What was the net value of Pump It Up's intangible assets in 2023?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
E SELECTION AREA**
Your rights in the Site Selection Area are subject to the limitations described in Section 5. Any boundaries contained in the description of the Site Selection Area will be considered fixed as of the Effective Date and shall not change notwithstanding a change in those boundaries.
[TO BE LEFT BLANK IF THE PREMISES HAVE BEEN DETERMINED AS OF THE EFFECTIVE DATE]
| 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: |
EXHIBIT 2 TO THE PUMP IT UP FRANCHISE AGREEMENT
FORM OF COLLATERAL ASSIGNMENT OF LEASE
| 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 |
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 value of its intangible assets as of December 31, 2023, was $6,527,298. This figure represents the value of assets that are not physical, such as trademarks, trade names, and franchise contracts, after accounting for accumulated amortization. These intangible assets are crucial for Pump It Up as they include the trademarks and franchise agreements that enable franchisees to operate under the Pump It Up brand.
The FDD also provides a breakdown of the gross carrying amount, accumulated amortization, and net carrying amount for specific intangible assets. For instance, trademarks and trade names had a gross carrying amount of $5,628,000 with no accumulated amortization, resulting in a net carrying amount of $5,628,000 in 2023. Franchise contracts had a gross carrying amount of $2,882,039, accumulated amortization of $1,982,741, and a net carrying amount of $899,298 in 2023.
Understanding the composition and valuation of these intangible assets is important for prospective franchisees. These assets underpin the franchise system and contribute to the brand's recognition and market position. The amortization of franchise contracts indicates the expense recognized for using the asset over its useful life, which in this case is between 11 to 14 years. Reviewing these figures helps potential franchisees assess the financial stability and long-term value of the Pump It Up franchise.