Can Pump It Up terminate the franchise agreement without cause during the Interim Period?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Automatic Renewal For An Interim Period. If you do not properly and/or timely notify us prior to the Renewal Notice Deadline of your intent to either renew or not remain a franchisee, the Franchise Agreement shall automatically renew for successive one-year terms, beginning on the day after the Franchise Agreement would have expired (the "Interim Period"). During the Interim Period, you are obligated to pay us, in addition to all other fees set forth in this Agreement, the Interim Period Fee described in Section 7.L below. During the Interim Period, we may, in our sole discretion, terminate the Franchise Agreement, for any reason or no reason, upon sixty days' written notice to you. The Initial Term and all subsequent terms, including the Interim Period, shall be referred to as the "Term." Unless we provide you with notice of termination of the Interim Period, you must provide us with notice of non-renewal at least six months prior to the beginning of the next Interim Period to avoid automatic renewal for another Interim Period.
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, Pump It Up has the right to terminate the Franchise Agreement for any reason or no reason during the Interim Period. This Interim Period occurs if a franchisee does not provide timely notice of their intent to renew or not remain a franchisee, which results in an automatic renewal for successive one-year terms.
Pump It Up must provide the franchisee with sixty days' written notice if they choose to terminate the agreement during this Interim Period. In addition to other fees, the franchisee is obligated to pay Pump It Up the Interim Period Fee as described in Section 7.L of the agreement.
To avoid the automatic renewal and potential termination, a franchisee must provide Pump It Up with notice of non-renewal at least six months prior to the beginning of the next Interim Period.