When is the Initial Franchise Fee due to Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
id="page-13-1">Initial Franchise Fee
You must pay us an Initial Franchise Fee in the amount of $30,000 no later than the date that you sign the Franchise Agreement. The Initial Franchise Fee offsets the expenses PIU incurs to market to, provide assistance to, research, award, and train franchisees. The Initial Franchise Fee PIU charges new franchisees is generally uniformly applied.
PIU may refund to you up to fifty percent (50%) of the Initial Franchise Fee you paid to PIU if: (1) after making a good faith effort, as determined by us in our reasonable discretion, you: (i) are unable to sign a lease agreement or real estate purchase agreement for a Premises to operate your Pump It Up Franchised Business within one year from the Effective Date of the Franchise Agreement, or (ii) are unable to secure lender financing for the development and operation of your Pump It Up Franchised Business within one year of the Effective Date of the Franchise Agreement; and (2) you provide us with written notice of your request for a refund prior to the one year anniversary of the Franchise Agreement; and (3) you execute a voluntary termination agreement and general release (see Exhibit E) with us.
The Initial Franchise Fee and all other fees are uniform for all similarly situated franchisees. PIU may, however, where PIU believes an adjustment is warranted, waive, reduce or change the amount or the payment date for any fee or amount payable to us. Factors that may warrant an adjustment include, but are not limited to: larger or more experienced prospective franchisees; prospective franchisees with which PIU or our affiliates have had previous experience; prospective franchisees departing other franchise/licensed systems; and prospective franchisees in other unique circumstances. PIU may elect not to negotiate with a prospective franchisee even if a franchisee possesses some or all of the same characteristics as
Source: Item 5 — INITIAL FEES (FDD pages 14–15)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the initial franchise fee of $30,000 is due no later than the date you sign the Franchise Agreement. This fee compensates Pump It Up for expenses related to marketing, assisting, researching, awarding, and training franchisees.
Pump It Up may refund up to 50% of the initial franchise fee if, despite a good faith effort, the franchisee is unable to secure a lease agreement or real estate purchase agreement, or is unable to secure lender financing within one year of the Franchise Agreement's effective date. To receive this refund, the franchisee must provide written notice before the one-year anniversary of the agreement and execute a voluntary termination agreement and general release with Pump It Up.
The initial franchise fee is generally uniform for all franchisees, but Pump It Up reserves the right to adjust or waive the fee under certain circumstances. These circumstances may include larger or more experienced franchisees, franchisees with prior experience with Pump It Up or its affiliates, franchisees departing other franchise systems, or franchisees in other unique situations. However, Pump It Up is not obligated to negotiate with prospective franchisees, even if they possess similar characteristics to those whose agreements were previously modified.