Is the Pump It Up software license granted to the franchisee assignable?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
Franchisor hereby grants to Franchisee a nonexclusive, nonassignable license to use the computer programs, in object code form ("Software"), listed in the schedule to this Software License (the "Schedule").
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- Franchisee may not cause or effectuate a transfer any of its rights under this Software License without the prior written consent of Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the software license granted to franchisees is non-assignable. Specifically, the franchisor grants a "nonexclusive, nonassignable license" to use the computer programs (the "Software").
This means that a franchisee cannot transfer their rights to use the Pump It Up software to another party without explicit permission from the franchisor. This restriction is typical in franchising, as franchisors want to maintain control over who uses their proprietary software and business systems. The software is integral to the Pump It Up system, and allowing franchisees to freely transfer the license could compromise the brand's standards and intellectual property.
Furthermore, the FDD states that franchisees may not transfer any of their rights under the Software License without the prior written consent of the Franchisor. This clause reinforces the non-assignable nature of the license, even if the franchisee seeks to transfer the entire franchise. A prospective franchisee should carefully consider this restriction, as it limits their flexibility in the event they wish to sell or transfer their Pump It Up franchise.