What were the accounts receivable due from affiliates of Pump It Up's member at the end of 2023?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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| d. Termination by you | Section 4 | You may terminate the Agreement upon any grounds available by law. | #### NOTE 7 OPERATING LEASES (CONTINUED) |
The Company classifies the total undiscounted lease 12 months as current. A maturi
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, at the end of 2023, the company had accounts receivable due from affiliates of Pump It Up's member totaling $29,177. These receivables are included within the broader category of 'Accounts Receivable, Net' on the company's consolidated balance sheets.
This related party transaction indicates financial interactions between Pump It Up and entities affiliated with its member (likely a parent company or major shareholder). Accounts receivable in this context represent money owed to Pump It Up by these affiliated entities. The fact that these amounts are tracked and disclosed suggests that these transactions are a normal part of Pump It Up's business operations.
For a prospective franchisee, this information provides insight into the financial relationships Pump It Up has with its related parties. While a franchisee may not directly interact with these transactions, understanding the flow of funds within the Pump It Up organization can offer a more complete picture of the company's financial health and stability. It is worth noting that the FDD also discloses accounts payable due to affiliates of the Company's member, as well as rent and common area maintenance expenses paid to an affiliate of the Company's member. Reviewing all related party transactions can provide a more comprehensive understanding of the company's financial structure.