What happens if the proposed Transfer does not close for a Pump It Up franchise?

According to Pump It Up's 2025 Franchise Disclosure Document, if a proposed transfer of a franchise does not close and the prospective transferee has not attended any portion of the Training Program, the transfer deposit will be applied against the transfer fee for any subsequent transfer that closes within a 12-month period following the initial transfer application. The transfer deposit is non-refundable. The Transfer Fee you will pay Pump It Up 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 Pump It Up a deposit towards the Transfer Fee in the amount of $3,000 (the "Transfer Deposit").

This means that if a franchisee attempts to sell their Pump It Up franchise but the deal falls through before the new owner begins training, the $3,000 deposit is not returned. Instead, Pump It Up will hold that deposit and apply it to a future sale within the next year. This incentivizes the franchisee to find another buyer within that timeframe to avoid losing the deposit.

It is important to note that the initial $3,000 transfer deposit is non-refundable, regardless of whether the transfer is completed. This policy is in place to cover Pump It Up's costs associated with reviewing the transfer documentation. Franchisees should carefully consider this policy before initiating a transfer, as they risk losing the deposit if a sale does not materialize. This is a fairly standard practice in franchising, as the franchisor incurs costs when a franchisee attempts to transfer ownership.