What was the deferred revenue for Basecamp Fitness as of December 31, 2024?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Variable Funding Notes | | 15,000 | - | | Less: Unamortized financing costs | | (15,961) | (5,039) | | Long-term debt, net of financing costs | | 962,827 | 478,749 | | Less: Current maturities | | (7,238) | (3,638) | | Long-term debt, net of current maturities | $ | 955,589 | $ 475,111 | | and financing costs | | | |
The annual principal payment requirements for long-term debt, subject to certain financial conditions set forth in the Indenture, are as follows:
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Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the deferred revenue as of December 31, 2024, was $77,151. This is compared to $44,338 as of December 31, 2023.
Deferred revenue represents payments Basecamp Fitness has received for goods or services that have not yet been fully earned. In the case of a franchise, this often includes initial franchise fees, which are recognized over the term of the franchise agreement. The FDD states that the increase in deferred revenue resulted from a contribution of $27,689 of deferred revenue into the Purpose Brands Securitization Entities on April 2, 2024, and the net difference between new sales and the standard or accelerated recognition of revenue.
During 2024, Basecamp Fitness recognized $20,258 of revenue that was either included in deferred revenue at December 31, 2024, or as of the April 2, 2024 contribution date. The company expected to recognize approximately $17,401 of deferred revenue in 2025, with the remainder to be recognized in subsequent years. This indicates that Basecamp Fitness is recognizing revenue over time as it fulfills its obligations to franchisees.