What was the net amount of goodwill for Pump It Up as of December 31, 2023?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| CURRENT ASSETS | |||
|---|---|---|---|
| Cash and Cash Equivalents | $ 307,561 | $ 481,057 | |
| Accounts Receivable, Net | 194,642 | 298,737 | |
| Prepaid Expenses | 4,784 | 4,661 | |
| Total Current Assets | 506,987 | 784,455 | |
| PROPERTY AND EQUIPMENT, Net | 57,722 | 77,790 | |
| OPERATING RIGHT OF USE ASSET, Net | 939,567 | 1,133,349 | |
| OTHER ASSETS | |||
| Deposits | 18,997 | 18,997 | |
| Goodwill, Net | 65,381 | 148,441 | |
| Intangible Assets, Net | 6,313,682 | 6,527,298 | |
| Total Other Assets | 6,398,060 | 6,694,736 | |
| Total Assets Pump It Up Holdings, LLC | $ 7,902,336 | $ 8,690,330 | |
| By: |
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the net amount of goodwill as of December 31, 2023, was $148,441. Goodwill represents the intangible assets acquired in a business combination, such as brand reputation or customer relationships, less any accumulated amortization.
For a prospective Pump It Up franchisee, understanding the goodwill balance can provide insight into the financial health and acquisition history of the company. A significant goodwill balance might indicate previous acquisitions or mergers, which could have implications for the brand's future strategies and stability.
It's important to note that goodwill is subject to impairment testing, and if its value declines, it could result in a write-down, impacting the company's financial statements. Therefore, while a positive goodwill balance can be seen as an asset, it also carries a degree of risk. Franchisees should consider this when evaluating the overall financial position of Pump It Up.