How is the CEC Credit Deficiency fee calculated for Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount (Note 1) | Due Date | Remarks |
|---|---|---|---|
| CEC Credit Deficiency | $1.00 per credit deficiency multiplied by the number of Basecamp Studios you own | Immediately after notice from us | You only pay this fee if you fail to meet your Continuing Engagement Credit minimum in any given year. We will deposit the fee in the General Advertising and Marketing Fund. See Item 11 for more information. |
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the CEC Credit Deficiency fee is calculated by multiplying $1.00 per credit deficiency by the number of Basecamp Fitness studios the franchisee owns. This fee is levied if a franchisee fails to meet the Continuing Engagement Credit minimum in any given year. The franchisee will be notified before the fee is due. Basecamp Fitness will deposit the collected fees into the General Advertising and Marketing Fund.
This fee structure means that the more studios a franchisee owns, the higher the penalty for each credit deficiency. This incentivizes franchisees to ensure they meet their Continuing Engagement Credit minimums across all their locations. The funds collected are earmarked for the General Advertising and Marketing Fund, which benefits all franchisees by supporting brand-wide marketing efforts.
Franchisees should be aware of the requirements for Continuing Engagement Credits and proactively manage their compliance to avoid incurring this fee. Understanding the specific activities that qualify for these credits and tracking their progress throughout the year is crucial. It would be prudent for a prospective franchisee to inquire about the specific requirements for earning Continuing Engagement Credits and examples of activities that qualify.