What is the condition under which Healthy Contributions may receive compensation from a Program Provider for its services to Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Client acknowledges and agrees that under some Fitness Incentive Programs HC may receive compensation from a Program Provider (as solely determined by HC and the Program Provider) for providing its services as a payment processor and administrator for a Fitness Incentive Program and that the compensation is fully earned by HC and that Client has no claim to any part of HC's compensation.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Healthy Contributions (HC) may receive compensation from a Program Provider for its services as a payment processor and administrator for a Fitness Incentive Program. The compensation amount is solely determined by HC and the Program Provider.
This arrangement means that HC's income isn't solely dependent on fees paid by the Basecamp Fitness client (franchisee). Instead, HC can also be compensated directly by the Program Provider, which could influence the overall cost structure and potentially reduce the fees charged to the franchisee. However, the agreement explicitly states that the Basecamp Fitness franchisee has no claim to any part of HC's compensation from the Program Provider.
This arrangement is fully earned by HC, and the franchisee has no claim to it. This means that even if the Program Provider is compensating HC, the franchisee cannot demand a portion of that compensation or use it to offset their own fees. The franchisee should be aware that the compensation structure between HC and the Program Provider is independent of their agreement with HC.