How much did Pump It Up spend on the acquisition of property and equipment in 2024?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | ||
|---|---|---|---|
| CASH FLOWS FROM OPERATING ACTIVITIES | |||
| Net Income | $ 1,690,253 | $ 1,721,880 | |
| Adjustments to Reconcile Net Income to Net Cash | |||
| Provided by Operating Activities: | |||
| Depreciation and Amortization | 318,055 | 317,915 | |
| Change in Allowance for Doubtful Accounts | (145,660) | (8,414) | |
| Noncash Lease Expense | (10,268) | 15,729 | |
| Increase (Decrease) in Assets: | |||
| Accounts Receivable | 249,755 | 244,252 | |
| Prepaid Expenses | (123) | (29) | |
| Increase (Decrease) in Liabilities: | |||
| Accounts Payable | (1,670) | (898) | |
| Accrued Expenses | (245,516) | 90,632 | |
| Deferred Franchise Fees | 33,500 | (11,500) | |
| Net Cash Provided by Operating Activities | 1,888,326 | 2,369,567 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Acquisition of Property and Equipment | (1,311) | - | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Distibution to Member | (1,260,000) | - | |
| Payments on Due to Member | (800,511) | (3,000,000) | |
| Net Cash Used by Operating Activities | (2,060,511) | (3,000,000) | |
| DECREASE IN CASH AND CASH EQUIVALENTS | (173,496) | (630,433) | |
| Cash and Cash Equivalents - Beginning of Year | 481,057 | 1,111,490 | |
| CASH AND CASH EQUIVALENTS - END OF YEAR | $ 307,561 | $ 481,057 |
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the company's acquisition of property and equipment in 2024 amounted to $1,311. This figure reflects the company's investments in its physical assets during that year. This is a relatively small amount, which may reflect the fact that Pump It Up is not opening many new locations.
For a prospective franchisee, this information provides insight into the capital expenditure patterns of Pump It Up. While this figure reflects the franchisor's spending, franchisees should also consider their own potential investments in property and equipment when setting up their individual locations. These costs can vary widely depending on location, the size of the facility, and any required upgrades or modifications.
It's important to note that this figure represents the franchisor's acquisition costs and may not directly correlate with the investment required by a new franchisee to establish a Pump It Up location. Franchisees should carefully review Item 7 of the FDD, which details the estimated initial investment, and consult with existing franchisees to gain a comprehensive understanding of potential costs.