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Pump It Up Franchise ProfileEntertainment Franchises > Family Entertainment Centers |
To open a Pump It Up franchise, you will need to prepare for a significant initial investment ranging from $104,200 to $658,690. This includes a franchise fee of $30,000. It's essential to have a cash reserve that meets or exceeds the lower end of this range, along with a net worth requirement between $300,000 and $500,000. Understanding these financial commitments is crucial for aspiring franchisees to ensure they are adequately prepared for the investment journey ahead.
The average annual revenue per Pump It Up unit is approximately $812,241, with a median revenue of $1,712,404. The revenue can vary widely, with the lowest reported annual revenue at $259,812 and the highest at $1,883,523. Franchisees can expect a breakeven period of around 24 months, and the investment payback period is notably favorable at just 8 months, making it an attractive option for potential investors.
Franchisees of Pump It Up are required to pay a royalty fee of 6% on their gross revenue, along with a marketing fee of 2%. These ongoing costs are essential for maintaining brand visibility and operational support. Understanding these fees will help you plan your financial strategy and ensure that your franchise remains profitable while benefiting from the franchise's marketing and operational resources.
As of 2023, there are 46 Pump It Up franchised units, showing a slight decline from 54 units in 2021. This trend indicates a need for potential franchisees to consider market saturation and competitive dynamics when evaluating the opportunity. With no corporate-owned units, the franchise primarily relies on its franchisee network, emphasizing the importance of each franchisee's success in driving brand growth and stability.
Pump It Up Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
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Pump It Up Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
Units | 2021 | 2022 | 2023 |
---|---|---|---|
Total Units | 54 | 48 | 46 |
Net Change YoY | -6 | -2 | |
Franchised Units | 54 | 48 | 46 |
Net Change YoY | -6 | -2 | |
Corporate Units | 0 | 0 | 0 |
Net Change YoY | 0 | 0 |
The Pump It Up franchise offers a range of initial investment costs, with figures ranging from $104,200 to $658,690. This includes a franchise fee of $30,000 and ongoing royalty fees set at 6% of gross sales, along with a marketing fee of 2%. Prospective franchisees should have a net worth between $300,000 and $500,000 to qualify for ownership.
Average annual revenue per Pump It Up unit is approximately $812,241, with a median revenue of $1,712,404. Revenue can vary significantly, with the lowest annual revenue reported at $259,812 and the highest reaching $1,883,523. This potential for high revenue makes Pump It Up an attractive option for franchise investors.
Franchisees can expect to reach breakeven within 24 months of operation, which is a reasonable timeframe in the franchise industry. Moreover, the investment payback period is notably short, averaging just 8 months, allowing franchisees to recoup their initial investment relatively quickly.
The number of franchised Pump It Up units has experienced a decline, with 54 units in 2021, 48 in 2022, and 46 in 2023. This trend indicates a need for potential franchisees to evaluate market conditions and competition carefully before entering the system.
Operating expenses for Pump It Up units total approximately $1,978,666 annually, which comprises 54.4% of revenue. Key expenses include salaries and related benefits at $897,229, alongside professional fees, occupancy costs, and general administrative expenses. Understanding these costs is crucial for effective financial planning.
Pump It Up provides comprehensive support to its franchisees, including training programs, marketing assistance, and operational guidance. This support system is essential for new franchise owners to navigate the challenges of running their business and to optimize their profitability in a competitive environment.
Frequently Asked Questions
The initial investment for a Pump It Up franchise ranges from $104,200 to $658,690, which includes the franchise fee and other startup costs.