factual

What is the role of a franchise broker in the Pump It Up franchise sales process?

Pump_It_Up Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) if the proposed transferee comes through an investigation process with a franchise sales broker that we have retained, then the transferee must pay our then-current Initial Franchise Fee instead of the Transfer Fee.

This enables us to pay the additional costs we incur with a franchise sales broker, including the payment of the broker's commissions.

Source: Item 23 — RECEIPTS (FDD pages 60–225)

What This Means (2025 FDD)

According to the 2025 Pump It Up Franchise Disclosure Document, franchise sales brokers may be retained by Pump It Up to assist in the franchise sales process. If a proposed franchisee is found through a franchise sales broker retained by Pump It Up, that franchisee will pay the then-current Initial Franchise Fee instead of the Transfer Fee. This substitution of fees enables Pump It Up to cover the costs associated with using a franchise sales broker, including paying the broker's commissions.

This arrangement benefits Pump It Up by allowing them to outsource the franchisee recruitment process to brokers, presumably expanding their reach to potential franchisees. For the franchisee, it means that the fees associated with acquiring an existing franchise through a transfer may differ depending on whether a broker is involved. Specifically, the prospective franchisee will pay the initial franchise fee instead of the transfer fee.

It is important for prospective Pump It Up franchisees to understand the implications of a franchise broker's involvement in the transfer process. While the initial franchise fee and transfer fee may be similar, franchisees should confirm the amounts of each with Pump It Up to make an informed decision. Franchisees should also inquire about the specific services provided by the franchise sales broker and how they might impact the overall transfer process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.