Can Pump It Up withhold consent for a franchisee's relocation request?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
25. CONSENTS, APPROVALS AND WAIVERS
- A. Consents. Whenever this Agreement requires our prior approval or consent, you must make a timely written request to us for that approval or consent, and any approval or consent from us must be made in writing and be signed by one of our authorized officers.
- B. Waivers. We and you may, by written instrument, unilaterally waive or reduce any obligation of or restriction upon the other under this Agreement, effective upon delivery of written notice
to the other or another effective date stated in the notice of waiver. Any waiver granted will be without prejudice to any other rights we or you have, will be subject to continuing review, and may be revoked at any time and for any reason effective upon delivery of 10 days' prior written notice. We and you will not waive or impair any right, power, or option this Agreement reserves (including, without limitation, our right to demand exact compliance with every term, condition, and covenant or to declare any breach to be a default and to terminate this Agreement before the expiration of its term) because of: any custom or practice at variance with this Agreement's terms; our or your failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including, without limitation, any System Standard; our waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Pump It Up Businesses; the existence of agreements for other Pump It Up Businesses which contain provisions different from those contained in this Agreement; or our acceptance of any payments due from you after any breach of this Agreement. No special or restrictive legend or endorsement on any check or similar item given to us will be a waiver, compromise, settlement, or accord and satisfaction.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
Based on the 2025 Pump It Up Franchise Disclosure Document, the franchise agreement requires franchisees to obtain prior approval or consent from Pump It Up for certain actions. Specifically, Item 25A states that whenever the agreement requires Pump It Up's prior approval or consent, the franchisee must make a timely written request. Any approval or consent from Pump It Up must be in writing and signed by one of their authorized officers. This indicates that Pump It Up has the right to grant or deny consent based on the terms outlined in the franchise agreement.
This requirement means that if the franchise agreement stipulates that a franchisee needs Pump It Up's consent for relocation, the franchisee must seek and obtain written approval from Pump It Up. Pump It Up's decision to grant or withhold consent would be governed by the specific terms and conditions outlined in the franchise agreement. The franchisee should carefully review the franchise agreement to understand the criteria Pump It Up will use to evaluate relocation requests.
The FDD also mentions waivers, stating that Pump It Up may unilaterally waive or reduce any obligation or restriction upon the franchisee under the agreement, effective upon written notice. However, any waiver granted is subject to continuing review and may be revoked at any time with 10 days' prior written notice. This clause suggests that even if Pump It Up has previously approved similar requests or waived certain requirements, they retain the right to change their position and enforce the terms of the franchise agreement strictly. Therefore, a Pump It Up franchisee cannot assume that a past waiver guarantees future approval for a relocation request.
In summary, while the FDD excerpt does not explicitly address relocation requests, it establishes a framework where Pump It Up's consent is required for certain actions, and any such consent must be obtained in writing. A prospective franchisee should carefully examine the franchise agreement to determine whether relocation requires Pump It Up's consent and what factors Pump It Up will consider when evaluating such requests. Understanding these requirements is crucial for franchisees to avoid potential breaches of the franchise agreement and to ensure smooth operations.