What was the variable lease cost for Pump It Up in 2024?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
tal | $ 751,063 | |
NOTE 5 MEMBER'S EQUITY
The Company has one class of membership interests and is 100% owned by a single member.
NOTE 6 OPERATING LEASES
The Company leases space for its corporate headquarters; this lease expires at the end of June
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 2024 was $44,560. This figure represents the portion of the lease expense that fluctuates based on factors such as sales or usage, as opposed to the fixed operating lease cost.
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 historical data and market conditions to forecast potential variable lease expenses accurately.
The FDD also provides variable lease costs for 2023, which was $66,212. Comparing these figures allows potential franchisees to understand trends in lease costs and their potential impact on the business's financial performance. This information helps in creating realistic financial projections and assessing the overall financial viability of a Pump It Up franchise.