Under what conditions does the guarantee for Pump It Up continue?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, FB HOLDINGS, LLC, an Arizona limited liability company (the "Guarantor"), located at 4343 E. Outlier Blvd., Suite 220, Phoenix, AZ 85008, absolutely and unconditionally guarantees to assume the duties and obligations of PUMP IT UP HOLDINGS, LLC, an Arizona Limited Liability Company, located at 4343 E. Outlier Blvd., Suite 220, Phoenix, AZ 85008 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, FB HOLDINGS, LLC guarantees the duties and obligations of PUMP IT UP HOLDINGS, LLC under its franchise registration and Franchise Agreement. This guarantee remains in effect until all obligations of Pump It Up under its franchise registrations and the Franchise Agreement are fulfilled, or until Pump It Up's liability to its franchisees under the Franchise Agreement is completely discharged.
Specifically, the guarantee continues even if a franchisee's claim against Pump It Up remains outstanding. The guarantor, FB HOLDINGS, LLC, does not receive notice of default on the part of Pump It Up, and the guarantee is binding on the guarantor, its successors, and assigns.
For a prospective Pump It Up franchisee, this guarantee provides a level of assurance that the franchisor will meet its obligations. However, it's important to note that the guarantee does not cover every possible scenario and is subject to the terms and conditions outlined in the Franchise Agreement and related documents. Franchisees should carefully review these documents and seek legal counsel to fully understand the scope and limitations of the guarantee.