How does Basecamp Fitness determine the cost of its inventory?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
SEB Distribution SPV LLC ("SEB Distribution") procures, holds, and distributes inventory and supplies to Purpose Brands franchise businesses.
(in thousands of US dollars)
Cost of Goods Sold
Cost of goods sold primarily includes the direct costs associated with equipment sales, including freight costs, to new and existing franchisee-owned clubs and studios in the U.S and internationally. Our cost of revenue changes primarily based on equipment sales volume.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the cost of goods sold primarily includes the direct costs associated with equipment sales, including freight costs, to new and existing franchisee-owned clubs and studios in the U.S. and internationally. The cost of revenue changes primarily based on equipment sales volume.
For a prospective Basecamp Fitness franchisee, this means that the cost of inventory will fluctuate depending on how much equipment is being sold. The franchisee will bear the direct costs of equipment and freight.
It is important to note that SEB Distribution SPV LLC procures, holds, and distributes inventory and supplies to Purpose Brands franchise businesses, which includes Basecamp Fitness. This indicates that franchisees will likely purchase their inventory through this designated supplier.