When is the fee for the Pump It Up Software License Agreement due?

According to the 2025 Pump It Up Franchise Disclosure Document, payment for the Software License Agreement is required before opening the franchised business. Specifically, Pump It Up will not authorize the opening of the franchised business unless all required agreements, including any software license agreements, have been signed. This implies that the associated fees must be paid before the business commences operations. The FDD also states that Pump It Up or its affiliates may charge a monthly or any other fee for any proprietary software or technology that they license and for other maintenance and support services provided during the term of the agreement.

Pump It Up may also require franchisees to pay for new or updated computer or other electronic components within 30 days of receiving notice from them. If Pump It Up installs these components, the franchisee must pay their then-current installation fees and any travel, living, and other expenses incurred by their personnel. Additionally, franchisees are responsible for any sales, use, ad valorem, personal property, and general intangibles tax and any registration fees arising out of the Software License, excluding taxes imposed on the franchisor's gross income.

Furthermore, Pump It Up reserves the right to charge franchisees for help desk support at their then-current hourly rates and requires franchisees to cover the costs of maintaining the computer system and any required service or support. If Pump It Up performs repair services or retains a third-party application service provider (ASP), franchisees may have to pay a service or ASP hosting fee. Interest will be charged on all overdue amounts at a rate of 1.5% per month or the highest commercial contract interest rate allowed by law.

In summary, while the initial payment related to the Software License Agreement is due before opening the Pump It Up business, franchisees should anticipate ongoing fees for software usage, maintenance, support, and potential upgrades throughout the term of the agreement. It is important for prospective franchisees to clarify the specific payment schedule and amounts for these ongoing fees with Pump It Up to fully understand the financial obligations associated with the software license.