Is the ongoing royalty fee for a Pump It Up franchise refundable?

According to the 2025 Pump It Up Franchise Disclosure Document, the ongoing royalty fee is not refundable. Franchisees must pay Pump It Up a royalty fee of 6% of the Gross Revenues of the Franchised Business for the right to use the Pump It Up system and marks. This royalty fee is ongoing and continues for the duration of the franchise agreement.

Gross Revenues include all revenue derived from operating the franchised business, including services, products sold, video game and vending machine proceeds, and amounts received at or away from the premises, regardless of the form of payment (cash, check, credit card, etc.). Gross Revenues exclude sales, use, or service taxes collected from customers and remitted to taxing authorities, and documented refunds, credits, allowances, and charge-backs provided to customers in good faith, as well as documented contributions to approved not-for-profit organizations in conjunction with a Pump It Up-approved charitable event.

This non-refundable aspect of the royalty fee means that even if a franchisee experiences financial difficulties or disputes with Pump It Up, they will not be able to recover any portion of the royalty fees already paid. This is a standard practice in franchising, as royalty fees compensate the franchisor for the ongoing use of their brand, system, and support.