Is Pump It Up obligated to negotiate the Initial Franchise Fee with all prospective franchisees?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchised Business is located.
- (2) Initial Franchise Fee. The Initial Franchise Fee for one Franchised Business, including the limited refundability of the Initial Franchise Fee, is $30,000. PIU may, where we believe an adjustment is warranted, waive, reduce or change the amount or the payment date for any fee or amount payable to us. There is no formula for such adjustments and each situation is evaluated on a case-by-case basis. Factors may include but are not limited to: larger or more experienced prospective franchisees; prospective franchisees with which PIU or our affiliates have had previous experience; prospective franchisees departing other franchise/licensed systems; and prospective franchisees in other unique circumstances. PIU may elect not to negotiate with a prospective franchisee even if a franchisee possesses some or all of the same characteristics as another franchisee whose agreement was modified. The range described in this section reflects the range of initial franchise fees that Franchisor may charge, including Franchisor's right, in its sole d
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 21–25)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, Pump It Up is not obligated to negotiate the Initial Franchise Fee with all prospective franchisees. The standard Initial Franchise Fee is $30,000, but Pump It Up retains the discretion to waive, reduce, or change this fee or its payment date. These adjustments are made on a case-by-case basis, without a set formula.
Factors that Pump It Up may consider include the franchisee's experience level, prior relationships with Pump It Up or its affiliates, previous involvement in other franchise systems, and other unique circumstances. However, even if a prospective franchisee shares characteristics with those who received modified agreements, Pump It Up can still choose not to negotiate.
Pump It Up's right to adjust the Initial Franchise Fee extends to waiving it entirely. This flexibility allows Pump It Up to attract franchisees who meet specific criteria or to address unique market conditions. However, it also means that prospective franchisees should not assume they will receive a discounted fee, even if they believe they qualify based on the listed factors. Franchisees should be prepared to pay the full $30,000 Initial Franchise Fee.
Ultimately, the decision to negotiate the Initial Franchise Fee rests solely with Pump It Up. Prospective franchisees should inquire about the possibility of fee adjustments during their initial discussions with the franchise development team, but should also understand that Pump It Up is under no obligation to offer a reduced fee.