Do you want to open a bounce house rental business by buying Pump It UP franchise? If YES, here is how much it cost to open Pump It UP franchise successfully. If you are looking towards opening a Pump It Up Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location.
Pump It Up was founded in 2000 and they began franchising in 2001, about 19 years ago. The current CEO is Lee Knowlton and they have their corporate head office at 1860 W. University Dr., #108 Tempe, AZ 85281. Presently, the company operates 150 franchises in the United States.
Pump It Up created the indoor inflatable center market in 2000 by moving inflatable recreation from the backyards and fairgrounds into a safe and comfortable private indoor party facility in Pleasanton, California. Pump It Up franchisees offer indoor entertainment centers filled with inflatables, for birthday parties, field trips and other special events for kids. Adults can also partake in corporate team building events at Pump It Up.
Pump It Up has custom bounce houses, slides, obstacles courses and more galore to show customers what the word inflatamania is all about. Once they’ve managed to drag all the happily exhausted kids out of there, the festivities continue in their own brightly decorated party room. Refreshments, fun and a fabulous throne await the guest of honor. And all along the way, their trained staff will help out with everything.
Financial Investment Required to Open a Pump It Up Franchise
Pump It Up has a franchise fee of up to $30,000 with a total initial investment range of. $366,250 to $790,000 Here are areas where you are expected to spend money and the cost associated with it;
Table of Content
- 1. Initial Investment Range: $366,250 to $790,00
- 2. Franchise Fee: $30,000
- 3. Royalty Fee: 6 percent of Gross Sales
- 4. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution
- Steps on How to Open a Pump It Up Franchise
- 1. Ensure you have adequate capitalization.
- 2. Appreciate the investment required for a restaurant franchise.
- 3. Evaluate your prior experience and strengths.
- 4. Assess market availability.
- 5. Submit your application.
- 6. Receive approval and open your Pump It Up franchise.
1. Initial Investment Range: $366,250 to $790,00
2. Franchise Fee: $30,000
3. Royalty Fee: 6 percent of Gross Sales
And the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.
Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.
4. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution
At least 1 percent per calendar year and the Due Date: for this is Monthly. Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.
Centers owned by Pump It Up and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative. If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.
- Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
- Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
- Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.
Please note that you must reimburse Pump It Up if it is held liable for claims arising out of your franchise operations.
- Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
- Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date: Due on receipt of invoice.)
Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.
- POS Hardware and Software: Depends upon vendor and products purchased. (Due Date: Depends upon vendor and products purchased.)
- Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date: As incurred.)
Payable to Pump It Up if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Pump It Up is required to defend your unsuccessful claim against it.
- Veteran Incentives: 25% off franchise fee
- Term of Agreement and Renewal: The length of the initial franchise term is 20 years. If requirements are met, franchisees can renew for one additional term of 10 years.
- Financial Assistance: Pump It Up offers in-house financing to cover the following: equipment but it is important to note that Pump It Up also has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, and inventory et al.
- Initial Investment: $366,250 – $790,000
- Net-worth Requirement $500,000
- Liquid Cash Requirement: $200,000
- Ongoing Initial Franchise Fee: $30,000
- Ongoing Royalty Fee: 6%
- Ad Royalty Fee: 2%
Steps on How to Open a Pump It Up Franchise
1. Ensure you have adequate capitalization.
In order to open the Pump It Up franchise, you must have a net worth of $500,000.
2. Appreciate the investment required for a restaurant franchise.
You will need to consider real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc.
3. Evaluate your prior experience and strengths.
You should thoroughly evaluate your prior business experience before applying to become a Pump It Up franchise owner.
4. Assess market availability.
You will want to look at the market availability for Pump It Up franchises and see if there are available markets in your location of interest before proceeding with the franchising application.
5. Submit your application.
Your application will be reviewed by the Pump It Up franchise team. You will be emailed a confirmation receipt upon reception of your online application, where we will additionally provide the contact details of the franchise owner.
6. Receive approval and open your Pump It Up franchise.
You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.