What was the depreciation expense for Basecamp Fitness for the year ended December 31, 2022?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, the depreciation expense for the years ended December 31, 2024, 2023, and 2022 amounted to $1,016, $935, and $900, respectively. These figures are expressed in thousands of U.S. dollars. Therefore, the depreciation expense for Basecamp Fitness for the year ended December 31, 2022, was $900,000.

Depreciation expense is a non-cash expense that reflects the reduction in value of an asset over time due to wear and tear, obsolescence, or other factors. It is an important factor in determining a company's profitability and cash flow. For a Basecamp Fitness franchisee, understanding the depreciation expense can help in assessing the overall financial health of the franchise and in making informed decisions about capital investments.

It's important to note that depreciation methods and useful lives of assets can vary, impacting the reported depreciation expense. Basecamp Fitness uses the straight-line method for financial statement purposes, with estimated useful lives for furniture, equipment, and auto and trucks ranging from 5 to 7 years. Leasehold improvements are depreciated over the shorter of the remaining lease term or the estimated useful lives of the improvements. This standardized approach provides consistency in financial reporting and allows for comparison across different periods.

Prospective franchisees should consider depreciation expense when evaluating the financial performance of a Basecamp Fitness franchise. While it does not represent an actual cash outflow, it does reflect the ongoing cost of using assets and should be factored into profitability calculations. Understanding the depreciation policies and the useful lives of assets can help franchisees better manage their finances and plan for future capital expenditures.