Is the Pump It Up transfer fee refundable?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| Cable/Satellite | | | | | Television Fee (5) | | | |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee (1) | $10,000-$20,000 The fee will depend on level of initial training and support that the prospective transferee will require as part of the transfer. | $3,000 Transfer Deposit payable when we receive notice that you have identified a potential buyer and signed a purchase agreement; balance is due when PIU issues its consent to the transfer. | The Transfer Fee is not refundable. If the closing for the transfer does not occur and/or the prospective transferee has not fully completed our training program, we will not refund the Transfer Deposit. If during the 12-month period following your initial notice of the transfer, you identify another transferee, then we will apply the Transfer Deposit to the Transfer Fee for that |
Source: Item 6 — OTHER FEES (FDD pages 15–21)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the transfer fee is not refundable. The transfer fee ranges from $10,000 to $20,000, depending on the level of initial training and support the prospective transferee requires. A $3,000 transfer deposit is payable when Pump It Up receives notice that the franchisee has identified a potential buyer and signed a purchase agreement. The balance of the transfer fee is due when Pump It Up issues its consent to the transfer.
If the transfer does not occur or the prospective transferee does not complete the training program, Pump It Up will not refund the transfer deposit. However, if the franchisee identifies another transferee within 12 months of the initial notice of transfer, Pump It Up will apply the transfer deposit to the transfer fee for that new transferee. The FDD also notes that the transfer fee is subject to state law.
This non-refundable policy is a fairly standard practice in franchising. Transfer fees are intended to cover Pump It Up's administrative costs and expenses associated with reviewing and approving the transfer of ownership. Franchisees should carefully consider these terms before initiating a transfer, as the deposit is at risk even if the sale falls through. Franchisees should consult with a legal professional to understand their rights and obligations under applicable state laws regarding transfer fees.