To whom are real property payments for a Pump It Up franchise made?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Payment (1) | Is To Be Made | |
|---|---|---|---|---|
| Initial Franchise Fee (2) | $0 - $30,000 | Lump Sum | See Item 5 | Us |
| Real Property (3) | $0- $21,200 | As specified in the lease or purchase agreement | As specified in the lease or purchase agreement | Third parties |
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, payments for real property are made to third parties. The FDD indicates that the estimated initial investment for real property can range from $0 to $21,200. The actual amount depends on the specifics of the lease or purchase agreement.
Pump It Up franchisees typically lease a location in a retail, light industrial, or commercial area, requiring approximately 9,000 to 11,000 square feet of space. These locations are intended to accommodate two arenas and two to three party rooms, with arena ceilings of at least 18 feet. The FDD notes that the $0 estimate for real property assumes a period of free rent or no rent before the franchise opens, but franchisees may also choose to purchase the location.
The lease agreement for a Pump It Up franchise must be for a minimum of ten years. Lease payments to third-party landlords can vary significantly based on property size, location, and market conditions. These lease agreements may include expenses such as taxes, insurance, maintenance, fixed rent (with escalations), common area charges, percentage rent, principal and interest on tenant improvement loans, and other charges related to the operation of the franchised business.
Prospective Pump It Up franchisees should carefully review all lease terms and understand the potential costs associated with real property. Negotiating favorable lease terms, including tenant improvement allowances and free rent periods, can significantly impact the initial investment and ongoing operational expenses.