What is the total carrying amount for Pump It Up's intangible assets?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Carrying | Accumulated | Carrying | ||
|---|---|---|---|---|
| Amount | Amortization | Amount | ||
| Trademarks and Trade Names | $ 5,628,000 | $ - | $ 5,628,000 | |
| Franchise Contract | 2,882,039 | (2,196,357) | 685,682 | |
| Intangible Assets | $ 8,510,039 | $ (2,196,357) | $ 6,313,682 | |
| Amount | Amortization | Amount | ||
| Trademarks and Trade Names | $ 5,628,000 | $ - | $ 5,628,000 | |
| Franchise Contract | 2,882,039 | (1,982,741) | 899,298 | |
| Intangible Assets | $ 8,510,039 | $ (1,982,741) | $ 6,527,298 |
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's intangible assets had a net carrying amount of $6,527,298 in 2023 and $6,313,682 in 2022. These intangible assets consist primarily of trademarks and trade names, as well as franchise contracts. The gross carrying amount for intangible assets was $8,510,039 for both years.
The franchise contract component of intangible assets had a gross carrying amount of $2,882,039 in both 2022 and 2023. Accumulated amortization for franchise contracts was $(1,982,741) in 2023 and $(1,769,125) in 2022. This resulted in a net carrying amount for franchise contracts of $899,298 in 2023 and $1,112,914 in 2022.
Understanding the composition and valuation of these intangible assets is crucial for prospective Pump It Up franchisees. Intangible assets like trademarks and franchise agreements are vital to the brand's identity and operational rights. The values presented reflect how Pump It Up assesses these assets on its balance sheet, considering both their initial value and any accumulated amortization. Franchisees should be aware of how these assets contribute to the overall financial health and stability of the franchise system.