For a Basecamp Fitness Area Development Agreement, what is the dependency between the number of studios agreed to be developed and the Development Fee?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the Development Fee for an Area Development Agreement is directly related to the number of studios a franchisee commits to developing. The FDD specifies that franchisees must commit to opening more than one Basecamp Fitness studio under an Area Development Agreement. The Development Fee is paid in a lump sum upon signing the Area Development Agreement.

The Development Fee varies depending on the number of studios the franchisee agrees to develop. Basecamp Fitness offers Area Development Agreements for 3, 5, or more than 5 studios. The low estimate for the Development Fee is based on an agreement to develop 3 studios, while the high estimate is based on developing 5 studios. The Development Fee ranges from $97,500 to $137,500. The low amount, $97,500, is associated with developing 3 studios, and the high amount, $137,500, is associated with developing 5 studios.

This fee structure incentivizes franchisees to commit to a larger development plan, as the Development Fee increases with the number of studios. However, the FDD does not specify the Development Fee for agreements to develop more than 5 studios. Prospective franchisees should inquire about the specific fee structure for development agreements involving larger numbers of studios to understand the full financial commitment required. The Development Fee is credited to the Initial Franchise Fee due under each Franchise Agreement signed for each Basecamp Studio developed under the Area Development Agreement.