What was the net value of Pump It Up's operating right of use asset in 2024?
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 ASSE |
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 operating right of use asset for 2024 was $939,567. This figure represents the value of the company's rights to use certain assets, such as property or equipment, under operating leases after accounting for accumulated amortization and any impairment losses. This asset reflects the economic benefit Pump It Up expects to receive from using these leased assets over the lease term.
For a prospective franchisee, understanding the operating right of use asset is crucial because it provides insight into the company's leasing activities and its financial obligations related to leased assets. A higher value may indicate that Pump It Up relies heavily on leased assets to conduct its business operations. This could also mean that the company has significant lease liabilities, which are not detailed in this excerpt.
It is important to note that this figure is a snapshot of the asset's net value at a specific point in time and does not reflect the ongoing lease expenses or potential changes in the value of the leased assets. A potential franchisee should further investigate the nature of these leased assets, the terms of the leases, and the associated liabilities to gain a comprehensive understanding of Pump It Up's financial position and obligations.