What is the definition of 'Transfer Fee' in the context of a Pump It Up franchise transfer?
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 documentatio
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the Transfer Fee is a payment required when a franchisee sells or transfers their franchise to a new owner. This fee is intended to reimburse Pump It Up for the expenses associated with reviewing the transfer application and ensuring the new franchisee meets their standards. The Transfer Fee currently ranges from $10,000 to $20,000, depending on the amount of initial training and support the new franchisee will require.
In addition to the Transfer Fee, a franchisee must also pay a $3,000 Transfer Deposit when submitting a written notice of intent to transfer the franchise. This deposit covers the costs to begin reviewing the transfer documentation and is non-refundable. However, if the transfer does not proceed and the prospective transferee has not attended any portion of the Training Program, Pump It Up will apply the Transfer Deposit against the Transfer Fee for any subsequent transfer that closes within a 12-month period following the initial transfer application.
Notably, the Transfer Fee can be waived under specific circumstances. It is waived if the transfer is to an entity formed by the franchisee for convenience of ownership or if the franchise is transferred due to the franchisee's death or permanent incapacity. However, 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 enables Pump It Up to cover the additional costs incurred with the franchise sales broker, including the payment of the broker's commissions.