Under what section of the Pump It Up Franchise Agreement can the franchisee terminate the agreement?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
The following statement shall be added at the end of Section 19 of the Franchise Agreement:
- The Franchisee may terminate the Agreement upon any grounds available by law.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the standard Franchise Agreement allows for franchisee termination under specific conditions, but this may be modified by state law. For instance, an addendum for Washington franchisees states, "The Franchisee may terminate the Agreement upon any grounds available by law." This means a Pump It Up franchisee in Washington can terminate the agreement based on legal grounds recognized by Washington state law.
For franchisees in other states, the FDD does not explicitly detail the grounds for franchisee-initiated termination within the standard agreement. Instead, it focuses on the franchisor's rights and conditions for termination. This absence of detail suggests that the franchisee's termination rights may be more limited or subject to specific conditions outlined elsewhere in the agreement, or governed by state laws that may provide certain protections or rights to franchisees.
Prospective Pump It Up franchisees should carefully review the entire Franchise Agreement, including any state-specific addenda, to fully understand their termination rights. They should also consult with a franchise attorney to understand how local laws might affect their ability to terminate the agreement and what conditions or penalties might apply. Understanding these rights and obligations is crucial before investing in a Pump It Up franchise.