If a Pump It Up franchisee chooses to purchase the location, is that acceptable?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
rty rooms. The Arenas should have ceilings of at least 18 feet. We expect that you will lease the location for the Franchised Business, but you may own the location as well. The estimated initial investment of $0.00 for real property assumes that you negotiate a period of free rent (or no rent) prior to the date you open your Franchised Business, although you may choose to purchase, or already own, the location. The lease that you sign for your F
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–25)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees have the option to either lease or own the location of their business. The FDD states, "We expect that you will lease the location for the Franchised Business, but you may own the location as well." This provides flexibility for franchisees depending on their financial situation and preferences.
The document further clarifies that the estimated initial investment of $0.00 for real property assumes that a franchisee negotiates a period of free rent before opening. However, it explicitly states that franchisees "may choose to purchase, or already own, the location." This indicates that purchasing the location is an acceptable alternative to leasing.
Prospective Pump It Up franchisees should carefully consider the financial implications of purchasing versus leasing. While purchasing involves a larger upfront investment, it can offer long-term stability and potential equity. Leasing, on the other hand, requires ongoing payments but may be more accessible initially. The FDD also mentions that the lease signed for the Franchised Business must be for a term of no less than ten years. Franchisees should consult with financial advisors and real estate professionals to determine the best option for their specific circumstances.