What was the variable lease cost for Pump It Up in 2022?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| The following table provides quantitative information concerning the Company’s leases. | ||
|---|---|---|
| 2023 | 2022 | |
| Operating Lease Cost | $139,874 | $141,470 |
| Variable Lease Cost | 66,212 | 63,485 |
| Total Lease Cost | $206,086 | $204,955 |
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, the variable lease cost for the company in 2022 was $63,485. This figure represents the portion of lease expenses that fluctuate based on factors like sales volume or other performance metrics, as opposed to the fixed operating lease costs.
For a prospective Pump It Up franchisee, understanding the breakdown between operating and variable lease costs is crucial for financial planning. Variable lease costs can impact profitability, especially during periods of lower sales. Franchisees should analyze how these costs are calculated and what factors might cause them to fluctuate.
It's important to note that these figures reflect Pump It Up's corporate leases, and an individual franchisee's lease costs may vary significantly depending on location, lease terms, and other factors. Therefore, prospective franchisees should carefully review their own lease agreements and financial projections to understand their specific lease obligations.