Is the Transfer Deposit for a Pump It Up franchise transfer refundable?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
nts or proposals, and all other information requested by us, relating to the proposed Transfer. Along with that required information, you must pay a transfer fee (the "Transfer Fee"). The Transfer Fee you will pay us is currently between $10,000 and $20,000 depending upon the amount of initial training and support that you will require. With your written notice of your intent to transfer the Franchised Business, you will pay us a deposit towards the Transfer Fee in the amount of $3,000 (the "Transfer Deposit"). The Transfer Deposit must be paid before the proposed Transferee arrives for the Training Program to cover our costs to begin to review the transfer documentatio
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the Transfer Deposit is generally non-refundable. When a franchisee intends to transfer their Pump It Up franchise, they must provide written notice and pay a $3,000 deposit towards the Transfer Fee. This Transfer Deposit is required before the proposed transferee begins the Training Program, and it covers the franchisor's costs to review the transfer documentation.
However, there is a specific circumstance where the Transfer Deposit can be applied to a future transfer. If the proposed transfer does not proceed and the prospective transferee has not participated in any part of the Training Program, Pump It Up will apply the $3,000 Transfer Deposit towards the Transfer Fee for any subsequent transfer that closes within 12 months of the initial transfer application.
This means that while the deposit is not returned to the franchisee in cash, its value can be used for a future transfer attempt within a limited timeframe. This provides some flexibility for franchisees who may have an initial transfer fall through but remain committed to selling their Pump It Up franchise. Franchisees should carefully consider these conditions and timelines when planning a transfer.