What is the condition regarding transfer fees for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
r Approval of Transfer.
- (1) You must advise us in writing of any proposed Transfer, submit to us (or cause the proposed transferee to submit) a franchise application for the proposed transferee and a copy of all contracts and all other agreements or proposals, and all other information requested by us, relating to the proposed Transfer. Along with that required information, you must pay a transfer fee (the "Transfer Fee"). The Transfer Fee you will pay us is currently between $10,000 and $20,000 depending upon the amount of initial training and support that you will require. With your written notice of your intent to transfer the Franchised Business, you will pay us a deposit towards the Transfer Fee in the amount of $3,000 (the "Transfer Deposit"). The Transfer Deposit must be paid before the proposed Transferee arrives for the Training Program to cover our costs to begin to review the transfer documentation. The Transfer Deposit is non-refundable. If the proposed Transfer does not close and the prospective transferee has not attended any portion of our Training Program, we shall apply the Transfer Deposit against the Transfer Fee for any subsequent transfer that you close within the 12-month period following your initial transfer application. If we do not exercise our right of first refusal (as set forth in Section 16.G.), the decision as to whether or not to approve a proposed Transfer will
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a transfer fee is required when a franchisee seeks to transfer their franchise to a new owner. The transfer fee is currently between $10,000 and $20,000, with the specific amount depending on the initial training and support the new franchisee will require.
Before the transfer can be reviewed, the franchisee must pay a $3,000 deposit towards the transfer fee. This deposit is non-refundable. However, if the transfer does not proceed and the prospective transferee has not attended any portion of the Training Program, the deposit can be applied to a subsequent transfer that closes within 12 months of the initial application.
There are situations where the transfer fee is waived. No transfer fee is required if the transfer is to an entity formed by the franchisee for convenience of ownership, such as a corporation or limited liability company, or if the transfer occurs due to the franchisee's death or permanent incapacity. However, even in these cases, certain conditions must be met to gain approval for the transfer.
If the proposed transferee is found through a franchise sales broker retained by Pump It Up, the transferee must pay the then-current Initial Franchise Fee instead of the Transfer Fee. This covers the additional costs Pump It Up incurs with the broker, including commissions.