What is the definition of 'Transfer Deposit' in the context of a Pump It Up franchise transfer?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
nts 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 documentatio
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 Deposit' is a $3,000 deposit paid by the franchisee to Pump It Up when providing written notice of their intent to transfer their franchised business. This deposit is a portion of the overall Transfer Fee, which ranges from $10,000 to $20,000, and is intended to cover Pump It Up's costs for reviewing the transfer documentation.
The Transfer Deposit must be paid before the proposed transferee begins the Training Program. This upfront payment signals the franchisee's serious intent to transfer and allows Pump It Up to begin assessing the potential transferee and the transfer documentation.
It's important to note that the Transfer Deposit is non-refundable. However, if the transfer does not proceed and the prospective transferee hasn't attended any part of the training program, Pump It Up will apply the deposit towards the Transfer Fee for any subsequent transfer that closes within 12 months of the initial transfer application. This provides some flexibility for the franchisee if the initial transfer falls through but they find another buyer within the specified timeframe.