Can a Pump It Up franchisee be charged for the cost of a vendor inspection?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- I.
New Product and Supplier Evaluation Fee.
If you propose to utilize a new product or new supplier of products that we have not previously used in the System, we may charge you an amount not to exceed the reasonable cost of the inspection (including the actual cost of any test performed) for our review and confirmation that the new product, equipment, materials, supplies or services comply with our System Standards.
You must pay us the New Product and Supplier Evaluation Fee even if we prohibit your use of the proposed new product or supplier.
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 may be charged for the cost of a vendor inspection under specific circumstances. If a franchisee proposes to use a new product or a new supplier that Pump It Up has not previously approved within its system, the franchisee may be charged a fee to cover the inspection costs.
The fee will not exceed the reasonable cost of the inspection, including any tests performed to ensure the new product, equipment, materials, supplies, or services comply with Pump It Up's System Standards. This fee covers the franchisor's expenses for reviewing and confirming that the proposed new product or supplier meets the required standards.
Importantly, the franchisee is responsible for paying this New Product and Supplier Evaluation Fee even if Pump It Up ultimately prohibits the use of the proposed new product or supplier. This means that the franchisee bears the financial risk of the evaluation, regardless of the outcome. This policy ensures that Pump It Up maintains control over its System Standards and that franchisees contribute to the cost of evaluating potential deviations from approved products and suppliers.