For Pump It Up franchisees in Washington, when will the collection of the Initial Franchise Fee be deferred?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
The following statement is added to Item 5:
"The Securities Division of the Washington Department of Financial Institutions has imposed a fee deferral requirement due to our financial condition, which requires that we defer the collection of all initial fees from Washington franchisees until we have completed all of our pre-opening obligations and you are open for business."
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the collection of the initial franchise fee from franchisees in Washington is deferred until Pump It Up has completed all of its pre-opening obligations and the franchisee is open for business. This deferral is due to a fee deferral requirement imposed by the Securities Division of the Washington Department of Financial Institutions because of Pump It Up's financial condition.
This means that a new Pump It Up franchisee in Washington will not have to pay the initial franchise fee upfront. Instead, they can delay payment until the franchisor has fulfilled all of its obligations to help them get their business up and running, and until the business is actually open to customers.
This arrangement could be beneficial for prospective franchisees as it reduces the initial financial burden and risk. It ensures that franchisees only pay the fee once they are ready to start generating revenue. However, it is important for potential franchisees to understand what Pump It Up's pre-opening obligations are and to confirm that these obligations are indeed met before the fee is collected.