What were the total operating expenses for Pump It Up in 2023?
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 | ||
| OPERATING EXPENSES | ||||
| Salaries and Related Benefits | 772,528 | 897,229 | ||
| Professional Fees | 90,434 | 61,092 | ||
| Office | 303,299 | 490,899 | ||
| Occupancy | 178,251 | 206,086 | ||
| Advertising | 2,125 | - | ||
| Depreciation and Amortization | 318,055 | 317,915 | ||
| Other General and Administrative Expenses | 11,582 | 5,445 | ||
| Total Operating Expenses | 1,676,274 | 1,978,666 | ||
| INCOME FROM OPERATIONS | 1,440,253 | 1,642,706 | ||
| OTHER INCOME | ||||
| Other Income | 250,000 | 79,174 | ||
| Total Other Income | 250,000 | 79,174 | ||
| NET INCOME | $ 1,690,253 | $ 1,721,880 |
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 operating expenses for 2023 were $1,978,666. These expenses encompass several categories, offering insight into where Pump It Up allocates its resources.
The most significant expense was Salaries and Related Benefits, amounting to $897,229. Other notable expenses included Office costs at $490,899, Depreciation and Amortization at $317,915, and Occupancy expenses totaling $206,086. Professional Fees accounted for $61,092, while Other General and Administrative Expenses were $5,445. Advertising expenses were not listed as an expense in 2023.
Understanding these operating expenses is crucial for prospective franchisees. It provides a benchmark for the costs associated with running the Pump It Up franchise and helps in forecasting potential profitability. Franchisees can use this information to compare their own expenses and identify areas where they may be able to reduce costs or improve efficiency. It's important to note that these figures represent the expenses of Pump It Up itself, and individual franchise locations may vary based on factors such as location, size, and operational choices.