Who may deposit unrestricted funds into the franchise capital account for Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company established franchise capital accounts in which the Company maintains funds necessary to either provide a guarantee for franchising subsidiaries or to support any franchisor liquidity or net worth requirement, including in respect of eligibility for any exemptions applicable to franchisors or licensors of franchises under the applicable franchise laws. The Company may accept receipt of unrestricted funds credited to such franchise capital account by Anytime Fitness, LLC, deposit to the franchise capital account the proceeds of capital contributions made to such account, and disburse funds from the franchise capital account to fund any loan or advance made in accordance with the base indenture.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the company maintains franchise capital accounts to provide guarantees for franchising subsidiaries and to support any franchisor liquidity or net worth requirements. Anytime Fitness, LLC is authorized to deposit unrestricted funds into Basecamp Fitness's franchise capital account. Additionally, the company can deposit proceeds of capital contributions into this account.
These franchise capital accounts are used by Basecamp Fitness to ensure they have sufficient funds to meet their financial obligations as a franchisor. This arrangement helps Basecamp Fitness maintain eligibility for any exemptions applicable to franchisors under franchise laws.
For a prospective franchisee, this indicates that Anytime Fitness, LLC plays a role in providing financial support to Basecamp Fitness. This support could be crucial for the stability and growth of the Basecamp Fitness franchise system. Franchisees should be aware of this relationship and how it might affect the overall financial health and operational decisions of the franchise.