What is included in the Average Gross Revenue calculation for a Pump It Up business?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) The Average Gross Revenue reflects all revenue derived from operating the Pump It Up business, including, but not limited to, all services and products sold, all video game machine and vending machine proceeds, and all amounts that are received at or away from the Premises, whether from cash, check, credit and debit card, barter, exchange, trade credit, or other credit transactions. The Average Gross Revenue excludes all federal, state, or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority and will be reduced by the amount of any documented refunds, credits, allowances, and charge-backs provided to customers in good faith.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 50–55)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the Average Gross Revenue calculation includes all revenue derived from operating the Pump It Up business. This encompasses all services and products sold, proceeds from video game and vending machines, and all amounts received at or away from the premises. These revenues can come from various transaction methods, including cash, check, credit and debit card, barter, exchange, trade credit, or other credit transactions.
However, the Average Gross Revenue calculation excludes certain items. Specifically, it does not include federal, state, or municipal sales, use, or service taxes collected from customers and paid to the appropriate taxing authority. Additionally, the revenue is reduced by the amount of any documented refunds, credits, allowances, and charge-backs provided to customers in good faith.
Pump It Up notes that the financial performance representations are derived from historical performance. The Item 19 information excludes locations that had extended closures for more than one month of the calendar year due to reasons such as the COVID-19 pandemic, relocation, or damage (e.g. flooding, fire, tornado, hurricane).