factual
When is the CEC Credit Deficiency fee due for Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
require you to pay the $40,000 to us and we will execute the Grand Opening Program.
ITEM 6 OTHER FEES
| Type of Fee | Amount (Note 1) | Due Date | Remarks |
|---|---|---|---|
| Insufficient Funds Fee | $100 per check that you submit to us that is returned for insufficient funds, and $100 each time that we are unable to collect via EFT due to insufficient funds. | As incurred | |
| 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. |
| Compliance Drawing Fee | $250 per additional Drawing | As incurred | If you would like additional Compliance Drawings you must pay this fee to us for each additional Drawing. |
| Cleaning Fee | Costs we incur and are charged by third parties | As incurred | Only payable if you fail to maintain your Studio in a condition that meets our standards and we designate one of our personnel to assist you and/or have third party cleaners clean your Studio to bring it up to standards. |
| Liquidated Damages | $10,000 multiplied by number of undeveloped Basecamp studios | Immediately after notice from us | Only payable if your ADA is terminated and you have not developed all Basecamp studios you agreed to develop under the ADA. |
| Music Licensing Fee | Currently, $1,100 per year, per Basecamp Studio. | As incurred | This fee may change annuallyupon notice to you commensurate with increases from our music vendor. |
| Bookkeeping Software Fee | Up to $500 per month, per Basecamp Studio | As incurred | We currently do not require franchisees to use a designated bookkeeping vendor, but we may do so in the future and if so, you will be required to pay us or the vendor for the service. |
| Charitable Contribution | $100 per month if you choose to contribute | Monthly | This is a voluntary contribution you will make once you open your Basecamp Studio, but only if you decide to participate in our Charitable Contribution Program. |
| Type of Fee | Amount (Note 1) | Due Date | Remarks |
| Marketing | $12,100 for first year | When | You must purchase marketing materials for |
| Materials | and thereafter may vary based on your purchases | incurred. | promotions we require. This amount is for the first year of operations. After the first year, the amount will vary based upon your needs. We do not currently, but we may implement a program that automatically ships marketing materials to your studio for required promotions at your cost. |
| Conference Fee | Currently, $439 for | When you | If we hold a Conference you must pay this |
| early registration, | register for the | fee for one Basecamp Studio, regardless of | |
| increasing to $659 at the Conference. We may increase this fee not to exceed $1,500 per registration. | Conference | how many studios you open, even if you do not register for our Conference. Payment of this fee covers registration for a Principal Owner of your Basecamp Studio to attend our Conference. (Note 6) | |
| No Show Fees | Currently, $500-$1,000 | Immediately | If we are scheduled for an on-site visit or if |
| depending upon trainer, | after notice | you register for a training program, and | |
| or our actual costs of rescheduling whichever is greater. We may increase this fee not to exceed $1,500, or the actual costs of rescheduling travel, whichever is greater | from us. | you cancel, fail to attend, fail to have the appropriate parties attend, or fail to stay for the entire program, and you did not provide us at least 2 weeks' notice that you would not be attending, then you must pay this fee. | |
| Renewal Fee | $5,000 | At least 15 days before the term of your Franchise Agreement expires. | You only pay this fee if you want to renew your franchise. |
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 the franchisor. This fee is incurred if a franchisee fails to meet the Continuing Engagement Credit minimum in any given year.
The amount of the CEC Credit Deficiency fee is $1.00 per credit deficiency, and this is then multiplied by the number of Basecamp Fitness studios the franchisee owns. The fees collected by Basecamp Fitness are deposited into the General Advertising and Marketing Fund.
Franchisees should ensure they understand the requirements for Continuing Engagement Credits to avoid incurring this fee. It is important to proactively track and meet these requirements, as failure to do so will result in an immediate financial penalty after notification from Basecamp Fitness.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.