Does Pump It Up charge fees and costs uniformly to franchisees?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) Fees and costs payable to us or our affiliate. All of these fees and costs are non-refundable, and all are charged uniformly to franchisees currently acquiring a franchise. Generally, all fees are uniformly imposed on our franchisees. In certain unique circumstances, we may defer, reduce or waive a fee for a particular franchisee for a limited period of time.
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the franchise generally charges fees and costs uniformly to franchisees. The FDD states that all fees and costs payable to Pump It Up or its affiliates are non-refundable and are charged uniformly to franchisees currently acquiring a franchise. However, in certain unique circumstances, Pump It Up may defer, reduce, or waive a fee for a particular franchisee for a limited period of time.
Several fees are detailed in Item 6 of the FDD. These include the Transfer Fee, ranging from $10,000 to $20,000, depending on the level of training and support the transferee requires. Relocation Costs are $4,000. While there is currently no Successor Term Fee, Pump It Up reserves the right to charge 25% of the initial franchise fee in the future. A Late Payment Fee is $75 for each day a payment is late, and interest is charged at 1.5% per month on past due amounts. An Interim Period Fee is 1% of Gross Revenues if the Franchise Agreement is not timely renewed but operations continue.
Additional fees include Audit Costs, covering the actual expenses of an audit if it's deemed necessary due to reporting failures or understatements exceeding 2%. Franchisees also bear Costs and Attorneys' Fees if Pump It Up prevails in enforcement actions. New Product and Supplier Review costs cover inspections for unapproved vendors or products. Insurance Costs are the actual costs incurred if Pump It Up obtains insurance on behalf of the franchisee. Furthermore, franchisees may face Indemnification for losses incurred due to breaches of the Franchise Agreement and Reimbursement of Costs and Expenses for unfulfilled obligations. If a franchisee chooses to utilize a food prep station, a Food Prep Training Fee of $4,500 plus actual costs is required.
Other ongoing fees include a Royalty fee of 6% of Gross Revenues, a Brand Fund Contribution currently at 2% of Gross Revenues (with the potential to increase to 3%), and Local Store Marketing expenses, which are the greater of 2% of Gross Revenues or $12,000 annually. These fees are typically paid via electronic debit. While Pump It Up generally applies fees uniformly, the possibility of waivers or adjustments in specific situations introduces a degree of variability. Prospective franchisees should clarify the conditions under which these exceptions might apply and understand the full range of potential costs.