When must a Pump It Up franchisee advise the franchisor in writing of a proposed transfer?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
nts 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 documentatio
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a franchisee must provide written notice of their intent to transfer the franchised business to Pump It Up Holdings, LLC. Along with this notice, the franchisee is required to pay a deposit towards the transfer fee. This transfer deposit is $3,000. The FDD stipulates that this deposit must be paid before the proposed transferee begins the Training Program, as it covers the costs associated with reviewing the transfer documentation. The transfer deposit is non-refundable.
This upfront deposit indicates Pump It Up's commitment to thoroughly vetting potential transferees and ensuring they meet the brand's standards. By requiring the deposit before training, Pump It Up mitigates the risk of investing resources in a transferee who may not ultimately be approved. This policy protects the integrity of the Pump It Up brand and the interests of existing franchisees.
For a prospective Pump It Up franchisee looking to sell their business in the future, this requirement means they need to plan ahead and have the $3,000 transfer deposit ready when they notify Pump It Up of their intent to transfer. They should also be aware that this deposit is non-refundable, so they should only proceed with the transfer process if they are serious about selling their business. However, if the transfer does not close and the prospective transferee has not attended any portion of the Training Program, Pump It Up will 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.