What is the estimated range for real property costs for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Payment (1) | Is To Be Made | |
|---|---|---|---|---|
| Initial Franchise Fee (2) | $0 - $30,000 | Lump Sum | See Item 5 | Us |
| Real Property (3) | $0- $21,200 | As specified in the lease or purchase agreement | As specified in the lease or purchase agreement | Third parties |
| Travel and Living | $0 - $2,700 | As incurred | During training | Third parties |
| Expenses While | ||||
| Training (4) | ||||
| Leasehold | $0 - $350,000 | As incurred | When construction | Third parties |
| Improvements (5) | contract is executed |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–25)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the estimated initial investment for real property ranges from $0 to $21,200. This estimate assumes that a franchisee negotiates a period of free rent or no rent before opening their Pump It Up franchise. However, the document clarifies that franchisees may also choose to purchase or already own the location.
Item 7 of the FDD indicates that the lease payment can vary significantly based on factors such as property size, location, and market conditions. Lease agreements may include expenses such as taxes, insurance, maintenance, fixed rent (with escalations), common area charges, percentage rent, and principal and interest on tenant improvement loans.
Pump It Up franchises are typically located in retail, light industrial, or commercial areas, requiring approximately 9,000 to 11,000 square feet of space to accommodate two arenas and two to three party rooms. The arenas should have ceilings of at least 18 feet. Given the wide range of potential real estate costs and the significant impact of location and lease terms, prospective franchisees should carefully evaluate local market conditions and negotiate favorable lease terms to manage their initial investment effectively.