Which state's law governs the Pump It Up franchise agreement?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDITIONAL DISCLOSURES REQUIRED BY THE STATE OF CALIFORNIA
The registration of this franchise offering by the California Department of Financial Protection and Innovation does not constitute approval, recommendation, or endorsement by the Commissioner.
The Franchise Agreement requires the application of the law of Arizona.
This provision may not be enforceable under California law.
ADDENDUM TO PUMP IT UP FRANCHISE AGREEMENT
REQUIRED FOR NEW YORK FRANCHISEES
- The following sentence is added to the end of Section 27.B.: Notwithstanding the foregoing, the New York Franchises Law shall govern any claim arising under that law.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 47–50)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, the franchise agreement generally requires the application of Arizona law. However, this may not be enforceable under California law. For franchisees in New York, the New York Franchise Law governs any claim arising under that law. For franchisees in Washington, in the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act will prevail.
For prospective Pump It Up franchisees, this means that the laws governing the franchise agreement can vary depending on the state in which the franchise is located. Generally, Arizona law applies, as Pump It Up Holdings, LLC is an Arizona limited liability company. However, California franchisees should be aware that the provision requiring the application of Arizona law may not be enforceable under California law, and they should consult with legal counsel to determine the applicable laws. New York franchisees should note that the New York Franchise Law will govern any claims arising under that law. Washington franchisees should be aware that the Washington Franchise Investment Protection Act will prevail in the event of a conflict of laws.
It is important for prospective franchisees to understand which state's laws will govern their franchise agreement, as this can have a significant impact on their rights and obligations. Franchisees should consult with legal counsel to determine the applicable laws and to ensure that their interests are protected. This is especially important for franchisees in California, New York, and Washington, as these states have specific laws that may affect the enforceability of certain provisions in the franchise agreement.
Pump It Up franchisees should be aware of the potential for conflicts of law and should seek legal advice to ensure they understand their rights and obligations under the franchise agreement and applicable state laws.