When must the Transfer Deposit be paid for a Pump It Up franchise transfer?
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 the 2025 Pump It Up Franchise Disclosure Document, a $3,000 Transfer Deposit is required when providing written notice of intent to transfer a franchised business. This deposit covers the costs associated with reviewing the transfer documentation. The Transfer Deposit must be paid before the proposed transferee begins the Training Program.
It's important to note that the Transfer Deposit is non-refundable. However, if the transfer does not proceed and the prospective transferee hasn't participated in any part of the Training Program, the deposit can be applied to the Transfer Fee for a subsequent transfer that closes within 12 months of the initial transfer application. This provides some flexibility if the initial transfer falls through but the franchisee attempts another transfer relatively soon.
This requirement ensures that Pump It Up is compensated for the initial administrative work involved in reviewing potential franchise transfers, regardless of whether the transfer is ultimately completed. For a franchisee looking to sell their business, it's crucial to factor this non-refundable deposit into their financial planning and timeline for the transfer process.