What costs are franchisees responsible for reimbursing Pump It Up for in relation to relocation?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Cable/Satellite | | | | | Television Fee (5) | | | |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee (1) | $10,000-$20,000 The fee will depend on level of initial training and support that the prospective transferee will require as part of the transfer. | $3,000 Transfer Deposit payable when we receive notice that you have identified a potential buyer and signed a purchase agreement; balance is due when PIU issues its consent to the transfer. | The Transfer Fee is not refundable. If the closing for the transfer does not occur and/or the prospective transferee has not fully completed our training program, we will not refund the Transfer Deposit. If during the 12-month period following your initial notice of the transfer, you identify another transferee, then we will apply the Transfer Deposit to the Transfer Fee for that transferee. The Transfer Fee is subject to state law. |
| Relocation Costs (1) | $4,000 | Upon demand. | If we approve your relocation request, you must reimburse us for the actual costs we incur in connection with consideration of your relocation request. |
| Successor Term Fee (1) | Currently, we do not charge a Successor Term Fee. We reserve the right to charge as a Successor Term Fee 25% of the initial franchise fee then being charged to new franchisees in the future. | No less than 6 months prior to the end of the Term of your Franchise Agreement. | If we charge a Successor Term Fee, it is payable with the delivery of notice that you intend to enter into a Successor Franchise Agreement with us. |
| 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. |
| Interest (1) | 1.5% per month or the highest commercial contract interest rate the law allows, whichever is less. | Upon demand. | We will debit interest from your business checking account on all past due amounts as of the original due date. |
| Type of Fee | Amount | Due Date | Remarks |
| ---------------------------------------- | ------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Interim Period Fee (1) | 1% of Gross Revenues. | On or before the 7th day after the end of each month in the same manner and at the same time as you pay your Royalties. | If you do not timely renew your Franchise Agreement but continue to operate your Pump It Up Franchised Business, in addition to other obligations under the Franchise Agreement, you will be obligated to pay us, in addition to the Royalties, an Interim Period Fee equal to 1% of your Gross Revenues, based upon your Gross Revenuesfrom the preceding month. |
| Audit Costs (1) | Actual costs of the examination, including any travel, food, housing, and other expenses. | Upon demand. | Payable only if we determine, in our sole discretion, that the audit is necessary due to your failure to furnish reports, supporting records, or other information as required, or to furnish these items on a timely basis, or if our examination reveals a Royalties and/or Brand Fund contribution understatement exceeding 2% of the amount that you actually reported to us for the period examined. |
| Costs and Attorneys' Fees (1) | Our costs and expenses. | As incurred. | If we prevail in any action seeking enforcement of any terms of any agreement with us, you must pay our attorneys' fees and costs. |
| New Product and Supplier Review (1) | Actual cost of the inspection. | As incurred. | Incurred if you request to use a vendor or product not previously used by us, and we elect to investigate such vendor or product and incur costs in investigating the vendor and/or testing the product to confirm compliance with System Standards. |
| Insurance Costs (5) | Actual cost. | Upon demand. | If you fail to obtain the insurance we specify, we may obtain such insurance for you and you must reimburse us for all premiums, costs and expenses we incur, plus a reasonable fee for our time incurr |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, if a franchisee's relocation request is approved, they must reimburse Pump It Up for the actual costs incurred while considering the relocation request. This is detailed under 'Relocation Costs' in Item 6, which specifies a flat fee of $4,000 due upon demand.
This means that in addition to any expenses the franchisee incurs directly for the relocation itself (moving costs, build-out of a new location, etc.), they are also responsible for covering Pump It Up's internal costs related to evaluating and approving the move. These costs could include administrative time, site visits, market analysis, and legal review to ensure the new location meets Pump It Up's standards and won't negatively impact the brand.
It's important for prospective franchisees to understand that this $4,000 fee is in addition to the relocation costs. Franchisees should carefully consider the potential financial implications of relocation, including both direct moving expenses and this reimbursement to Pump It Up, before deciding to move their franchise location. Franchisees should also inquire with Pump It Up about what specific activities or expenses are covered by this relocation cost to better anticipate the total financial burden.