When is the CEC Credit Deficiency fee due to 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 due immediately after notice from Basecamp Fitness. This fee is triggered if a franchisee fails to meet the Continuing Engagement Credit minimum in any given year. The amount of the fee is $1.00 per credit deficiency, multiplied by the number of Basecamp Studios the franchisee owns.
This means that if a Basecamp Fitness franchisee does not fulfill their Continuing Engagement Credit requirements, they will be assessed a fee based on the number of credits they are short and the number of studios they operate. For example, if a franchisee is deficient by 10 credits and owns 2 Basecamp Fitness studios, the fee would be $20 (10 credits x 2 studios x $1.00).
The funds collected from the CEC Credit Deficiency fee are deposited into the General Advertising and Marketing Fund, which Basecamp Fitness uses for advertising and marketing activities. Franchisees should ensure they meet their Continuing Engagement Credit minimums to avoid incurring this fee, as it can add up depending on the number of credits missed and studios owned. Staying compliant with these requirements is essential for managing costs and contributing to the brand's overall marketing efforts.