How does Pump It Up collect the late payment fee?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Late Payment Fee (1) | $75 for each day that any payment is late. | Due on demand. | We will debit the Late Payment Fee from your business checking account. |
- (3) You must sign any documents we require to authorize us to electronically debit your business checking account or Electronic Depository Transfer Account ("EDTA") automatically for the Royalty, Brand Fund contributions, late fees, interest and any other amounts. Our current form of EDTA documents are attached as Exhibit 3 to the Franchise Agreement. We will debit the EDTA on the dates that payments are due. If you fail to report Gross Revenues of the Franchised Business, we may debit your EDTA for 120% of the highest monthly Royalty and Brand Fund contribution that we previously debited from your EDTA. If we have not previously debited your EDTA for Royalty and Brand Fund contributions, we will determine the amount to debit in our sole discretion based on Royalty and Brand Fund contributions made by other franchisees. Once we determine the amount you actually owe to us, we will debit the EDTA the difference, or we will apply a credit towards your next payment.
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 late payment fee is collected through an automatic debit from the franchisee's business checking account. The late fee is $75 for each day that any payment is late and is due on demand. Franchisees are required to sign documents that authorize Pump It Up to electronically debit their business checking account for various fees, including late fees.
This electronic debit process ensures that Pump It Up can promptly collect any late payments. This is a fairly standard practice in franchising, as it provides a reliable method for franchisors to receive payments.
It is important for prospective Pump It Up franchisees to maintain sufficient funds in their business checking accounts to avoid incurring late payment fees. Franchisees should also ensure they understand the due dates for all payments to Pump It Up to avoid any late payment issues.