What were the total lease payments for Pump It Up as of December 31, 2024?
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 2027 with a five-year renewal option. The facility lease provides for increases in future minimum monthly rental payments at a rate of 3% annually. Monthly payments also include certain common area maintenance charges.
The following table provides quantitative information concerning the Company's leases.
| 2024 | 2023 | |
|---|---|---|
| Operating |
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 total lease cost as of December 31, 2024, was $178,251. This figure is broken down into two components: operating lease costs of $133,691 and variable lease costs of $44,560. In comparison, the total lease cost for the previous year, 2023, was $206,086, with operating lease costs of $139,874 and variable lease costs of $66,212.
Additionally, the FDD provides insight into the cash paid for amounts included in the measurement of lease liability. For operating cash flows from operating leases, the amount was $124,145 in 2024, compared to $127,869 in 2023. The weighted-average remaining lease term for operating leases was 7.4 years in 2024, a decrease from 8.4 years in 2023. The weighted-average discount rate for operating leases remained constant at 1.63% for both years.
This information is crucial for prospective Pump It Up franchisees as it provides a clear picture of the company's lease obligations and how they have changed over the past two years. Understanding these costs and lease terms can help franchisees better assess the financial stability of the franchisor and plan for their own potential lease expenses when establishing their franchise location. Reviewing these figures in the FDD helps potential franchisees understand the financial health and lease management practices of Pump It Up.