What does Basecamp Fitness consider to be cash and cash equivalents?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the company considers cash and cash equivalents to be highly liquid investments available for current use with an initial maturity of three months or less. This is a standard accounting practice, as it reflects assets that can be quickly converted to cash.

Basecamp Fitness maintains its cash in financial institutions, which at times, may exceed federally insured limits. However, the company states that it has not experienced any losses in such accounts and believes it is not exposed to any significant cash credit risk. This indicates that Basecamp Fitness management is aware of and actively manages its cash balances to mitigate potential risks associated with exceeding insured limits.

For a prospective franchisee, understanding how Basecamp Fitness defines and manages its cash and cash equivalents can provide insight into the company's financial management practices. It also highlights the importance of managing cash flow effectively in the franchise business, ensuring that funds are readily available for operational needs and growth opportunities.