What is the maximum franchise fee a Pump It Up franchisee may have to pay upon renewal?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
You will have the option to request the right to continue as a franchisee at the Premises after the expiration of the Initial Term.
The qualifications and conditions for the successor term are described below:
(1) You must give us written notice of your election to continue as a franchisee at the Premises no less than 10 months ("Renewal Notice Deadline"), nor more than 18 months, before the end of the Initial Term;
(2) You must pay to us a successor term fee equal to 25% of the initial franchise fee then being charged to new franchisees (the "Successor Term Fee");
(3) Neither you nor any of your affiliates are in default under this Agreement or any other agreements with us or our affiliates;
(4) You must have the right to remain in possession of the Premises (or another location acceptable to us) for the entire duration of the term of the new Franchise Agreement;
(5) You must renovate and update the Franchised Business to reflect the then-current image and standards of Pump It Up Businesses;
(6) We reserve the right to require you to correct any existing deficiencies of the Franchised Business or in your operation of the Franchised Business and satisfy our then-current System Standards.
This may include, but not be limited to, adding any new products or services that are then being offered in the System, meet our qualifications for new franchisees, and complete any additional certification and training requirements that apply to you, your Operating Principal, and/or your managerial personnel (which may involve the payment of training fees);
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 47–50)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a franchisee who chooses to renew their franchise agreement must pay a Successor Term Fee. This fee is equal to 25% of the initial franchise fee that Pump It Up is charging new franchisees at the time of renewal.
To illustrate, if the initial franchise fee for new franchisees is $30,000 at the time of renewal, the Successor Term Fee would be $7,500 (25% of $30,000). This fee allows the franchisee to continue operating their Pump It Up business under a new franchise agreement.
In addition to the Successor Term Fee, the franchisee must meet several other conditions to qualify for renewal. These include providing written notice of their intent to renew within a specified timeframe, not being in default of any agreements with Pump It Up, having the right to remain in possession of the premises, and renovating the business to meet Pump It Up's current image and standards. The franchisee may also be required to correct any existing deficiencies and meet current system standards, potentially including adding new products or services and completing additional training.