What is excluded from the Average Gross Revenue calculation for a Pump It Up business?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) The Average Gross Revenue reflects all revenue derived from operating the Pump It Up business, including, but not limited to, all services and products sold, all video game machine and vending machine proceeds, and all amounts that are received at or away from the Premises, whether from cash, check, credit and debit card, barter, exchange, trade credit, or other credit transactions. The Average Gross Revenue excludes all federal, state, or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority and will be reduced by the amount of any documented refunds, credits, allowances, and charge-backs provided to customers in good faith.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 50–55)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the Average Gross Revenue calculation includes all revenue derived from operating the Pump It Up business. This encompasses revenue from all services and products sold, proceeds from video game and vending machines, and amounts received both at the premises and away from it, regardless of the form of payment (cash, check, credit/debit card, barter, etc.).
However, there are specific exclusions from this calculation. Pump It Up excludes all federal, state, or municipal sales, use, or service taxes collected from customers and then paid to the appropriate taxing authority. Additionally, the Average Gross Revenue is reduced by the amount of any documented refunds, credits, allowances, and charge-backs provided to customers in good faith.
For a prospective Pump It Up franchisee, this means that while all operational revenue streams are considered in the gross revenue calculation, certain pass-through items like sales taxes and legitimate customer refunds are not included. This provides a clearer picture of the actual revenue generated by the business itself, rather than including amounts collected on behalf of other entities. Franchisees should maintain accurate records of taxes collected and refunds/credits issued to ensure accurate reporting of Gross Revenue.