Where can a Pump It Up franchisee find the specific manner in which to transmit the royalty fee?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
will discount the Initial Franchise Fee for your first Franchised Business by 25%.
B. Ongoing Royalty Fee. 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).
C. Definition of "Gross Revenues". As used in this Agreement, the term "Gross Revenues" means all revenue that you derive from operating the Franchised Business, including, but not limited to, all services and products sold, all video game machine and vending machine proceeds and all amounts that you receive at or away from the Premises, and whether from cash, check, credit and debit card, barter, exchange, trade credit, third-party coupon partners, or other credit transactions. Gross Revenues will exclude: (i) all federal, state, or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority and will be reduced by the amount of any documented refunds, credits, allowances, and charge-backs provided to customers in good faith; and (ii) any documented contributions (up to a maximum amount set by us) you make to an approved not-for-profit organization in conjunction with a PIU-approved charitable event.
D. Advertising Contributions and Expenses. You will spend and/or contribute for advertising the amount we specify. The exact amount of the advertising dollars you must spend and contributions you must make to our Brand Fund (as defined in Section 9.B.) are set forth in Section 9.
E. Late Payment Fee. We may charge a late report fee in the amount of $75 for each day that any payment required by Section 7 is late. We will electronically debit your business checking account automatically for any late payment fee.
F. Help Desk Support Fee. We may impose a Help Desk Support Fee upon you in exchange
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, the specific manner in which a franchisee must transmit royalty payments is detailed in the Manuals. These Manuals may include instructions for automatic, electronic debits of funds, as outlined in Section 7.B of the franchise agreement. The Manuals consist of materials such as audiotapes, videotapes, magnetic media, computer software, written materials, online documentation, recorded virtual webinars, and live webinars that Pump It Up provides to franchisees.
The Manuals contain mandatory and suggested specifications, best practices, standards, operating procedures, general guidance, ongoing advice, and consultation, including Pump It Up's System Standards. These resources prescribe or recommend methods for operating a Pump It Up Business and provide information relating to the franchisee's obligations under the franchise agreement. Franchisees are required to adhere to the standards, specifications, and operating procedures established by Pump It Up, as described in the Manuals and other written communications.
Therefore, a prospective Pump It Up franchisee should consult the Manuals for precise instructions on how to remit royalty fees, as these documents contain the most up-to-date and detailed information on this process. Franchisees should also stay informed of any updates or changes communicated by Pump It Up in writing, as these may supersede the information in the Manuals.