What accounting standard did Pump It Up adopt at the beginning of 2023?

According to Pump It Up's 2025 Franchise Disclosure Document, the company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States. This requires the management of Pump It Up to make estimates and assumptions that affect the reported amounts of assets and liabilities. These estimates also impact the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reported period.

As a result, the actual financial results for a Pump It Up franchise could potentially differ from these initial estimates. This is a standard accounting practice, but it's important for prospective franchisees to understand that the financial statements are based on certain assumptions. These assumptions can influence how the business's financial performance is presented.

For a potential Pump It Up franchisee, this means that while the FDD provides financial statements, these statements involve management's best estimates. Due diligence is essential to assess the reasonableness of these estimates and understand how they might impact the franchisee's own financial projections. It would be prudent to discuss these accounting policies with a financial advisor when considering a Pump It Up franchise.