What was the net amount for Pump It Up receipts as of December 31, 2024?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Leasehold Improvements | $ 120,580 | $ 120,580 |
| Furniture and Fixtures | 1,310 | - |
| Computer Equipment | 3,280 | 3,280 |
| Total | 125,170 | 123,860 |
| Less: Accumulated Depreciation | (67,448) | (46,070) |
| Property, Plant, and Equipment, Net | $ 57,722 | $ 77,790 |
Depreciation expense for the years ended December 31, 2024 and 2023, was $21,379 and $21,239, respectively.
NOTE 4 GOODWILL AND INTANGIBLE ASSETS
Goodwill as of, and changes in the carrying amount of goodwill during the years e
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 for receipts as of December 31, 2024, was $65,381. This figure is calculated from a gross amount of $830,596, less accumulated amortization of $765,215. This indicates the depreciated value of certain assets or revenue streams recognized by Pump It Up.
For a prospective franchisee, understanding these receipt figures is crucial for assessing the financial health and performance of the franchisor. The net amount reflects the actual value recognized after accounting for depreciation or amortization, offering a more realistic view of the company's financial position. It's important to note that this figure pertains to overall receipts and not necessarily the revenue generated by individual franchise locations.
Franchisees should investigate what these receipts represent. Understanding the nature of the receipts, the assets they relate to, and the amortization schedule can provide insights into the long-term value and potential liabilities associated with the franchise. Reviewing previous years' data, such as the net amount of $148,441 as of December 31, 2023, and $231,501 as of December 31, 2022, can also reveal trends and inform financial projections.
It would be prudent for potential Pump It Up franchisees to seek clarification from the franchisor regarding the specific items included in these receipt calculations. Understanding the underlying assets and the reasons for amortization will allow for a more informed investment decision. Additionally, comparing these figures with industry benchmarks and the performance of other franchisees can provide a more comprehensive assessment of the franchise's financial viability.