What was the total amount of lease payments for Pump It Up, as of the provided date?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
tal | $ 751,063 | |
NOTE 5 MEMBER'S EQUITY
The Company has one class of membership interests and is 100% owned by a single member.
NOTE 6 OPERATING LEASES
The Company leases space for its corporate headquarters; this lease expires at the end of June
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the total lease cost for 2024 was $178,251, while in 2023, it was $206,086. This total lease cost includes both operating lease costs and variable lease costs. In 2024, the operating lease cost was $133,691 and the variable lease cost was $44,560. In 2023, the operating lease cost was $139,874 and the variable lease cost was $66,212.
These figures represent Pump It Up's expenses for leasing its corporate headquarters. The lease for the corporate headquarters expires at the end of June 2027 and includes a 5-year renewal option. The facility lease provides for increases in future minimum monthly rental payments at a rate of 103% annually, and monthly payments include certain common area maintenance charges.
For a prospective franchisee, this information provides insight into the lease-related financial obligations of Pump It Up. While this data reflects the corporate headquarters' lease costs, it does not directly translate to the potential lease expenses a new franchisee might incur for their individual location. Franchisees should conduct thorough market research to understand local commercial real estate costs and negotiate favorable lease terms to ensure profitability.