Approximately how much deferred revenue does Basecamp Fitness expect to recognize in 2025?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Variable Funding Notes | | 15,000 | - | | Less: Unamortized financing costs | | (15,961) | (5,039) | | Long-term debt, net of financing costs | | 962,827 | 478,749 | | Less: Current maturities | | (7,238) | (3,638) | | Long-term debt, net of current maturities | $ | 955,589 | $ 475,111 | | and financing costs | | | |
The annual principal payment requirements for long-term debt, subject to certain financial conditions set forth in the Indenture, are as follows:
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Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the company anticipates recognizing approximately $17,401 of deferred revenue during 2025. The remaining balance of deferred revenue will be recognized in subsequent years.
Deferred revenue represents payments Basecamp Fitness has received for services or products that have not yet been fully delivered or earned. This can include initial franchise fees, ADA fees, area representative fees, master franchise fees, renewal and transfer fees, corporate-owned fitness center and online membership fees, equipment and installations fees, and pre-paid personal training sessions. These revenues are initially recorded as liabilities and then recognized as income over the period the service is provided or the product is delivered.
For a prospective Basecamp Fitness franchisee, understanding deferred revenue is important because it reflects the financial health and future revenue streams of the franchisor. A significant deferred revenue balance suggests that Basecamp Fitness has a solid pipeline of future earnings from existing contracts and agreements. This can be a positive indicator of the brand's stability and growth potential.