Are relocation costs for Pump It Up fixed or variable?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Relocation Costs (1) | $4,000 | Upon demand. | If we approve your relocation request, you must reimburse us for the actual costs we incur in connection with consideration of your relocation request. |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, relocation costs are variable. If Pump It Up approves a franchisee's relocation request, the franchisee must reimburse Pump It Up for the actual costs they incur while considering the relocation request. The FDD specifies the amount for relocation costs is $4,000. This fee is payable upon demand.
This means that while there is an upfront fee of $4,000, the total expense a franchisee might incur can fluctuate based on the specific circumstances of the relocation and the costs Pump It Up incurs in evaluating the request. This differs from a fixed fee, where the amount is predetermined and does not change regardless of the franchisor's expenses.
Prospective Pump It Up franchisees should be aware that relocation is not guaranteed, and they will be responsible for covering Pump It Up's costs associated with the relocation consideration. It would be prudent to discuss potential relocation scenarios and cost factors with Pump It Up during the due diligence process to better understand the possible financial implications.