Bottom line
- Total investment $104K – $661K including a $30K franchise fee, 6.0% ongoing royalty.
- Average unit revenue of $735K/year (median $631K).
- Rated MODERATE with a risk score of 55/100. SBA loan default rate of 0.0% across 120 loans (below the industry average).
- System contracting at -12.5% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Pump It Up unit return on the cash you put in?
Unlevered ROIC · per unit
26%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Pump It Up units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.2M
on $5.9M purchase
Total debt
$4.7M
SBA $2.9M + senior + seller note
Overview
About
Pump It Up franchisees operate indoor children's entertainment venues featuring inflatable bounce houses, obstacle courses, and interactive play structures. Day-to-day operations include birthday party hosting, open-play sessions, staff management, facility maintenance, cleaning/sanitization protocols, and customer acquisition through local marketing and school partnerships.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 19 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Declining franchisee base, hidden profitability data, litigation history, and high capital requirements create meaningful investment risk despite protected territories and moderate average revenues.
Score breakdown · what drove the 55 / 100 rating
- 01MEDUnit count declined 8.7% YoY (42 units), indicating system contraction and potential market saturation or franchisee struggles
- 02MEDNo average net income disclosed in FDD Item 19, making ROI analysis impossible and suggesting weak performer metrics the franchisor wants hidden
- 03MINORThree concluded lawsuits involving trademark infringement, breach of contract terminations, and misuse of proprietary materials indicate operational/compliance friction and aggressive enforcement history
- 04MINORHigh investment ceiling ($661,190) relative to modest average revenue ($735,075) creates thin margin for error and extended payback periods
- 05MINOR6% royalty on gross revenues (not net) means franchisees pay during unprofitable months, exacerbating cash flow pressure in declining system
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
47 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Pump It Up · FDD (2025) PDF