What is the administrative fee charged by Basecamp Fitness if they obtain insurance on behalf of the franchisee?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not obtain or maintain insurance coverage that meets our requirements and we obtain it for you, you must pay us our then current insurance handling fee plus the cost of the premiums we pay for the insurance.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, if a franchisee fails to secure and maintain the required insurance coverage, Basecamp Fitness has the right to obtain the necessary insurance on the franchisee's behalf. In such instances, the franchisee is responsible for covering the cost of the insurance premiums and also paying Basecamp Fitness's 'then current insurance handling fee'.
It is important to note that the FDD does not specify a fixed amount for this insurance handling fee. The fee is subject to change, as it is described as the 'then current' fee. This means the fee could vary over time.
Prospective franchisees should inquire about the current insurance handling fee and how it is determined. Understanding this fee is crucial for budgeting and financial planning, as it can impact the overall cost of operating a Basecamp Fitness franchise if the franchisee is unable to obtain insurance independently.