What was the net income for the Pump It Up franchise in 2024?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |||
|---|---|---|---|---|
| REVENUE | ||||
| Royalties | $ 2,328,873 | $ 2,718,682 | ||
| Brand Fund Fees | 724,154 | 834,690 | ||
| Franchise Fees | 63,500 | 68,000 | ||
| Total Revenue | 3,116,527 | 3,621,372 | ||
| OPERATING EXPENSES | ||||
| Salaries and Related Benefits | 772,528 | 897,229 | ||
| Professional Fees | 90,434 | 61,092 | ||
| Office | 303,299 | 490,899 | ||
| Occupancy | 178,251 | 206,086 | ||
| Advertising | 2,125 | - | ||
| Depreciation and Amortization | 318,055 | 317,915 | ||
| Other General and Administrative Expenses | 11,582 | 5,445 | ||
| Total Operating Expenses | 1,676,274 | 1,978,666 | ||
| INCOME FROM OPERATIONS | 1,440,253 | 1,642,706 | ||
| OTHER INCOME | ||||
| Other Income | 250,000 | 79,174 | ||
| Total Other Income | 250,000 | 79,174 | ||
| NET INCOME | $ 1,690,253 | $ 1,721,880 |
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 income for 2024 was $1,690,253. This figure represents the company's profit after deducting all operating expenses, including salaries, professional fees, office costs, occupancy, advertising, depreciation, amortization, and other administrative expenses, from the total revenue. The total revenue includes royalties, brand fund fees, and franchise fees. Additionally, other income is factored into the net income calculation.
For a prospective franchisee, understanding the franchisor's net income can provide insights into the financial health and stability of the company. A higher net income generally indicates a more profitable and well-managed organization. This can be a positive sign, suggesting that the franchisor has a sustainable business model and is capable of supporting its franchisees.
However, it's important to note that the net income of the franchisor does not directly translate to the potential profitability of an individual franchise location. A franchisee's success will depend on various factors, including location, local market conditions, management skills, and the ability to effectively implement the Pump It Up business model. Therefore, while the franchisor's net income is a useful indicator, prospective franchisees should also conduct their own due diligence and financial analysis to assess the potential profitability of their specific franchise.
Furthermore, the FDD also shows that the net income for 2023 was $1,721,880. This indicates a slight decrease in net income from 2023 to 2024. While the decrease is not drastic, a prospective franchisee may want to inquire about the reasons for this change and whether it is part of a larger trend. Understanding the factors that influenced the net income in both years can provide a more comprehensive view of the company's financial performance.