Are chargebacks deducted from Gross Revenue when calculating financial performance for Basecamp Fitness?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, chargebacks are not deducted from Gross Revenue when calculating financial performance. The FDD specifies that Gross Revenue includes all amounts generated by Basecamp Studios, such as membership package sales and gift cards. However, bona fide refunds and sales taxes remitted to governmental taxing authorities are excluded from Gross Revenue.

This means that for the purposes of the Item 19 financial performance representations, the revenue figures presented for Basecamp Fitness locations do not reflect any deductions for chargebacks. A prospective franchisee should be aware that while chargebacks are not deducted from gross revenue for the purposes of Item 19, they will impact the actual cash a franchisee receives and therefore their net profit.

This approach to calculating Gross Revenue is consistent with the definition in the Basecamp Fitness Franchise Agreement. A potential franchisee should consider the impact of chargebacks on their overall profitability and factor this into their financial projections. Understanding how chargebacks are handled and their potential impact is crucial for assessing the true financial performance of a Basecamp Fitness franchise.