What fees does Basecamp Fitness Franchisor collect from its master franchisee?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Basecamp Fitness Franchisor LLC ("Basecamp Fitness Franchisor") franchises the right to open, operate, and manage fitness studios in the United States and internationally. Franchisees pay Basecamp Fitness Franchisor an initial franchise fee to acquire the franchise. During the term of the franchise agreement, franchisees pay royalties in amounts that vary according to the franchise agreement.
Basecamp Fitness Franchisor operates internationally as Sumhiit Fitness. Basecamp Fitness Franchisor has a master franchise agreement with an entity that allows the master franchisee to franchise and operate Sumhiit Fitness studios in an international jurisdiction. Basecamp Fitness Franchisor collects an initial master franchise fee and various recurring and nonrecurring fees from the master franchisee.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, Basecamp Fitness Franchisor LLC has master franchise agreements internationally that allow a master franchisee to franchise and operate Sumhiit Fitness studios. In these agreements, Basecamp Fitness Franchisor collects an initial master franchise fee along with various recurring and nonrecurring fees from the master franchisee.
These fees are standard in franchise agreements, as they compensate Basecamp Fitness for granting the master franchisee the right to sub-franchise the Basecamp Fitness concept in a specific territory. The initial master franchise fee is typically a large, upfront payment, while recurring fees may include royalties based on a percentage of the sub-franchised studios' revenue. Nonrecurring fees could cover items such as training, technology support, or marketing assistance.
Prospective master franchisees should carefully review the master franchise agreement to understand the specific fees they will be required to pay to Basecamp Fitness. They should also inquire about the timing and method of payment for each fee. Understanding the full financial obligations is crucial for assessing the profitability and feasibility of the master franchise venture.
It's important to note that the fees collected from franchisees, including master franchisees, contribute to Basecamp Fitness's revenue. These revenues are used to support the franchise system, including providing training, marketing, and ongoing support to franchisees. This revenue structure is typical in franchising, where the franchisor relies on fees and royalties from franchisees to sustain its operations and grow the brand.