Risk Score
Pending analysis
Investment Range
$104,200 - $661,190
Total US Locations
42
Business Summary
Pump It Up operates family entertainment centers that feature branded super-sized inflatable equipment and other active and creative games. These businesses offer various activities in playrooms called Arenas, where children and teens can participate in mentally and physically challenging games in a fun, safe, and clean environment. After playtime, guests move to party rooms for eating, opening presents, celebrating, or conducting team-building events. Pump It Up Businesses also provide food, beverages, paper goods, branded goodie bags, and other party add-ons. In addition to parties, Pump It Up generates revenue from Open Jump sessions, Camps, and Special Events. Facilities are typically 9,000 to 11,000 square feet, featuring two Arenas and two or three party rooms.
Corporate History
Pump It Up Holdings, LLC, the current franchisor, is an Arizona limited liability company formed in May 2015, and it began offering Pump It Up franchises in June 2015. The brand's history extends further back through its predecessors. PIU Holdings, LLC, a Delaware Limited Liability Company, operated as the franchisor from July 2008 until June 2015. Prior to that, PIU Management LLC, another Delaware limited liability company, was the initial entity that sold Pump It Up franchises from January 2002 to June 2008. The franchise agreements and rights were successively assigned from PIU Management LLC to PIU Holdings, LLC, and then to Pump It Up Holdings, LLC. The current franchisor's ultimate parent company is Outlier Holdings, LLC, through a chain of intermediary holding companies.
Financial Overview
Investment Range
$104,200 - $661,190
Franchise Fee (High)
$30,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$59,750
Equipment Costs (High)
$443,515
Working Capital
$47,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pump It Up Holdings, LLC's financial health is presented through the consolidated financial statements of its parent company, FB Holdings, LLC, which unconditionally guarantees Pump It Up Holdings, LLC's obligations. The auditors have issued an unqualified opinion for FB Holdings, LLC's financial statements for 2022, 2023, and 2024, indicating they present fairly, in all material respects, the financial position and results of operations. However, FB Holdings, LLC has reported negative working capital of -$229,269 in 2024 and -$193,136 in 2023, meaning its current liabilities exceed its current assets. Despite this, the company maintained positive net income of $1,690,253 in 2024 and $1,721,880 in 2023, and significant member's equity of $6,258,611 in 2024 and $5,828,358 in 2023.
Financing Details
Pump It Up Holdings does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other financial obligations of its franchisees.
Performance Metrics
Total US Locations
42
Franchised Units
42
Corporate Units
0
Avg Square Footage
10,000
Franchising Since
2002
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
3
Litigation Summary
Pump It Up Holdings does not have any pending litigation. The franchisor has been involved in three concluded lawsuits, all initiated by Pump It Up Holdings against former franchisees. The first case, filed in July 2019, involved trademark infringement and breach of contract. This lawsuit was settled in February 2021 with the former franchisee making payments, and a judgment was entered in April 2021 against other defendants. The second lawsuit, filed in June 2019, alleged a former franchisee breached their agreement by terminating early and operating a competing business at the same location; this case was settled in June 2021 with payments to Pump It Up Holdings. The third case, filed in September 2015, alleged former franchisees breached their agreement by operating a competing business and misusing Pump It Up's intellectual property; this lawsuit settled in November 2020, resulting in the former franchisees closing their business, agreeing to restrictive covenants, and making payments to Pump It Up Holdings. All these cases were resolved with outcomes favorable to Pump It Up Holdings and occurred more than three years before the FDD issuance date.
Bankruptcy History
Pump It Up Holdings has no bankruptcy history to report. Item 4 of the FDD states that no bankruptcy information is required to be disclosed for the franchisor or its affiliates.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Pump It Up franchise agreement, franchisees must provide 12 months' advance notice of their intent to renew. They must also be in full compliance with all existing agreements, demonstrate their right to continue possessing the business premises, and commit to remodeling their facility to meet the franchisor's then-current brand standards. This includes correcting any operational deficiencies and satisfying updated System Standards, which may involve additional training. Franchisees are required to pay a successor term fee, which can be up to 25% of the initial franchise fee charged to new franchisees at that time, and sign a general legal release. They must also sign the franchisor's then-current franchise agreement, which may have terms and conditions that are substantially different from their original agreement, potentially including higher royalty and brand fund contributions.
Training & Support Program
Franchisor Assistance
Pump It Up Holdings provides extensive assistance to its franchisees both before and after their business opens. Prior to opening, Pump It Up offers site selection guidelines and criteria, reviews and approves proposed sites, and provides mandatory and suggested specifications and layouts for the business, including design and construction plans. The franchisor also supplies a list of approved vendors for necessary equipment, inventory, and marketing materials. Initial training is provided to the franchisee or Operating Principal and managerial personnel, either in-person or virtually, followed by up to three days of on-site or virtual opening assistance. After opening, Pump It Up manages the Brand Fund for advertising and marketing, provides marketing guidelines, and continuously updates the System Standards. Ongoing support includes additional training courses, such as periodic conventions and regional meetings (which can be in-person or virtual), and consultation regarding operations through manuals, bulletins, electronic media, and direct conversations.
Initial Training Hours
65
Training Location
Corporate headquarters in Phoenix, Arizona
Ongoing Support
After their Pump It Up business opens, franchisees receive ongoing support through various channels. Pump It Up Holdings provides continuous recommendations and consultations regarding business operations via manuals, bulletins, emails, online resources, telephone calls, virtual webinars, and in-person meetings at its office, the franchise location, or other designated sites. Franchisees and their managerial personnel may be required to attend additional training courses, including periodic conventions, regional meetings, and conferences, which can be held in-person or virtually. Franchisees may also be required to utilize online training programs for themselves and their staff through the manuals and other online platforms.
Franchise Requirements
Ideal Candidate Profile
Pump It Up seeks individuals or entities to operate family entertainment businesses featuring inflatable equipment and games. Franchisees, or their designated Operating Principal, must be actively involved in overseeing the business operations, including regular visits to the location and consistent communication with Pump It Up to ensure compliance with the System Standards. If the franchisee is an entity, the Operating Principal must hold at least a 10% ownership interest and should not engage in any other business or activity that conflicts with their obligations to operate the Pump It Up Business. Pump It Up shows a preference for larger or more experienced prospective franchisees, including those with prior experience with PIU or its affiliates, or those transitioning from other franchise or licensed systems. All owners with a 5% or greater interest in the franchise are required to sign a personal guarantee for financial obligations. The ideal candidate should also be capable of independently recruiting, hiring, and training employees, and is expected to maintain the high standards of quality, operations, and service established by Pump It Up in a dynamic business environment.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
Yes
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Territory Size Requirements
Pump It Up Holdings defines its franchise territories as a "Protected Area" based on zip codes or other geographic features around the business premises. Typically, the Protected Area is defined as a one-mile radius around the location, though this radius may be adjusted to be larger or smaller depending on the local demographics. In certain regions, the Protected Area might be defined by specific metes and bounds. The initial "Site Selection Area" is determined on a case-by-case basis, taking into account economic, demographic, and geographic factors such as population density.
Staffing Notes
Pump It Up Holdings requires franchisees to take sole responsibility for recruiting, hiring, and training all employees for their Pump It Up business. Before hiring, franchisees must ensure all employees sign a non-disclosure and confidentiality agreement. The franchisor mandates appropriate criminal background checks and due diligence for all staff to meet ethical standards for working with children. Franchisees must comply with all state and local laws regarding staffing levels, on-premises management, required licenses, and staff-to-child ratios in the Arenas or event rooms. Employees must be of good character and reputation, conduct themselves competently and courteously, and adhere to the dress code, personal appearance, and hygiene standards outlined in the operations manuals.