How is the late payment fee for a Pump It Up franchise collected?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
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- D. Advertising Contributions and Expenses. You will spend and/or contribute for advertising the amount we specify. The exact amount of the advertising dollars you must spend and contributions you must make to
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, if a franchisee is late on any payment required by Section 7 of the agreement, Pump It Up may charge a late report fee of $75 for each day the payment is late. Pump It Up will collect this fee by electronically debiting the franchisee's business checking account automatically.
This means that prospective Pump It Up franchisees should ensure they have sufficient funds in their business checking account to cover all payments due to the franchisor. Franchisees should also be aware of the due dates for all payments to avoid incurring late fees.
Electronic debiting is a fairly standard practice in franchising for collecting ongoing fees, as it ensures timely payments and reduces administrative burdens for both the franchisor and franchisee. Franchisees should carefully review Section 7 of the Franchise Agreement to fully understand all payment obligations and deadlines.