What must a Pump It Up franchisee do to receive a refund of the Initial Franchise Fee?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) We may refund up to 50% of the Initial Franchise Fee you actually paid to us if, after making a good faith effort, as determined by us in our reasonable discretion, you:
(a) within one year of the Effective Date of the Franchise Agreement: (i) are unable to sign a lease agreement or real estate purchase agreement for a Premises to operate your Franchised Business; or (ii) to secure lender financing for the development and operation of your Franchised Business; and
(b) you provide us with written notice of your request for a refund prior to the one-year anniversary of the Franchise Agreement; and
(c) you execute a voluntary termination agreement and general release with us (See Exhibit E to the Franchise Disclosure Document).
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 eligible for a refund of up to 50% of the initial franchise fee under specific conditions. To qualify, the franchisee must demonstrate a good faith effort, as determined by Pump It Up, to either secure a lease agreement or real estate purchase agreement for a suitable premises or obtain lender financing for the development and operation of the franchise. This effort must be made within one year of the effective date of the Franchise Agreement.
In addition to demonstrating a good faith effort within the one-year timeframe, the franchisee must provide Pump It Up with written notice of their request for a refund before the one-year anniversary of the Franchise Agreement. Furthermore, the franchisee must execute a voluntary termination agreement and general release with Pump It Up, as outlined in Exhibit E of the Franchise Disclosure Document. Meeting all these conditions is essential for a franchisee to be considered for a partial refund of the initial franchise fee.
It is important to note that the refund is not guaranteed and is contingent upon Pump It Up's assessment of the franchisee's good faith effort. If these conditions are met, Pump It Up may refund up to 50% of the initial franchise fee actually paid. This policy provides some financial relief to franchisees who are unable to proceed with opening their Pump It Up location due to issues with securing a location or financing, but it also requires franchisees to act promptly and diligently in their efforts to establish the business.