A defensible 2025 pre-tax operating-earnings proxy for a U.S. Pump It Up Rotation Unit is approximately $93,000 to $181,000 per year, with a base case near $125,000. The strongest official evidence is the 2026 Franchise Disclosure Document's separate 2024 result: $144,110 median operating income and $176,617 average operating income, both defined as EBITDA, across 26 reporting units.
The $93,000-$181,000 range is an independent analytical scenario, not an Item 19 financial performance representation by Pump It Up Holdings, LLC. It combines identified 2026 FDD facts with explicitly labeled assumptions that 2024 EBITDA margins remained applicable to 2025 Gross Revenue. Actual results can differ materially by location, unit format, sales, labor, occupancy, financing, owner involvement, maintenance needs, and execution.
- Legal franchisor
- Pump It Up Holdings, LLC; parent FB Holdings, LLC; ultimate parent Outlier Holdings, LLC.
- Disclosure document
- 2026 U.S. Franchise Disclosure Document, issued April 20, 2026. No matching public FDD was located on a franchise-controlled domain, so FDD citations below are plain-text Item and page references.
- Item 19 status
- Official Gross Revenue for 2023-2025 and official unaudited 2024 Net Operating Income (EBITDA) for 26 Rotation Units.
- Applicable population
- Rotation Units or Double Units; all current new franchise sales are Rotation Units. Two Single Units were excluded from the revenue disclosure.
- Supplemental sources
- Official Pump It Up franchise pages, Federal Trade Commission guidance, and U.S. Bureau of Labor Statistics wage data.
- Date checked
- July 17, 2026.
Item 19's median Net Operating Income (EBITDA), not personal take-home pay.
The corresponding official average EBITDA margin is 19%.
Revenue across 37 reporting Rotation or Double Units; revenue is not earnings.
26 complete 2024 P&Ls compared with 40 units in the 2024 Gross Revenue population.
6% Royalty, 2% Brand Fund, and generally 2% Local Store Marketing at the base revenue level.
What does the 2026 Pump It Up FDD actually report?
Officially, Item 19 reports EBITDA rather than owner salary or distributions. For calendar year 2024, the franchisor disclosed unaudited Net Operating Income (EBITDA) for 26 Pump It Up Rotation Units: highest $552,240, median $144,110, and average $176,617. The reported EBITDA percentages were 29%, 17%, and 19%, respectively. These are business-level operating measures before interest, taxes, depreciation, and amortization, not after-tax cash to an individual owner. Source: 2026 FDD, Item 19, pages 43-46.
The 2025 table's average Gross Revenue was $658,892 and median was $562,318 across 37 reporting Rotation or Double Units. The official average fell 10.4% from 2024, while the median fell 10.8%. That makes the older 2024 EBITDA result useful but not automatically transferable to 2025 without a margin-stability assumption.
| Official Item 19 measure | Value | Population and period | Interpretation |
|---|---|---|---|
| Median Net Operating Income (EBITDA) | $144,110 | 26 Rotation Units, 2024 | Central EBITDA observation; not owner take-home pay. |
| Average Net Operating Income (EBITDA) | $176,617 | 26 Rotation Units, 2024 | Average can be pulled upward by stronger units. |
| Average EBITDA margin | 19% | 26 Rotation Units, 2024 | Used as the base 2025 scenario margin. |
| Average Gross Revenue | $658,892 | 37 Rotation or Double Units, 2025 | Current revenue anchor; excludes two Single Units. |
| System outlets at year-end | 39 | Franchised outlets, Dec. 31, 2025 | Item 20 shows no company-operated Pump It Up outlets. |
Why is the confidence rating Moderate rather than High?
The disclosure is same-brand and current, but its earnings population is incomplete and its owner-pay treatment is not sufficiently explicit. The 26-unit P&L sample represents 65% of the 40 units in the 2024 revenue table. The disclosure excludes units that did not provide complete 2024 Profit & Loss Statements, uses unaudited franchisee submissions, and says the statement concerns EBITDA and Owner Compensation without separately showing or defining Owner Compensation. The FDD also says accounting methods were not dictated and were believed to be cash-based.
How is the $93,000-$181,000 earnings range calculated?
The range applies official 2024 operating margins to official 2025 Gross Revenue anchors. The Conservative case uses the South Region's 2025 average Gross Revenue and 2024 average EBITDA margin; the Base case uses systemwide averages; the Upside case uses the West Region's corresponding averages. These are analytical cases, not probabilities or franchisor forecasts.
Same-brand inputs; rounded headline range is $93,000-$181,000.
Interpretation: the Base case is lower than the official 2024 average EBITDA because 2025 systemwide average Gross Revenue was lower than 2024.
Source and formula: 2026 FDD, Item 19, pages 42-45. Conservative: $547,491 × 17% = $93,073. Base: $658,892 × 19% = $125,189. Upside: $950,345 × 19% = $180,566. Calculations use full-precision inputs and round only for display.
- Conservative South Region 2025 average Gross Revenue of $547,491 multiplied by the South Region's 2024 average EBITDA margin of 17%.
- Base Systemwide 2025 average Gross Revenue of $658,892 multiplied by the 2024 systemwide average EBITDA margin of 19%.
- Upside West Region 2025 average Gross Revenue of $950,345 multiplied by the West Region's 2024 average EBITDA margin of 19%.
- Critical assumption Cost structure and EBITDA margin remained stable from 2024 to 2025; Item 19 does not provide 2025 profit data to verify that assumption.
The $125,189 Base case is a transparent calculation, not the “most likely” outcome. Regional samples were small: three Midwest stores, four Northeast stores, eleven South stores, and eight West stores supplied complete 2024 P&Ls. Rent, labor, and customer demand can move results substantially within the same region.
How does owner involvement change Pump It Up earnings?
Pump It Up is manager-run, but it is not structured as an absentee investment. The 2026 FDD requires the owner, Operating Principal, or Multi-Unit Manager to remain active in oversight through regular visits and communications. The official Pump It Up franchise FAQ similarly describes the business as manager-run rather than absentee. An owner who personally performs general-manager work may create additional owner-operator benefit, but that labor value is compensation for work, not passive business profit.
Illustrative add-on to the $125,189 Base operating proxy; excluded from the headline range.
Interpretation: the teal extension is labor value, not additional passive profit. The owner receives it only by replacing paid management work and accepting the corresponding operating responsibilities.
Benchmark: U.S. Bureau of Labor Statistics, May 2023, General and Operations Managers in NAICS 713100 Amusement Parks and Arcades, annual mean wage $87,980. The 50% case adds $43,990; the full case adds $87,980. Review the BLS industry-specific wage table. The benchmark excludes self-employed workers and is not Pump It Up-specific.
Why is owner-operator benefit excluded from the main range?
The FDD does not disclose enough detail to determine whether adding manager labor would double-count compensation. Item 19 reports a Labor percentage and refers in a footnote to EBITDA and Owner Compensation, but it does not separately show owner wages, manager wages, payroll burden, or the accounting treatment of owner pay. A buyer should not add the full $87,980 benchmark to Item 19 EBITDA unless the franchisor's written substantiation and the target franchisee's P&L confirm that a paid manager is included and that owner compensation is not already added back.
What can reduce EBITDA before the owner receives cash?
Debt service, maintenance capital, and the treatment of owner pay can make cash available to the owner materially lower than EBITDA. EBITDA excludes interest, taxes, depreciation, and amortization. Financing principal and personal income taxes are also outside the published measure, while recurring franchise fees and local marketing obligations must be funded through unit operations.
| Recurring obligation | 2026 FDD amount | Earnings-model treatment |
|---|---|---|
| Royalty | 6% of Gross Revenues | Material operating charge; verify whether included in Item 19's “Other” expense category. |
| Brand Fund Contribution | Currently 2%; up to 3% | Current scenario assumes 2%, but the franchisor may increase the rate. |
| Local Store Marketing | Greater of 2% or $12,000 | At $658,892 revenue, 2% equals $13,178 and therefore exceeds the dollar floor. |
| Regional co-op | Potential | Combined Brand Fund, Local Store Marketing, and co-op contributions may not exceed 6% of Gross Revenues. |
| Technology and support | Variable or reserved | Item 6 lists possible upgrade, support, hosting, and POpS fees; current charges and timing require verification. |
The scenario does not subtract Item 6 fees again from the Item 19 EBITDA margin. The official P&L table already reports an all-in operating result but does not define the contents of “Other.” Subtracting the Royalty, Brand Fund, or Local Store Marketing a second time could understate earnings. Written substantiation should identify where each fee appears.
Which variables move owner earnings the most?
Sales volume, rent, and labor are the dominant disclosed drivers. In the 2024 systemwide table, average Rent/Building was 20% of Total Revenue, Labor was 23%, and COGS was 14%. Regional average operating margins ranged from 17% in the South to 22% in both the Midwest and Northeast, while the West averaged 19%. The small regional samples mean those percentages describe the reporting cohort, not a guaranteed geographic effect.
- Business profit Net Operating Income (EBITDA) is the FDD's operating measure. It is before interest, taxes, depreciation, and amortization.
- Owner labor compensation The economic value of work performed by the owner. It is not passive profit and should be separated from residual business earnings.
- Debt service Interest reduces cash and is excluded from EBITDA; principal repayment also reduces cash available but is not an operating expense.
- Personal taxes Not estimated here because entity structure, jurisdiction, deductions, and owner circumstances determine the result.
- Capital expenditure Replacement inflatables, equipment, leasehold work, and remodel spending can reduce cash even when EBITDA is positive.
What should a buyer verify before relying on this earnings range?
A buyer should reconcile Item 19 to written substantiation and to current franchisee P&Ls before treating any EBITDA figure as owner income. The Federal Trade Commission advises prospective franchisees to scrutinize the source, limitations, assumptions, and typicality of an Item 19 claim and to request written substantiation. See the FTC's Consumer's Guide to Buying a Franchise and its guidance on evaluating financial performance representations.
- Ask for the 2024 Item 19 written substantiation. Confirm the 26 reporting units, each unit's age, ownership structure, accounting basis, and reason for any missing P&L.
- Define Owner Compensation in writing. Determine whether owner salary, draws, distributions, payroll tax, and benefits are included in Labor, Other, or added back to EBITDA.
- Reconcile recurring fees. Locate the 6% Royalty, 2% Brand Fund, Local Store Marketing, technology costs, and any co-op expense on actual P&Ls.
- Compare manager-run and owner-operated stores. Ask how many reporting units employed a full-time general manager and how the owner divided oversight, sales, staffing, and event operations.
- Test local occupancy and wage assumptions. The FDD's regional averages cannot substitute for a signed lease, local wage schedule, insurance quotes, utilities, and staffing plan.
- Interview current and former franchisees from Item 20. Request 2024 and 2025 monthly sales, payroll, rent, repairs, capital spending, debt payments, and cash distributions.
What is the most defensible annual earnings view?
The strongest defensible current range is approximately $93,000-$181,000 in annual pre-tax operating earnings, with a base case near $125,000. It is a scenario-based estimate derived from 2025 same-brand Gross Revenue and 2024 same-brand EBITDA margins. The strongest official earnings evidence remains the 2024 median operating income of $144,110 and average of $176,617, both defined as EBITDA.
The most important earnings driver is the combination of sales volume with occupancy and labor control. The largest unresolved uncertainty is how the 26 reporting franchisees accounted for Owner Compensation, manager wages, recurring franchise fees, and incomplete P&Ls. Before using the range in a financing or household-income decision, a buyer should obtain Item 19 substantiation, reconcile each fee and owner-pay line, and test the model through current and former franchisee interviews. Debt principal, maintenance capital, and personal taxes must then be evaluated separately.