What state's law governs the Pump It Up Release and all claims relating to it?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You (on behalf of the Franchisee Releasors) expressly agree that, with respect to this release, any and all rights granted under Section 1542 of the California Civil Code are expressly waived, to the extent applicable. That Section reads as follows:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, the General Release includes a waiver of rights under Section 1542 of the California Civil Code. This means that franchisees are agreeing to waive their rights to claims they may not even know about at the time of signing the release, which could materially affect their settlement with Pump It Up.
However, the FDD also includes addenda to the General Release for franchisees in certain states, such as Washington. For Washington franchisees, the General Release does not apply to any claims arising under the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
Prospective franchisees should carefully review the General Release and any state-specific addenda with legal counsel to fully understand their rights and obligations. They should also inquire with Pump It Up about whether any other state laws govern the Release or related claims, especially if they are located in a state not explicitly mentioned in the FDD.