What is the purpose of paying the Transfer Deposit for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
nts or proposals, and all other information requested by us, relating to the proposed Transfer. Along with that required information, you must pay a transfer fee (the "Transfer Fee"). The Transfer Fee you will pay us is currently between $10,000 and $20,000 depending upon the amount of initial training and support that you will require. With your written notice of your intent to transfer the Franchised Business, you will pay us a deposit towards the Transfer Fee in the amount of $3,000 (the "Transfer Deposit"). The Transfer Deposit must be paid before the proposed Transferee arrives for the Training Program to cover our costs to begin to review the transfer documentatio
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, a franchisee must pay a Transfer Deposit of $3,000 when providing written notice of their intent to transfer their franchise. This deposit is a portion of the overall Transfer Fee, which ranges from $10,000 to $20,000 depending on the amount of initial training and support the new franchisee will need. The Transfer Deposit covers Pump It Up's costs to begin reviewing the transfer documentation.
The Transfer Deposit must be paid before the proposed transferee attends the Training Program. This upfront payment ensures that Pump It Up is compensated for the initial administrative work involved in assessing the transfer application. The FDD states that the Transfer Deposit is non-refundable, meaning that the franchisee will not receive this money back regardless of whether the transfer is completed.
However, the Transfer Deposit can be applied to a future transfer. If the initial transfer does not go through and the prospective transferee has not attended any part of the Pump It Up Training Program, the deposit can be used towards the Transfer Fee for any subsequent transfer that closes within 12 months of the initial transfer application. This provides some flexibility for the franchisee if the first transfer attempt fails but they find another potential buyer within the year.