What triggers the termination of the guarantee provided by FB HOLDINGS, LLC for Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, FB HOLDINGS, LLC, an Arizona limited liability company (the "Guarantor"), located at 4343 E. Outlier Blvd., Suite 220, Phoenix, AZ 85008, absolutely and unconditionally guarantees to assume the duties and obligations of PUMP IT UP HOLDINGS, LLC, an Arizona Limited Liability Company, located at 4343 E. Outlier Blvd., Suite 220, Phoenix, AZ 85008 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, FB HOLDINGS, LLC guarantees the duties and obligations of Pump It Up Holdings, LLC under its franchise registration and Franchise Agreement. This guarantee remains in effect until the obligations of Pump It Up under its franchise registrations and the Franchise Agreement are satisfied. The guarantee also ends when the liability of Pump It Up to its franchisees under the Franchise Agreement has been completely discharged, whichever event occurs first.
This means that FB HOLDINGS, LLC is committed to ensuring that Pump It Up fulfills its responsibilities to franchisees. The guarantee is designed to protect franchisees in case Pump It Up fails to meet its obligations. The guarantee remains active as long as Pump It Up has ongoing responsibilities or potential liabilities to its franchisees.
However, the guarantee does not end simply because a franchisee has made a claim against Pump It Up that is still outstanding. FB HOLDINGS, LLC remains liable even if there is an unresolved claim. The guarantee is binding on FB HOLDINGS, LLC and its successors and assigns, meaning that the obligation cannot be easily transferred or avoided.