Is the Pump It Up software license granted to the franchisee exclusive?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
--------------------------------------------------------------------------|-----------------------------------------------------------------------------------------| | HOLDINGS, LLC ("Franchisor") and ("Franchisee") pursuant to a Franchise | | | Agreement dated (the "Franchise Agreement") under which Franchisee will operate an | | | open play family entertainment and party business under Franchisor's business system (the "System") | | | located at | |
-
- 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"). The Schedule may be updated from time to time by Franchisor to include enhancements, upgrades or replacements ("Enhancements") to the Software, which Franchisor will make available to Franchisee from time to time at a reasonable cost.
-
- In consideration for the rights granted herein, Franchisee shall pay to Franchisor a fee equal to one dollar ($1.00) upon execution hereof.
-
- Franchisee shall use the Software only in the operation of the System at the location indicated above or other locations approved or designated in writing by Franchisor. Franchisee may not modify, copy, translate or reproduce in any form all or any part of the Software without the prior written consent of Franchisor. Such consent will be given solely to the extent required for use of the Software in the operation of the System. Franchisee shall not make available the Software, the user and operating manuals thereto, or any copy thereof to any party except as described below in Paragraph 4. Franchisee shall not reverse assemble, reverse compile or otherwise recreate the Software.
-
- All copies of the Software, including any produced by Franchisee with Franchisor's consent, are and shall be the sole and exclusive property of Franchisor or authorized third parties during and after the term of this Software License. Franchisee acknowledges and agrees that Franchisor may secure all or any part of the Software from third parties. Franchisee agrees to execute and deliver to Fr
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 nonexclusive. Specifically, the franchisor grants a "nonexclusive, nonassignable license" for the computer programs used in the Pump It Up business. This means that Pump It Up retains the right to license the same software to other franchisees or even use it themselves.
For a prospective franchisee, this nonexclusive license has several implications. It means Pump It Up can license the software to other franchisees, including those nearby, without violating the agreement. The franchisee cannot transfer or assign the software license to another party without Pump It Up's approval. The franchisee's rights to use the software are limited to the operation of their Pump It Up location and any other locations specifically approved by the franchisor in writing.
Pump It Up retains ownership of the software and can update it with enhancements or upgrades, potentially at a reasonable cost to the franchisee. The franchisee is also prohibited from modifying, copying, or reverse engineering the software. This ensures Pump It Up maintains control over its proprietary technology and can make changes or improvements as needed without interference from individual franchisees. The franchisee must also protect the confidentiality of the software, as it contains Pump It Up's trade secrets.