Can Basecamp Fitness adjust the rate for additional assistance, and if so, where would those changes be documented?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, each franchisee must contribute amounts to the Basecamp Fitness General Advertising and Marketing Fund (the "General Advertising and Marketing Fund" or the "Fund") currently equal to 2% of monthly Gross Revenue. You must contribute to this Fund each month, based on the amount of Gross Revenue you generated in the previous reporting period. We require all franchisees to contribute to this Fund, and our company-owned studios contribute to the Fund at the same percentage rate as franchisees. We may periodically increase the General Advertising and Marketing Fund Contribution, but the General Advertising and Marketing Fund Contribution will not exceed 3% of monthly Gross Revenue.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 35–45)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the company can adjust the General Advertising and Marketing Fund contribution. Currently, franchisees must contribute 2% of their monthly Gross Revenue to the General Advertising and Marketing Fund. Basecamp Fitness may periodically increase this contribution, but it will not exceed 3% of monthly Gross Revenue.
This means that Basecamp Fitness has the discretion to increase the amount franchisees must contribute to the advertising fund, up to a maximum of 3% of monthly gross revenue. Any such changes would likely be communicated to franchisees through updates to the Operations Manual or other official communications from the company. Franchisees should pay close attention to these updates to stay informed of any changes to their financial obligations.
It is important for prospective franchisees to understand that this advertising fund contribution is mandatory and can be increased by Basecamp Fitness within the stated limits. This could impact a franchisee's profitability, especially if gross revenues are lower than anticipated. Therefore, it's crucial to factor in this potential increase when evaluating the financial feasibility of a Basecamp Fitness franchise.