Under what conditions is the Guarantor discharged from liability related to Pump It Up?
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, the Guarantor's obligations are tied to the Franchisor's liabilities under the franchise registrations and the Franchise Agreement. FB HOLDINGS, LLC, as the Guarantor, provides an absolute and unconditional guarantee to assume the duties and obligations of PUMP IT UP HOLDINGS, LLC, the Franchisor.
The guarantee remains in effect until all obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied. Alternatively, the guarantee is discharged when the Franchisor's liability to its franchisees under the Franchise Agreement has been completely discharged, whichever event occurs first.
However, the Guarantor is explicitly not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. This ensures that any unresolved claims against Pump It Up must be settled before the Guarantor's obligations are considered fulfilled. This guarantee is binding on the Guarantor and its successors and assigns, providing Pump It Up franchisees with assurance that the obligations will be honored.