Under what circumstances is the General Release required for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
196,357) | 685,682 | | | | Intangible Assets | $ 8,510,039 | $ (2,196,357) | $ 6,313,682 | | | | Amount | Amortization | Amount | | Trademarks and Trade Names | | $ 5,628,000 | $ - | $ 5,628,000 | | Franchise Contract | 2,882,039 | (1,982,741) | 899,298 | | | | Intangible Assets | $ 8,510,039 | $ (1,982,741) | $ 6,527,298 |
Exhibit E General Release Pump It Up Franchise Disclosure Document
GENERAL RELEASE
| THIS GENERAL RELEASE | ("Release") is executed on (the | |||
|---|---|---|---|---|
| "Release Date") by ("Franchisee") and | ||||
| ("Guarantors") as a condition of [PICK ONE: the transfer of the Pump It Up Unit between Franchisee | ||||
| and Pump It Up Holdings, LLC ("PIU") [or] the transfer or renewal of the Pump It Up Franchise Agreement | ||||
| dated ("Franchise Agreement") between Franchisee and PIU [or] between Franchisee |
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, a General Release is required under specific circumstances related to the franchise agreement. The General Release is executed by the franchisee and any guarantors as a condition of the transfer of a Pump It Up unit between the franchisee and Pump It Up Holdings, LLC, or the transfer or renewal of the Pump It Up Franchise Agreement between the franchisee and Pump It Up Holdings, LLC, or the termination of the Pump It Up Franchise Agreement between the franchisee and Pump It Up Holdings, LLC.
This means that as a prospective Pump It Up franchisee, you (and any guarantors) will be required to sign a General Release under any of the aforementioned conditions. The General Release essentially releases Pump It Up from any claims, demands, liabilities, and causes of action related to the franchise agreement. However, this General Release does not apply to any claims arising under the Washington Franchise Investment Protection Act for franchisees in Washington.
It is important to note that the General Release includes a waiver of rights under Section 1542 of the California Civil Code, which pertains to unknown claims. This means that franchisees are releasing claims they may not even be aware of at the time of signing the release. Prospective franchisees should carefully review the General Release with legal counsel to fully understand its implications and how it affects their rights and potential future claims against Pump It Up.