What was the present value of the lease liability for Pump It Up?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Operating Lease Cost | $ 133,691 | $ 139,874 |
| Variable Lease Cost | 44,560 | 66,212 |
| Total Lease Cost | $ 178,251 | $ 206,086 |
| Other Information: | ||
| Cash Paid for Amounts Included in the Measurement | ||
| of Lease Liability: | ||
| Operating Cash Flows from Operating Lease | $ 124,145 | $ 127,869 |
| Right-Of-Use Assets Obtained in Exchange for New | ||
| Operating Lease Liability | $ - | $ - |
| Weighted-Average Remaining Lease Term - | 7.4 Years | 8.4 Years |
| Operating Lease | ||
| Weighted-Average Discount Rate - Operating Lease | 1.63% | 1.63% |
The Compan
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the present value of the lease liability is detailed in Item 23. The table provided shows a breakdown of total lease payments, interest, and the resulting present value.
Specifically, the total lease payments amount to $1,027,596. After deducting interest of $63,115, the present value of the lease liability is calculated to be $964,481. This figure represents the discounted value of future lease payments, reflecting the time value of money.
For a prospective Pump It Up franchisee, understanding the present value of lease liabilities is crucial for assessing the financial obligations associated with leasing a location. This information helps in evaluating the overall cost of the franchise and making informed financial decisions. It's important to note that these figures are based on specific assumptions and lease terms, which may vary depending on the location and agreement negotiated.