What is the interest rate charged on late payments to Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 transferee. The Transfer Fee is subject to state law. |
| Relocation Costs (1) | $4,000 | Upon demand. | If we approve your relocation request, you must reimburse us for the actual costs we incur in connection with consideration of your relocation request. |
| Successor Term Fee (1) | Currently, we do not charge a Successor Term Fee. We reserve the right to charge as a Successor Term Fee 25% of the initial franchise fee then being charged to new franchisees in the future. | No less than 6 months prior to the end of the Term of your Franchise Agreement. | If we charge a Successor Term Fee, it is payable with the delivery of notice that you intend to enter into a Successor Franchise Agreement with us. |
| Late Payment Fee (1) | $75 for each day that any payment is late. | Due on demand. | We will debit the Late Payment Fee from your business checking account. |
| Interest (1) | 1.5% per month or the highest commercial contract interest rate the law allows, whichever is less. | Upon demand. | We will debit interest from your business checking account on all past due amounts as of the original due date. |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, if a franchisee makes a late payment, Pump It Up charges interest on the past due amount. The interest rate is 1.5% per month, or the highest commercial contract interest rate the law allows, whichever is less. This interest is debited from the franchisee's business checking account as of the original due date.
In addition to interest, Pump It Up also charges a late payment fee of $75 for each day that any payment is late. This fee is also debited directly from the franchisee's business checking account upon demand.
It is important for prospective Pump It Up franchisees to understand these late payment terms and ensure they have sufficient cash flow to make timely payments. Failing to do so can result in significant additional costs and potential strain on their relationship with the franchisor.