What was the depreciation expense for Pump It Up for the year ended December 31, 2024?

According to Pump It Up's 2025 Franchise Disclosure Document, the depreciation expense for the year ending December 31, 2024, was $21,379. The depreciation expense for the previous year, ending December 31, 2023, was $21,239. This indicates a slight increase in depreciation expenses from 2023 to 2024.

Depreciation is a non-cash expense that reflects the reduction in value of an asset over time due to wear and tear, obsolescence, or other factors. For a Pump It Up franchisee, understanding depreciation is important for accurately assessing the profitability and financial health of the business. It affects the net income and the overall cash flow from operating activities.

It's also important to note that the FDD mentions 'Depreciation and Amortization' together in the context of cash flows from operating activities. For the year 2024, this combined figure was $318,055, and for 2023, it was $317,915. Amortization refers to the expense related to intangible assets, while depreciation relates to tangible assets. A prospective franchisee should understand the breakdown of these expenses to manage their assets effectively and plan for future capital expenditures.