What happens to the Pump It Up transfer deposit if the transfer doesn't occur?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Cable/Satellite | | | | | Television Fee (5) | | | |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee (1) | $10,000-$20,000 The fee will depend on level of initial training and support that the prospective transferee will require as part of the transfer. | $3,000 Transfer Deposit payable when we receive notice that you have identified a potential buyer and signed a purchase agreement; balance is due when PIU issues its consent to the transfer. | The Transfer Fee is not refundable. If the closing for the transfer does not occur and/or the prospective transferee has not fully completed our training program, we will not refund the Transfer Deposit. If during the 12-month period following your initial notice of the transfer, you identify another transferee, then we will apply the Transfer Deposit to the Transfer Fee for that |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the transfer deposit, a portion of the overall transfer fee, is non-refundable even if the transfer does not occur. The total transfer fee ranges from $10,000 to $20,000, with the specific amount depending on the level of initial training and support the prospective transferee requires.
A $3,000 transfer deposit is due when Pump It Up receives notice that the franchisee has identified a potential buyer and signed a purchase agreement. The remaining balance of the transfer fee is due when Pump It Up issues its consent to the transfer. However, if the transfer does not proceed or the prospective transferee does not complete the training program, the initial $3,000 transfer deposit will not be refunded.
The FDD does provide some flexibility regarding the transfer deposit. If the franchisee identifies another potential transferee within a 12-month period following the initial transfer notice, Pump It Up will apply the original transfer deposit to the transfer fee for the new transferee. Franchisees should also be aware that the transfer fee is subject to state law, which may provide additional regulations or protections.