Is the Basecamp Fitness customer required to pay taxes related to the agreement or equipment?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- TAXES AND FEES: Customer agrees to pay when due all taxes (including but not limited to sales tax, personal property tax, fines and penalties) relating to this Agreement or the Equipment on a monthly basis. If the Equipment is subject to personal property tax, Customer agrees to pay a monthly amount to Owner, beginning in the first year in which the taxes are assessed, calculated as 1/12th of the estimated personal property tax for the year as well as any administrative fees charged by the Owner for processing the tax filings. Such amount will be adjusted each year to reflect changes in the valuation of the Equipment. If the Equipment or use of the Equipment requires licensing or registration with any governmental authority, Customer shall, at Customer's expense, obtain and maintain such license or registration continuously during the term of this Agreement and pay all license and/or registration fees. Customer agrees Owner may make a profit on any administrative surcharge, or processing of any taxes and/or fees. obtain and infantial such incluse of registration continuously during the term of this Agreement and pay an incluse and/of registration recessing of any taxes and/or fees.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the customer is responsible for paying taxes related to the agreement or equipment. Specifically, the customer agrees to pay all taxes, including sales tax and personal property tax, fines, and penalties, when they are due on a monthly basis.
If the equipment is subject to personal property tax, the customer will pay a monthly amount to the owner, starting in the first year the taxes are assessed. This monthly amount is calculated as 1/12th of the estimated personal property tax for the year, along with any administrative fees charged by the owner for processing the tax filings. This amount will be adjusted annually to reflect changes in the equipment's valuation.
Furthermore, if the equipment or its use requires licensing or registration with any governmental authority, the customer is responsible for obtaining and maintaining such licensing or registration continuously during the agreement's term and for paying all associated fees. Basecamp Fitness's owner may profit from any administrative surcharge or processing of taxes and/or fees.