How are other fees payable to Pump It Up pursuant to the Franchise Agreement paid?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to pay us a nonrefundable and continuing royalty fee for the right to use the System and the Marks (the "Royalty") in the amount of 6% of the Gross Revenues of the Franchised Business.
You must transmit the Royalty to us in the manner we specify in the Manuals (which may include, as provided for in Section 7.B. an automatic, electronic debit of funds).
We may electronically debit your business checking account automatically for any past- due amounts and interest.
If your Franchise Agreement has expired and (1) you have not timely executed a new Franchise Agreement; and (2) you continue to operate your Franchised Business after the expiration date of the Term, you will pay us, in addition to the Royalty and other fees detailed in Section 7, an Interim Period Fee equal to 1% of Gross Revenues.
You must pay the Interim Period Fee in the same manner and at the same time as your Royalty payment.
If we evaluate the proposed location for your Franchised Business onsite, you will pay us a Site Evaluation Fee equal to $500 per person that we send to the Site, per day that we are at or traveling to the Site.
In addition to the Site Evaluation Fee, you must also pay all of our travel, living and other expenses for all site evaluations.
Notwithstanding any designation by you, we have the sole discretion to apply any payments by you to any of your past-due indebtedness to us.
No payment by you or acceptance by us of any monies under this Agreement for an amount less than what is due will be treated as anything other than a partial payment on account.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the method of payment for fees can vary. The ongoing royalty fee, which is 6% of gross revenues, must be transmitted in the manner specified in the manuals, which may include automatic electronic debit of funds. Pump It Up may electronically debit a franchisee's business checking account automatically for any past-due amounts and interest.
For the Interim Period Fee, which is equal to 1% of Gross Revenues if a franchisee continues to operate after the agreement's expiration without a timely new agreement, payment must be made in the same manner and at the same time as the royalty payment. If Pump It Up evaluates a proposed location onsite, the Site Evaluation Fee, which is $500 per person per day, along with travel and living expenses, must be paid within five days of receiving an invoice.
Pump It Up maintains the discretion to apply any payments to any past-due indebtedness, regardless of any designation made by the franchisee. Acceptance of partial payments does not waive the right to collect the full amount due. These payment terms and conditions are important for prospective franchisees to understand, as they outline the financial obligations and methods of payment required by Pump It Up.