What was the total value of Pump It Up's liabilities in 2023?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
and Subsidiaries' ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
CliftonLarsonAllen LLP
Phoenix, Arizona March 26, 2025
FB HOLDINGS, LLC AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2024 AND 2023
| 2024 | 2023 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS Cash and Cash Equivalents Accounts Receivable, Net Prepaid Expenses Total Current Assets | $ 307,561 194,642 4,784 506,987 | $ 481,057 298,737 4,661 784,455 |
| PROPERTY AND EQUIPMENT, Net | 57,722 | 77,790 |
| OPERATING RIGHT OF USE ASSET, Net | 939,567 | 1,133,349 |
| OTHER ASSETS Deposits Goodwill, Net Intangible Assets, Net Total Other Assets | 18,997 65,381 6,313,682 6,398,060 | 18,997 148,441 6,527,298 6,694,736 |
| Total Assets | $ 7,902,336 | $ 8,690,330 |
| LIABILITIES AND MEMBER'S EQUITY | ||
| CURRENT LIABILITIES Accounts Payable Accrued Expenses Other Deferred Revenue Current Portion of Deferred Franchise Fees Current Lease Liability - Operating Total Current Liabilit |
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 liabilities in 2023 were $2,861,972. This figure represents the sum of the company's current liabilities ($977,591) and long-term liabilities ($1,884,381) at the end of the year.
Current liabilities include accounts payable ($3,592), accrued expenses ($836,371), other deferred revenue ($12,500), the current portion of deferred franchise fees ($11,500), and the current lease liability for operating leases ($113,628). Long-term liabilities consist of amounts due to a member ($800,511), deferred franchise fees net of the current portion ($28,967), and the operating lease liability net of the current portion ($1,054,903).
For a prospective Pump It Up franchisee, understanding the franchisor's liabilities can provide insight into the company's financial stability and its ability to support its franchisees. A high level of liabilities may indicate a higher risk for the franchisee, as it could impact the franchisor's ability to invest in the brand or provide necessary services. Therefore, reviewing the franchisor's balance sheet and understanding the nature of its liabilities is a crucial part of the due diligence process.
It is important to note that these figures are based on the financial statements of FB Holdings, LLC and Subsidiaries, which includes Pump It Up Holdings, LLC. Prospective franchisees should consult with a financial advisor to fully understand the implications of these liabilities and how they might affect the franchise opportunity.