Pump It Up Franchise Cost, Revenue & Review 2026
- Investment
- $104K – $661K
- Disclosed sales
- $735K
- gross sales, not profit
- SBA charge-off
- 16.3%
- on 98 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Pump It Up is a children's entertainment franchise operating indoor arenas filled with inflatable bounce houses and slides. Franchisees run the venues, managing private parties, open play, staffing, and safety.
FranchiseVerdict summary · 2026
A Pump It Up franchise requires a total initial investment of $104K – $661K, including a $30K franchise fee and an ongoing 6.0% royalty[2]. Per the 2025 FDD, average unit revenue was $735K[2]. SBA 7(a) loans show a 16.3% charge-off rate across 98 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $104K – $661K
- 9th pct Recreation & …
- Avg gross sales
- $735K
- Outlet subset7th pct Recreation & …
- Royalty
- 6.0%
- 9th pct Recreation & …
- Units
- 42
- 38th pct Recreation & …
- SBA charge-off
- 16.3%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Recreation & Entertainment · color = vs category peers
Green = favorable by >10% vs Recreation & Entertainment median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $104K – $661K including a $30K franchise fee, 6.0% ongoing royalty.
- RETURNSAverage unit revenue of $735K/year (median $631K) (reported for a subset of outlets rather than the whole system).
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 16.3% across 98 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -4 franchised outlets in the latest year (0 opened, 4 closed); 3 signed but not yet open (Item 20).
- DECLINESystem 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
Corporate structure & franchisor financials
- Legal entity
- Pump It Up Holdings, LLC
- Parent company
- FB Holdings, LLC
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- Outlier Holdings, LLC
- FDD Item 1, page 9 of the 2025 FDD
- Predecessor
- PIU Holdings, LLC (predecessor 2008-2015); PIU Management LLC (predecessor 2002-2008)
- Prior franchisor entity
- CEO title
- Chairman & Chief Executive Officer
- David Tedesco
- Incorporated in
- Arizona
- HQ
- 4343 E. Outlier Blvd., Suite 220, Phoenix, AZ 85008
- Auditor
- CliftonLarsonAllen LLP
- Audited financials
- Franchisor revenue
- $3.3M
- vs $3.6M prior year
Same owner · FDD Item 1, page 9
1 other brand on this site name Outlier Holdings, LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2025 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
Overview
About
- CEO
- David Tedesco
- Headquarters
- AZ
- FDD year
- 2025
- States available
- 18
Can you afford it, and what does the money buy?
Entry cost runs 32% below the typical recreation & entertainment franchise.
Source: FDD 2025 · Items 5–7
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $30K | $30K |
| Working capital (3–6 mo) | $20K | $75K |
| Equipment, build-out, other | $54K | $556K |
| Total initial investment | $104K | $661K |
Source: Pump It Up 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $104K – $661K
- Top 40% of category vs category
- Liquid capital req'd
- $20K – $75K
- Top 40% of category vs category
- Franchise fee
- $30K – $30K
- Top 40% of category vs category
- Royalty
- 6.0%
- typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.0% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Transfer fee | $20K |
| Renewal fee | $8K |
| Inventory (initial) | $3K – $5K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales land near the recreation & entertainment norm.
Reported for a subset of outlets rather than the whole system
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Pump It Up until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$430K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Pump It Up unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
- Avg gross sales
- $735K
- Per unit, per year
- Median gross sales
- $631K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales
- Sample size
- 40 outlets
- vs category median 5 · large
- Range (low → high)
- $240K→$1.9MCited, not corroborated — printed on page 51 of the 2025 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 165 Recreation & Entertainment brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $735K/year in gross sales. Revenue-to-investment ratio: 1.9x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.0% (near the Recreation & Entertainment median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -12.5% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Recreation & Entertainment medians
How Pump It Up Compares
Category median of published Recreation & Entertainment brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 42
- Opened
- 0
- Last reporting year
- Closed
- 4
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- N/A
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -12.5%
- Net unit change over 3 years
- 3-yr CAGR
- -12.5%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 4
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 3
- 0.07 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
42 current owners across 18 states.
- CA 12
- TX 7
- MI 3
- AL 2
- FL 2
- NJ 2
- OH 2
- VA 2
- IA 1
- KS 1
- MD 1
- MN 1
- +6 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 98
- Loan volume
- $33.9M
- Median loan
- $246K
- 50th percentile
- Charge-off rate
- 16.3%
- on 98 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 83.7%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 49
- Defaults
- 15
- Typical loan rate
- 6.4%
- avg rate to borrowers
- Franchised industry avg
- 13.9%
- brand above franchise avg ↑
- Jobs supported
- 1,712
- 5.1 per loan
- Lender concentration
- 7%
- top lender's share
Borrower mix: 33% went to startups / new businesses, 67% to established operators
Franchise vs independent — in all other amusement and recreation industries, franchised businesses charge off at 13.9% vs 16.2% for independents — franchising is associated with 14% lower SBA default risk in this category.
Vintage analysis
Pump It Up charge-off rate by loan vintage
Top lenders financing Pump It Up franchisees
Showing 3 of 49 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Pump It Up from SBA 7(a) FOIA data.
- Principal loss rate
- 12.9%
- Avg SBA guarantee
- 73%
- Avg interest rate
- 6.39%
- Avg chargeoff amount
- $290K
- Lender concentration
- 7.1%
- Job velocity
- 5.1 per $100K
- NAICS benchmark
- 7.0%
- NAICS 713990
- Jobs supported
- 1,712
Top SBA lendersTop lender holds 7% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | PNC Bank, National Association | 7 | $1.5M | 0.0% |
| 2 | Wells Fargo Bank National Association | 7 | $1.9M | 14.3% |
| 3 | First Bank | 6 | $2.8M | 66.7% |
| 4 | The Huntington National Bank | 4 | $870K | 25.0% |
| 5 | Simmons Bank | 3 | $502K | 0.0% |
| 6 | Zions Bank, A Division of | 3 | $610K | 33.3% |
| 7 | First Horizon Bank | 3 | $675K | 0.0% |
| 8 | Columbia Bank | 3 | $912K | 0.0% |
| 9 | Popular Bank | 3 | $1.8M | 33.3% |
| 10 | Community West Bank | 3 | $641K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| TXTexas | 21 | 5 | 23.8% |
| CACalifornia | 14 | 1 | 7.7% |
| MDMaryland | 11 | 2 | 18.2% |
| NJNew Jersey | 7 | 0 | 0.0% |
| MIMichigan | 6 | 1 | 20.0% |
| OHOhio | 5 | 0 | 0.0% |
| VAVirginia | 5 | 0 | 0.0% |
| ILIllinois | 4 | 0 | 0.0% |
| KSKansas | 3 | 0 | 0.0% |
| NCNorth Carolina | 3 | 1 | 33.3% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Established children's entertainment franchisor (since 2002, 42 units) with 3 concluded suits, all brought BY the franchisor against former franchisees and resolved in its favor with no adverse consequences. No bankruptcy or going-concern. Main flag is a contracting system (net growth -12.5%).
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
3 concluded cases, all filed by franchisor against former franchisees for trademark infringement/breach of franchise agreement/unauthorized competing operation; no pending litigation; all resolved via settlement or judgment in franchisor's favor with no adverse consequences to franchisor
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · CliftonLarsonAllen LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Kickbacks from required suppliers: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 40 / 100 verdict
- 01MINOR3 concluded suits all filed by franchisor, resolved favorably, none pending
- 02MINORSystem contraction: net_growth -12.5%
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 1 mi |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | No |
| Jury trial waiver | Yes |
| Governing law | Arizona |
| Litigation count | 3 |
View Item 3 litigation summary
3 concluded cases, all filed by franchisor against former franchisees for trademark infringement/breach of franchise agreement/unauthorized competing operation; no pending litigation; all resolved via settlement or judgment in franchisor's favor with no adverse consequences to franchisor
Items 10, 11
Training & Operations
- Classroom training
- 40 hrs
- On-the-job training
- 24 hrs
- Franchisor financing
- Not offered
- Item 10
- POS system
- POpS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POpS System
Item 20 · call current owners
Franchisee Contacts
42 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Pump It Up franchise?
The total investment to open a Pump It Up franchise ranges from $104K – $661K, with an initial franchise fee of $30K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Pump It Up franchise owners earn?
According to Item 19 of the Pump It Up FDD, the average gross sales per unit is $735K. The median is $631K. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Pump It Up?
Pump It Up is franchised by Pump It Up Holdings, LLC. Its parent company is FB Holdings, LLC. The ultimate parent named in the FDD is Outlier Holdings, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Pump It Up FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Pump It Up FDD and qualifies whose outlets they describe.
What is Pump It Up's franchise failure rate?
Based on SBA 7(a) loan data, Pump It Up has a charge-off rate of 16.3% across 98 loans, meaning 16.3% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Pump It Up franchise locations are there?
As of their most recent FDD filing, Pump It Up has 42 total units in the United States, including 42 franchised units and 0 company-owned units.
Is Pump It Up a good franchise to buy?
FranchiseVerdict rates Pump It Up as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.