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Pump It Up Franchise ProfileEntertainment Franchises > Family Entertainment Centers |
What Are the Initial Investment Requirements for Pump It Up Franchise?
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.
What Are the Financial Performance Metrics for Pump It Up Franchise?
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.
What Are the Ongoing Fees Associated with Pump It Up Franchise?
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.
How Many Pump It Up Franchises Are Currently Operating?
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.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
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 |
Investment Overview
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.
Revenue Potential
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.
Breakeven and Payback Period
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.
Franchise Growth
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
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.
Franchise Support
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.