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Pump It Up Franchise Costs, Fees & Profits

Pump It Up Franchise Costs, Fees & Profits (2024)

Here’s what you need to know if you’re interested in opening a Pump It Up franchise.

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KEY FRANCHISEE INFORMATION

Here are the most important stats to know for franchisees.

NUMBER OF LOCATIONS

48

INITIAL INVESTMENT

$104,000 – $659,000 

ROYALTY FEE

6.00%
revenue

REVENUE PER YEAR

$617,000

Pump It Up, established in 2000 in Pleasanton, California, pioneered the indoor inflatable play industry. Recognizing the potential for growth beyond individual locations, they began franchising in 2003. Today, Pump It Up boasts a network of franchisees offering inflatable fun for children across the country.

Headquartered in Tempe, Arizona, Pump It Up locations are havens for energetic youngsters, featuring giant inflatable slides, obstacle courses, bounce houses, and themed play areas. These vibrant spaces cater to a variety of occasions, including birthday parties, school field trips, corporate events, and open play sessions.

What sets Pump It Up apart is its focus on providing a safe, stimulating environment for children of all ages. Their inflatables are meticulously maintained and comply with stringent safety standards. Beyond just bouncing fun, Pump It Up encourages physical activity, social interaction, and imaginative play.

Number of locations

TOTAL UNITS
48
FRANCHISED UNITS
48

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Initial investment

INITIAL INVESTMENT
$104,000 $659,000 

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Franchise fees & Royalties

ROYALTY FEE
6.00%

Initial Franchise Fee

The initial franchise fee for one Franchised Business is $30,000, payable as a lump sum at the time the Franchise Agreement is signed. This fee is for the rights to operate a Pump It Up franchise and is partially refundable under certain conditions as described in the document.

Royalty Fee

A royalty fee of 6% of Gross Revenues is due monthly. This ongoing fee is for the continued support provided by the franchisor and the rights to use the franchisor’s intellectual property.

Brand Fund Contribution

Franchisees are required to contribute 2% of their Gross Revenues per fiscal period to the Brand Fund. This contribution, which may increase to up to 3%, supports brand-wide marketing and advertising efforts.

Local Store Marketing

Franchisees must invest the greater of 2% of Gross Revenues or $12,000 annually in local store marketing. This expenditure supports localized marketing efforts to drive business to the franchise.

Co-op Contribution

If applicable, a Co-op Contribution may be required, which, combined with the Brand Fund Contribution and required Local Store Marketing Contribution, will not exceed 6% of Gross Revenues. This contribution supports regional advertising efforts.

Hardware and Software Upgrade

Franchisees may incur costs ranging from $100 to $2,000 for mandatory hardware and software upgrades. These upgrades ensure that the franchise remains technologically current and competitive.

Profits

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How to apply

1. Initial Inquiry and Review

  • Submit an Inquiry: Indicate your interest by submitting an inquiry on the Pump It Up website. A franchise development team member will reach out to schedule a call.
  • Review The Website: Use the official website as a resource to understand the franchise opportunity and ensure Pump It Up aligns with your goals.

2. Application and Qualification

  • Submit an Application: Ensure you meet the financial requirements, including a minimum net worth of $500,000 and $200,000 in liquid funds ($100,000 if purchasing an existing store).
  • Complete the Franchisee Qualification Process: This involves an introductory phone interview, signing a confidentiality agreement, reviewing the Franchise Disclosure Document (FDD), and more. This stage aims to assess your fit with the brand and provides you with detailed information about the franchise.

3. Territory Selection and Agreement

  • Complete Steps After the Exploratory Call: Work with the development team to assess territories, complete a financial worksheet, and participate in a formal territory review. This phase culminates in a Discovery Day in Phoenix, AZ, or a video conference, leading to a yes/no decision and the execution of the franchise agreement.

4. Site Selection and Development

  • Select A Site: Collaborate with a local real estate broker to find the ideal location. Develop building layouts and architectural plans with the help of Pump It Up’s team to ensure the construction schedule remains on track.

5. Store Opening Preparation

  • Complete the Store Opening Process: Follow a comprehensive checklist and engage in weekly calls with a pre-opening specialist to ensure your store is ready to open on time and fully operational.

6. Promotion and Opening

  • Promote Your Opening: About four weeks before opening, collaborate with the Pump It Up Mission Control team for marketing and promotional efforts to ensure the community knows about your new business.
  • Open Your Pump It Up: Begin your journey as a Pump It Up franchisee, providing memorable birthday parties and events with ongoing support from the corporate team.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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