What is the dependency for receiving a refund of the initial franchise fee for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) We may refund up to 50% of the Initial Franchise Fee you actually paid to us if, after making a good faith effort, as determined by us in our reasonable discretion, you:
(a) within one year of the Effective Date of the Franchise Agreement: (i) are unable to sign a lease agreement or real estate purchase agreement for a Premises to operate your Franchised Business; or (ii) to secure lender financing for the development and operation of your Franchised Business; and
(b) you provide us with written notice of your request for a refund prior to the one-year anniversary of the Franchise Agreement; and
(c) you execute a voluntary termination agreement and general release with us (See Exhibit E to the Franchise Disclosure Document).
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a franchisee may be eligible for a refund of up to 50% of the initial franchise fee under specific conditions. This refund is not automatic; it requires demonstrating a good faith effort to establish the franchise.
To qualify for the refund, the franchisee must be unable to either sign a lease agreement or real estate purchase agreement for a suitable premises, or secure lender financing for the development and operation of the Pump It Up franchise within one year of the Franchise Agreement's effective date. Additionally, the franchisee must provide written notice to Pump It Up requesting the refund before the one-year anniversary of the agreement.
Finally, the franchisee must execute a voluntary termination agreement and general release with Pump It Up. Meeting all these conditions allows for a potential refund of up to 50% of the initial franchise fee, but it's subject to Pump It Up's discretion and assessment of the franchisee's good faith efforts.