Under what condition can the requirement for a Pump It Up franchisee's activities to be limited exclusively to Pump It Up Businesses be waived?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
unless waived in writing by us, your Articles of Incorporation, Articles of Organization or written partnership agreement must at all times provide that your activities are limited exclusively to the development and operation of Pump It Up Businesses and other businesses operated by you that are franchised by us or our affiliates
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, if a franchisee is a corporation, limited liability company, or partnership (referred to as an "Entity"), their organizational documents must generally state that their activities are limited to operating Pump It Up Businesses or other businesses franchised by Pump It Up or its affiliates. However, this requirement can be waived by Pump It Up, but the waiver must be in writing.
This means that a prospective Pump It Up franchisee who operates under a business entity typically cannot engage in other business ventures unless they receive explicit written permission from Pump It Up. This restriction ensures that the franchisee's focus remains on developing and operating the Pump It Up franchise according to the franchisor's standards.
For a potential franchisee, this implies that if they wish to diversify their business interests beyond Pump It Up, they must seek and obtain a written waiver from Pump It Up. Without this waiver, the franchisee would be in violation of the franchise agreement, potentially leading to penalties or termination of the agreement. It is important to note that Pump It Up has the discretion to grant or deny such waivers, so franchisees should not assume that a waiver will be automatically approved.