What does Basecamp Fitness consider to be cash and cash equivalents for investment purposes?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the company considers "all highly liquid investments available for current use with an initial maturity of three months or less to be cash and cash equivalents." This definition is important for prospective franchisees as it relates to the company's accounting practices and financial reporting. Understanding how Basecamp Fitness defines these terms can provide insight into their financial statements.

This definition aligns with standard accounting practices, where cash equivalents are short-term, highly liquid investments that can be easily converted to cash. The inclusion of investments with a maturity of three months or less reflects the company's focus on readily available funds.

For a potential Basecamp Fitness franchisee, this definition is most relevant when reviewing the company's financial statements, particularly the balance sheet and cash flow statement. Knowing what qualifies as cash and cash equivalents helps in assessing the company's liquidity and short-term financial health. It's also relevant when understanding any minimum liquidity requirements the franchisor may impose on franchisees.