From what date are the results of the transfer included in the company's results of operations, potentially impacting Basecamp Fitness's financial reporting?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
In accordance with ASC 805, Business Combinations, the Company has elected not to apply pushdown accounting and has prepared the financial statements on a historical basis. The acquisition of OTFF and OTFPS to Anytime Fitness has been accounted for as a business combination between entities under common control and thus, there was no step up to fair value. The results for this transfer are included in the Company's results of operations from April 2, 2024, the date of common control.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the results of the transfer involving OTFF and OTFPS to Anytime Fitness are included in the company's results of operations starting from April 2, 2024. This date is identified as the 'date of common control'.
This inclusion is based on the accounting treatment of the acquisition as a business combination between entities under common control. The document specifies that there was no 'step up to fair value' in accordance with ASC 805, Business Combinations, because the company elected not to apply pushdown accounting and prepared the financial statements on a historical basis.
For a prospective Basecamp Fitness franchisee, this means that the financial statements they review will reflect the combined operations of these entities from April 2, 2024, onward. This is important for understanding the overall financial health and performance of Anytime Fitness, LLC, which indirectly impacts Basecamp Fitness as a related brand. The franchisee should be aware that historical financial data prior to this date may not be directly comparable due to the change in the scope of the consolidated entity.