factual

Does Basecamp Fitness charge a fee for considering an item not previously approved?

Basecamp_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

, we expect the items you purchase that meet our specifications will represent between 70% and 90% of your total expenses.

If you want to purchase items for your Basecamp Studio that we have not previously approved, or items that differ from our specifications, you must notify us in writing. If we request, you must submit samples and other information we require for testing or to otherwise determine whether the product, material or supply meets our specifications and quality standards. We do not impose any fee for our consideration of an item not previously approved.

We may require you to purchase certain furniture, equipment, inventory, supplies, services and other products used or offered at your studio from vendors we approve, in which case we will provide you with a list of approved suppliers. These will include mandatory vendors (persons from whom you must purchase certain items or services), designated vendors (for items or services that must be purchased from vendors we approve), and preferred vendors (for vendors we have approved, but in categories where we do not require you obtain our approval of the vendor).

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 28–32)

What This Means (2025 FDD)

According to Basecamp Fitness's 2025 Franchise Disclosure Document, a franchisee is not charged a fee for the consideration of an item that has not been previously approved. However, if a franchisee wants to purchase items from a new supplier that has not been designated or approved by Basecamp Fitness, the supplier will be required to pay a nonrefundable fee of $300 before Basecamp Fitness will consider approving their application. This fee is intended to cover the cost of reviewing the supplier.

This means that while Basecamp Fitness franchisees are not directly charged for the consideration of new items, there is a cost involved for suppliers seeking approval. This could indirectly affect franchisees, as suppliers might factor this fee into their pricing, or some suppliers may choose not to seek approval at all, limiting the franchisee's options.

It is typical in franchising for franchisors to maintain control over the supply chain to ensure quality and consistency across all locations. Franchisees should be aware of these restrictions and the process for seeking approval of new items or suppliers, as it can impact their ability to source the best products and services for their Basecamp Fitness studio. Franchisees should also be aware that Basecamp Fitness may receive rebates from approved vendors.

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.