What documentation might Basecamp Fitness require from a franchisee to verify compliance with the Grand Opening Program spending requirements?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
r review by a franchisee participating in the cooperative, upon request of that franchisee. We may change, dissolve or merge any cooperative at any time.
Grand Opening Program
You must spend $40,000 on a Grand Opening Program we have approved for your Basecamp Studio beginning 12 to 16 weeks before your scheduled opening and ending 30 days following the opening of your Basecamp Studio. We may require you to submit your grand opening plans and local marketing plans for our prior approval, submit proof of purchase or other documentation to verify you have met minimum spend requirements, and show proof of performance of your advertising activity. Or, we may require you to implement a Grand Opening marketing plan that we develop in consultation with you and one of our preferred marketing vendors. If you fail to spend this amount on the Grand Opening Program, you must pay us the difference between the amount you spent and the minimum required amount and we can either spend it in your
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 35–45)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees are required to spend $40,000 on a Grand Opening Program that Basecamp Fitness approves. This program should begin 12 to 16 weeks before the studio's scheduled opening and conclude 30 days after the opening. To ensure compliance with this spending requirement, Basecamp Fitness may ask franchisees to submit grand opening and local marketing plans for prior approval.
Furthermore, Basecamp Fitness may require franchisees to provide proof of purchase or other documentation to verify they have met the minimum spending requirements for the Grand Opening Program. They may also need to demonstrate proof of performance of their advertising activity. This documentation serves as evidence that the franchisee has allocated the necessary funds to the Grand Opening Program as mandated by the franchise agreement.
If a franchisee fails to spend the required $40,000 on the Grand Opening Program, they must pay Basecamp Fitness the difference between the amount spent and the minimum required amount. Basecamp Fitness then has the option to spend the remaining funds in the franchisee's market on their behalf or allocate the money to the General Advertising and Marketing Fund. Alternatively, Basecamp Fitness may require the franchisee to pay the full $40,000 to Basecamp Fitness, who will then execute the Grand Opening Program directly.