What is the limitation on transfer fees collectable by Pump It Up?

According to Pump It Up's 2025 Franchise Disclosure Document, transfer fees are limited to the extent that they reflect Pump It Up's reasonable estimated or actual costs in completing the transfer. This means Pump It Up can only charge a transfer fee that covers the expenses they incur while processing the transfer of a franchise.

Pump It Up's transfer fee is currently between $10,000 and $20,000, depending on the amount of initial training and support the new franchisee requires. A transfer deposit of $3,000 is required to begin the transfer process. This deposit is non-refundable, but may be applied to a future transfer within a 12-month period if the initial transfer does not close and the prospective transferee has not attended any portion of the Training Program.

Notably, the transfer fee will be waived if the proposed transferee is an entity formed by the franchisee for convenience of ownership, or if the franchise is transferred due to death or permanent incapacity. However, if the proposed transferee comes through an investigation process with a franchise sales broker retained by Pump It Up, the transferee must pay the then-current Initial Franchise Fee instead of the Transfer Fee. This enables Pump It Up to pay the additional costs incurred with the franchise sales broker, including the payment of the broker's commissions.

This limitation on transfer fees protects franchisees from excessive charges and ensures that fees are tied to actual costs. Prospective franchisees should inquire about what specific costs are covered by the transfer fee to ensure transparency and fairness.