take any action adverse to its interests.

Pump It Up Holdings, LLC v. Walter Haller, Michelle Haller and Project 212, LLC (Circuit Court of Cook County, Illinois) Case No. 19 L 6397. Franchisor Pump It Up Holdings, LLC filed a lawsuit on June 10, 2019, against former franchisees Walter Haller, Michelle Haller and their entity Project 212, LLC. The lawsuit alleged that the Hallers breached their franchise agreement by improperly terminating the agreement prior to the end of its term and by using their entity, Project 212, to facilitate the operation of a competing business at the same location as the Hallers' former franchise. On June 24, 2021, the parties settled the case with Hallers paying Pump It Up Holdings and agreeing to other contingent obligations connected to a stipulated judgment in a six-figure amount. In the resolution of this case, Pump It Up Holdings, LLC was not: (a) required to pay any money or other consideration, (b) required to reduce an indebtedness, (c) prevented from enforcing any rights, and (d) required to take any action adverse to its interests.

Pump It Up Holdings, LLC v. Amy Elizabeth Maguire and Kevin Charles Maguire and Morgan Hunter, Ltd. (Superior Court of Arizona, County of Maricopa) Case No. CV2015-011242. Franchisor Pump It Up Holdings filed a lawsuit on September 21, 2015 against former franchisees Amy Elizabeth Maguire, Kevin Charles Maguire and their entity Morgan Hunter, Ltd. The lawsuit alleged that the Maguires breached their former franchise agreement by operating a competing business and by improperly using Pump It Up's

intellectual property and proprietary materials. When the lawsuit settled on November 2, 2020, the Maguires closed their business and agreed to certain restrictive covenants related to the closure. The Maguires also made scheduled and contingent payment commitments to Pump It Up Holdings totaling a six-figure amount. In the resolution of this lawsuit, Pump It Up Holdings, LLC was not: (a) required to pay any money or other consideration, (b) required to reduce an indebtedness, (c) prevented from enforcing any rights, and (d) required to take any action adverse to its interests.

Other than the three matters identified above, no litigation is required to be disclosed in this

ITEM 4 BANKRUPTCY

No bankruptcy information is required to be disclosed in this Item

ITEM 5 INITIAL FEES

Initial Franchise Fee

You must pay us an Initial Franchise Fee in the amount of $30,000 no later than the date that you sign the Franchise Agreement. The Initial Franchise Fee offsets the expenses PIU incurs to market to, provide assistance to, research, award, and train franchisees. The Initial Franchise Fee PIU charges new franchisees is generally uniformly applied.

PIU may refund to you up to fifty percent (50%) of the Initial Franchise Fee you paid to PIU if: (1) after making a good faith effort, as determined by us in our reasonable discretion, you: (i) are unable to sign a lease agreement or real estate purchase agreement for a Premises to operate your Pump It Up Franchised Business within one year from the Effective Date of the Franchise Agreement, or (ii) are unable to secure lender financing for the development and operation of your Pump It Up Franchised Business within one year of the Effective Date of the Franchise Agreement; and (2) you provide us with written notice of your request for a refund prior to the one year anniversary of the Franchise Agreement; and (3) you execute a voluntary termination agreement and general release (see Exhibit E) with us.

The Initial Franchise Fee and all other fees are uniform for all similarly situated franchisees. PIU may, however, where PIU believes an adjustment is warranted, waive, reduce or change the amount or the payment date for any fee or amount payable to us. Factors that may warrant an adjustment include, but are not limited to: larger or more experienced prospective franchisees; prospective franchisees with which PIU or our affiliates have had previous experience; prospective franchisees departing other franchise/licensed systems; and prospective franchisees in other unique circumstances.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 47–50)