Who bears the expense of the construction or build out of the Pump It Up Franchised Business?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Development of the Franchised Business. You agree to do the following, at your own expense, to develop the Franchised Business at the Premises:
- (1) secure all financing and/or funding required to develop and operate the Franchised Business
- (2) procure insurance coverage for your activities under this Agreement as required by Section 12.L. and the Manuals;
- (3) obtain all required building, utility, sign, health, sanitation, occupancy, business, and other permits and licenses;
- (4) construct all required improvements to the Premises and furnish and decorate the Franchised Business according to our approved plans and specifications;
- (5) obtain all customary contractors' sworn statements and partial and final waivers of lien for construction, remodeling, decorating, and installation services;
- (6) purchase or lease from PIU Vendors all required fixtures, furniture, equipment and interior and exterior signs, and install the same; and
- (7) purchase from PIU Vendors an opening inventory of authorized and approved products, materials, and supplies necessary to commence operations at the Franchised Business.
If you build any portion of the Franchised Business outside of our specifications without receiving our prior written consent, we will have the right to delay the opening of the Franchised Business until you, at your sole expense, bring the Franchised Business into full compliance with our specifications.
C. Start Up Package. Prior to opening your Franchised Business, PIU will provide you with a list of start up items that includes products and services that must be purchased from PIU Vendors (defined below in Section 12.B). These items make up the "Start Up Package." The products, which account for most of the cost of the Start Up Package, includes furniture, fixtures, equipment, inventory, marketing materials, graphics packages, supplies, and certain intangible services which include, without limitation, consultation and training related to the opening of your Franchised Business. You must pay any applicable state sales tax on the products included in the Start Up Package and all shipping costs, which may vary based on your location. You will purchase a Start Up Package for each Pump It Up Business that you open. PIU may change any item or the quantity of any item in the Start Up Package from time to time. You must pay the invoiced amount of the Start Up Package to us or the PIU Vendors along with any applicable taxes no later than 15 days after the signing of your Lease and prior to attending our initial training program as described in Section 11. You may be required to purchase additional items and/or furniture that are not part of our standard Start Up Package.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the franchisee is responsible for all expenses associated with developing the franchised business. This includes securing financing, obtaining insurance, acquiring necessary permits and licenses, and constructing improvements to the premises according to Pump It Up's approved plans and specifications. The franchisee also bears the cost of purchasing or leasing required fixtures, furniture, equipment, interior and exterior signs from approved vendors, as well as purchasing an opening inventory of approved products and supplies.
Specifically, the franchisee must retain a licensed architect to develop construction drawings that comply with the Americans with Disabilities Act (ADA) and other applicable codes. These plans must be submitted to Pump It Up for review upon request. If the franchisee builds any part of the business outside of Pump It Up's specifications without prior written consent, Pump It Up has the right to delay the opening until the franchisee brings the business into full compliance at their own expense.
Pump It Up will provide a list of start-up items that must be purchased from approved vendors, known as the "Start Up Package." This package includes furniture, fixtures, equipment, inventory, marketing materials, graphics packages, supplies, and certain intangible services such as consultation and training. The franchisee is responsible for paying the invoiced amount for the Start Up Package, along with any applicable sales taxes and shipping costs, no later than 15 days after signing the lease and before attending the initial training program. Franchisees may also be required to purchase additional items or furniture that are not part of the standard Start Up Package.
In summary, the financial burden of constructing and equipping the Pump It Up franchise location falls entirely on the franchisee. This includes not only the physical build-out and initial inventory but also the costs associated with professional services like architectural plans and compliance with regulatory requirements.