factual

Under what circumstances is Pump It Up entitled to rights and remedies due to a 'Default'?

Pump_It_Up Franchise · 2025 FDD

Answer from 2025 FDD Document

19. DEFAULT AND TERMINATION

  • A. Events of Default. The occurrence of any of the following events shall be deemed a "Default" and shall entitle us to any or all the rights and remedies set forth below, in addition to any other rights and remedies available to us:
    • (1) You: (i) do not locate, and sign a Lease or acquisition document for, a site approved by us for the Premises; or (ii) comply with the terms of Section 7.A(2) within 12 months of the Effective Date of this Agreement;
    • (2) you do not open the Franchised Business within the time period prescribed in Section 6.D.;
    • (3) you abandon or fail actively to operate the Franchised Business for a period of three or more consecutive days, unless you close the Franchised Business for a purpose we approve in writing or because of Force Majeure, as defined in Section 25.C.;
    • (4) you

Source: Item 23 — RECEIPTS (FDD pages 60–225)

What This Means (2025 FDD)

According to Pump It Up's 2025 Franchise Disclosure Document, several events can trigger a 'Default,' entitling the franchisor to specific rights and remedies. These events range from failing to secure an approved site for the premises or open the franchised business within the stipulated timeframes to more severe issues like insolvency or making significant misrepresentations to the franchisor. A franchisee's failure to actively operate the business for more than three consecutive days without approval or due to reasons other than Force Majeure also constitutes a default.

Other default triggers include breaching obligations outlined in Section 18 of the agreement, unauthorized transfers of ownership, falsifying reports, or failing to disclose material facts. Additionally, failure to meet royalty or marketing contribution obligations as detailed in Section 9.A can lead to default. These conditions highlight the importance of franchisees maintaining operational diligence, financial transparency, and adherence to the franchise agreement terms.

Pump It Up has several remedies available upon the occurrence of a default. They can terminate the agreement without an opportunity to cure for some defaults, or temporarily restrict access to systems, online booking, or the POpS System until the default is remedied. For most defaults, the franchisee has 30 days to remedy the situation after receiving written notice. However, if the default cannot be corrected within 30 days, an extension of up to 90 days may be granted, provided the franchisee begins corrective actions promptly and diligently pursues them. These remedies underscore the franchisor's commitment to maintaining brand standards and protecting the integrity of the Pump It Up system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.