When is the Royalty fee due for a Pump It Up franchise?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Due Date | Remarks | |
|---|---|---|---|
| Royalty (1), (2), (3) | 6% of Gross Revenues | On or before the 7th day of each month. We have the right to modify when and how Royalties are due and payable. | The royalty is based you’re your Gross Revenues in the preceding month, and is payable to us by an automatic, electronic debit from your business checking account. |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the royalty fee is due on or before the 7th day of each month. The royalty is 6% of gross revenues from the preceding month. Pump It Up requires royalty payments to be made via automatic electronic debit from the franchisee's business checking account. Pump It Up retains the right to modify when and how royalties are due and payable.
It is common practice in the franchise industry for royalty fees to be a percentage of gross revenue. The frequency of payment, typically monthly or weekly, can vary among franchisors. The 2025 FDD specifies that Pump It Up collects royalties via electronic debit, which is a fairly standard practice designed to ensure timely and consistent payments.
Prospective Pump It Up franchisees should be aware that failure to report gross revenues may result in Pump It Up debiting 120% of the highest monthly royalty and brand fund contribution previously debited. If there is no prior debit history, Pump It Up will determine the debit amount at its sole discretion based on other franchisees' payments. This highlights the importance of accurate and timely reporting of gross revenues to avoid potential overcharges and reconciliation processes.