What was the amount of operating cash flows from operating leases for Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
tal | $ 751,063 | |
NOTE 5 MEMBER'S EQUITY
The Company has one class of membership interests and is 100% owned by a single member.
NOTE 6 OPERATING LEASES
The Company leases space for its corporate headquarters; this lease expires at the end of June 2027 with a five-year renewal option. The facility lease provides for increases in future minimum monthly rental payments at a rate of 3% annually. Monthly payments also include certain common area maintenance charges.
The following table provides quantitative information concerning the Company's leases.
| 2024 | 2023 | |
|---|---|---|
| Operating |
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the operating cash flows from operating leases were detailed for the years 2023 and 2024. In 2024, the operating cash flows from operating leases amounted to $124,145. For the year 2023, this figure was $127,869. These values reflect the cash paid for amounts included in the measurement of lease liability related to operating leases.
For a prospective Pump It Up franchisee, understanding these figures is crucial as it provides insight into the company's cash flow management related to its lease obligations. Operating leases are a common financial tool for businesses, especially those requiring physical locations like Pump It Up. The consistent figures between 2023 and 2024 suggest a stable approach to lease management.
It's important to note that these figures represent only the operating cash flows from operating leases and do not encompass other lease-related costs such as variable lease costs. The FDD also mentions right-of-use assets obtained in exchange for new operating lease liability, which were reported as $ - for both 2024 and 2023, indicating no such exchanges occurred during those years. Franchisees should consider these cash flow figures in conjunction with other financial data in the FDD to gain a comprehensive understanding of Pump It Up's financial health and lease management practices.