Which exhibit in the Pump It Up Franchise Agreement pertains to fees?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
PIU may refund to you up to fifty percent (50%) of the Initial Franchise Fee you paid to PIU if: (1) after making a good faith effort, as determined by us in our reasonable discretion, you: (i) are unable to sign a lease agreement or real estate purchase agreement for a Premises to operate your Pump It Up Franchised Business within one year from the Effective Date of the Franchise Agreement, or (ii) are unable to secure lender financing for the development and operation of your Pump It Up Franchised Business within one year of the Effective Date of the Franchise Agreement; and (2) you provide us with written notice of your request for a refund prior to the one year anniversary of the Franchise Agreement; and (3) you execute a voluntary termination agreement and general release (see Exhibit E) with us.
Source: Item 9 — FRANCHISEE OBLIGATIONS (FDD pages 29–30)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Exhibit E pertains to the voluntary termination agreement and general release. This exhibit is relevant because, under certain conditions, a franchisee may receive a refund of up to 50% of the initial franchise fee if they execute a voluntary termination agreement and general release with Pump It Up, as detailed in Exhibit E. This is contingent upon the franchisee's inability to secure a lease or financing within one year of the Franchise Agreement's effective date, despite good faith efforts.
While Exhibit E is related to the initial franchise fee, the FDD does not explicitly state which exhibit within the Pump It Up Franchise Agreement comprehensively details all fees. Item 5 discusses the initial franchise fee, noting it is generally $30,000 and may be subject to adjustments or waivers under specific circumstances.
Prospective franchisees should carefully review all exhibits and relevant sections of the Franchise Agreement to fully understand all fee obligations. It is advisable to directly ask Pump It Up for clarification on which specific exhibit provides a complete breakdown of all fees associated with the franchise.