What was the amount of financing costs related to the issuance of long-term debt for Basecamp Fitness in 2024?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the financing costs related to the issuance of long-term debt in 2024 were $14,892 (in thousands of US dollars). This figure reflects the costs associated with securing long-term debt financing during that year. These costs are typically related to fees for banks and legal services.

For a prospective Basecamp Fitness franchisee, understanding these financing costs is crucial because it provides insight into the financial structure of the company. It demonstrates the expenses Basecamp Fitness incurred to obtain capital, which can influence the company's overall financial health and stability. Knowing the magnitude of these costs can help a franchisee assess the franchisor's financial management and potential risks associated with its debt obligations.

Furthermore, the FDD states that these debt issuance costs of $14,892 were recorded as a reduction of long-term debt in connection with the issuance of the Series 2024-1 Notes. These costs are amortized to interest expense through the anticipated repayment dates. This amortization means that the cost is spread out over the life of the loan, impacting the company's profitability each year.

Therefore, a franchisee should consider these financing costs as part of their due diligence, evaluating how Basecamp Fitness manages its debt and how it might affect the franchisor's ability to support its franchisees. It is also important to note that these costs are specific to the franchisor's operations and are separate from any financing a franchisee might need to secure to open their own Basecamp Fitness studio.