What financial obligations must a Pump It Up franchisee fulfill to be eligible for a transfer?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
r Approval of Transfer.
- (1) You must advise us in writing of any proposed Transfer, submit to us (or cause the proposed transferee to submit) a franchise application for the proposed transferee and a copy of all contracts and all other agreements or proposals, and all other information requested by us, relating to the proposed Transfer. Along with that required information, you must pay a transfer fee (the "Transfer Fee"). The Transfer Fee you will pay us is currently between $10,000 and $20,000 depending upon the amount of initial training and support that you will require. With your written notice of your intent to transfer the Franchised Business, you will pay us a deposit towards the Transfer Fee in the amount of $3,000 (the "Transfer Deposit"). The Transfer Deposit must be paid before the proposed Transferee arrives for the Training Program to cover our costs to begin to review the transfer documentation. The Transfer Deposit is non-refundable. If the proposed Transfer does not close and the prospective transferee has not attended any portion of our Training Program, we shall apply the Transfer Deposit against the Transfer Fee for any subsequent transfer that you close within the 12-month period following your initial transfer application. If we do not exercise our right of first refusal (as set forth in Section 16.G.), the decision as to whether or not to approve a proposed Transfer will be made by us in our sole discretion and will include numerous factors deemed relevant by us. These factors may include, but need not be limited to, the following:
- (a) the proposed transferee meets our then-current standards for new franchisees and has sufficient business experience, aptitude, and financial resources to operate the Franchised Business;
- (b) you have paid all amounts owed to us, our affiliates, and third-party vendors, have submitted all required reports and statements to us, and are not in violation of this Agreement;
- (c) neither the proposed transferee nor its owners or affiliates have an ownership interest (direct or indirect) in or perform services for a Comp
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, a franchisee seeking to transfer their franchise must meet several financial obligations. Initially, the franchisee must pay all outstanding amounts owed to Pump It Up, its affiliates, and any third-party vendors. Additionally, all required reports and statements must be submitted to Pump It Up, ensuring the franchise is in good standing regarding its financial and operational reporting.
To initiate the transfer process, the franchisee must pay a transfer fee, which currently ranges from $10,000 to $20,000, depending on the training and support the new franchisee will need. A deposit of $3,000, known as the Transfer Deposit, is required when the franchisee submits a written notice of intent to transfer. This deposit covers the costs associated with reviewing the transfer documentation and is non-refundable. However, if the transfer does not proceed and the prospective transferee hasn't attended any training, the deposit can be applied to a subsequent transfer within a 12-month period.
Furthermore, prior to the transfer becoming effective, either the franchisee or the proposed transferee must pay the remaining balance of the Transfer Fee. However, the transferee must pay Pump It Up's then-current Initial Franchise Fee instead of the Transfer Fee if the proposed transferee comes through an investigation process with a franchise sales broker that Pump It Up has retained. These financial obligations ensure that Pump It Up is compensated for its expenses related to the transfer and that the new franchisee is adequately prepared to operate the business.