When is the initial franchise fee due for a Pump It Up franchise?
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 generally applies this initial franchise fee uniformly to all new franchisees. However, the document states that Pump It Up may, under certain circumstances, offer adjustments to the initial franchise fee. These circumstances include larger or more experienced prospective franchisees, those with prior experience with Pump It Up or its affiliates, franchisees departing other franchise systems, and those in other unique situations.
The FDD also specifies conditions under which a refund of up to 50% of the initial franchise fee may be granted. This refund is contingent upon the franchisee making a good faith effort to secure a lease agreement or financing within one year of the Franchise Agreement's effective date, providing written notice of the refund request before the one-year anniversary, and executing a voluntary termination agreement and general release with Pump It Up.