What standards must a proposed transferee meet to be approved for a Pump It Up franchise transfer?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
If we do not exercise our right of first refusal (as set forth in Section 16.G.), the decision as to whether or not to approve a proposed Transfer will be made by us in our sole discretion and will include numerous factors deemed relevant by us.
These factors may include, but need not be limited to, the following:
(a) the proposed transferee meets our then-current standards for new franchisees and has sufficient business experience, aptitude, and financial resources to operate the Franchised Business;
(b) you have paid all amounts owed to us, our affiliates, and third-party vendors, have submitted all required reports and statements to us, and are not in violation of this Agreement;
(c) neither the proposed transferee nor its owners or affiliates have an ownership interest (direct or indirect) in or perform services for a Competing Business (as defined in Section 18.B.(1)(c));
(d) the proposed transferee (or its Operating Principal) satisfactorily completes our initial training program (and any other required training programs we require) and pays any then-current training fees;
(e) the proposed transferee has demonstrated an ability to obtain possessory rights in the Premises;
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a proposed transferee must meet several standards to be approved for a franchise transfer. These standards cover various aspects, including financial capability, operational experience, and adherence to Pump It Up's system standards. The decision to approve a transfer is at Pump It Up's discretion and will include numerous factors deemed relevant by them.
Specifically, the proposed transferee must meet Pump It Up's then-current standards for new franchisees, demonstrating sufficient business experience, aptitude, and financial resources to operate the franchise. They must not have any ownership interest in or provide services to a competing business. The transferee (or its Operating Principal) must also satisfactorily complete Pump It Up's initial training program and pay any associated training fees. Additionally, the transferee needs to demonstrate the ability to secure possessory rights to the premises where the Pump It Up business will operate.
Furthermore, the current franchisee must have paid all outstanding amounts to Pump It Up, its affiliates, and third-party vendors, and must have submitted all required reports without being in violation of the franchise agreement. The proposed transferee must also demonstrate an ability to obtain possessory rights in the Premises. The proposed transferee may also be required to upgrade, remodel, and refurbish the Franchised Business in accordance with Pump It Up's then-current requirements and specifications for Pump It Up Businesses within a specified time period.
These conditions ensure that any new franchisee taking over an existing Pump It Up location is well-prepared and capable of maintaining the brand's standards and operational requirements. Prospective franchisees should carefully review these conditions and discuss any concerns with Pump It Up to fully understand the requirements for a successful transfer.