What was the total amount of franchise fees collected by Pump It Up in 2024?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |||
|---|---|---|---|---|
| REVENUE | ||||
| Royalties | $ 2,328,873 | $ 2,718,682 | ||
| Brand Fund Fees | 724,154 | 834,690 | ||
| Franchise Fees | 63,500 | 68,000 | ||
| Total Revenue | 3,116,527 | 3,621,372 |
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the company collected $63,500 in franchise fees during the year 2024. This figure is part of the overall revenue reported by Pump It Up, which also includes royalties and brand fund fees. The franchise fees contribute to the total revenue of $3,116,527 for 2024.
For a prospective franchisee, this indicates the scale of franchise fee income Pump It Up generates, which is substantially smaller than their revenue from royalties. Franchise fees are typically charged to new franchisees when they join the Pump It Up system.
It's important to note that Pump It Up recognizes these initial franchise fees ratably over the term of the franchise agreement, which is typically 10 years. This accounting practice means that the $63,500 collected in 2024 may represent fees from franchise agreements signed in prior years as well as new agreements signed in 2024. This revenue recognition method is a standard accounting practice in the franchise industry, aligning the revenue with the ongoing services and support provided to franchisees throughout the term of their agreement.