What is the late payment fee for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
All amounts which you owe us for any reason will bear compounded interest accruing as of their original due date at 1.5% per month or the highest commercial contract interest rate the law allows, whichever is less.
We may electronically debit your business checking account automatically for any past- due amounts and interest.
You acknowledge that this Section 7 is not an agreement to accept any payments after they are due or a commitment to extend credit to, or otherwise finance your operation of, the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, all overdue amounts owed to Pump It Up accrue interest starting from the original due date. This interest is calculated at a rate of 1.5% per month, compounded, or at the highest commercial contract interest rate permitted by law, whichever is less.
This means a Pump It Up franchisee will incur a monthly interest charge of 1.5% on any outstanding balance, or the maximum legal rate if lower. For example, if a franchisee owes $1,000 and the interest rate is 1.5% per month, they would owe an additional $15 in interest for that month. This interest continues to compound on the outstanding balance until it is paid off.
Pump It Up also has the right to automatically debit the franchisee's business checking account for any past-due amounts and associated interest. This ensures Pump It Up can collect outstanding payments efficiently. Franchisees should maintain sufficient funds in their account to avoid overdraft fees or other complications.
It is important to note that this interest charge is not an agreement by Pump It Up to accept late payments or to provide any form of credit or financing to the franchisee. Pump It Up retains all rights and remedies for collecting overdue amounts, and the franchisee remains responsible for making timely payments as required by the Franchise Agreement.