Under what circumstances can Pump It Up increase the minimum required insurance coverage?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
with limits of not less than $50,000 per occurrence.
- (3) All insurance policies must be written by an insurance company that is licensed in the state where the Franchised Business is located, and must meet our minimum standards and specifications as set forth in this Agreement, the Manuals or otherwise stated to you in writing. We may periodically increase the minimum required coverage and/or modify or require different or additional insurance coverage (including reasonable excess liability insurance) at any time to reflect inflation, identification of new risks, changes in law or standards of liability, higher damage awards or other relevant changes in circumstances. You will receive written notice of such modifications and shall take prompt action to secure the additional coverage or higher policy limits.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up has the right to periodically increase the minimum required insurance coverage and/or modify or require different or additional insurance coverage. This includes reasonable excess liability insurance. These changes can be made at any time.
Pump It Up can adjust the insurance requirements to reflect inflation, the identification of new risks, changes in law or standards of liability, higher damage awards, or other relevant changes in circumstances. This allows Pump It Up to ensure that franchisees maintain adequate coverage to protect both their business and the franchisor's interests against potential liabilities and risks that may arise during the franchise term.
Pump It Up will provide written notice to the franchisee regarding these modifications, and the franchisee is then required to promptly secure the additional coverage or higher policy limits. Franchisees must ensure that all insurance policies are written by an insurance company licensed in the state where the franchised business is located and meet Pump It Up's minimum standards and specifications, as outlined in the franchise agreement, manuals, or other written communications.