or purchase contract for the approved location. However, Pump It Up retains the right to modify the Site Selection Area at any time and for any reason, which introduces a degree of uncertainty for the franchisee.
During the Site Approval Period, Pump It Up agrees not to operate or license others to operate Pump It Up businesses within the Site Selection Area, provided the franchisee is in full compliance with the agreement. This exclusivity is limited and doesn't apply to Pump It Up businesses already under construction or in operation in the Site Selection Area as of the agreement date. Once the franchisee secures an approved site, any limited rights related to the Site Selection Area are terminated.
Pump It Up also retains all rights in the Site Selection Area that it reserves with respect to the Protected Area, as described in Section 3.A of the agreement. This indicates that Pump It Up maintains significant control and rights within the Site Selection Area, even while the franchisee is searching for a suitable location. The franchisee bears all costs associated with finding, securing, and developing the site, and constructing and equipping the franchise according to Pump It Up's standards.