What financial documents must a Basecamp Fitness franchisee provide upon request?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
u or in any action in which you are named as a party, provided that we will have the right to participate in and, to the extent we deem necessary, to control any litigation or proceeding which might result in liability of or expense to you subject to such indemnification.
12. FINANCIAL STATEMENTS AND AUDIT RIGHTS
- A. Financial Information, Reports, Inspections and Audits. Following the opening of your Basecamp Studio, by the 10th of each month, you will provide us with monthly sales information from the Basecamp Studio. In addition, within thirty (30) days following your fiscal year end, you will provide us with copies of your financial statements (reviewed by your accountant), including an income statement for the fiscal year just ended and a balance sheet, cash flow statement, and any other document accompanying your financial statements, as of the end of such fiscal year, which financial statements will have been prepared in accordance with generally accepted accounting principles applied on a consistent basis. We will also have the right to request other financial statements, reports and information from you during the year, and you will deliver those financial statements, reports and information to us when, and in the form and manner, we require. Also, on or before April 15 of each year, you must provide us with a copy of your federal tax return and the federal tax retur
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 50–51)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees are required to provide several financial documents to the company. On a monthly basis, by the 10th of each month, franchisees must submit monthly sales information from their Basecamp Studio. Additionally, within 30 days following the end of their fiscal year, franchisees must provide copies of their financial statements, which should be reviewed by their accountant. These statements must include an income statement for the fiscal year, a balance sheet, a cash flow statement, and any other documents accompanying the financial statements, all prepared in accordance with generally accepted accounting principles.
Basecamp Fitness also retains the right to request other financial statements, reports, and information from franchisees throughout the year, which must be delivered in the required form and manner. Furthermore, franchisees are obligated to provide a copy of their federal tax return and the federal tax returns of their owners for the previous tax year by April 15th of each year.
Failure to provide any of the requested information in a timely manner will result in a late reporting fee of $100 per violation. This fee does not excuse the franchisee from their obligation to provide the information, and failure to report the information on time constitutes a material default under the Franchise Agreement. This comprehensive reporting requirement ensures that Basecamp Fitness has access to the financial performance and tax information of its franchisees, allowing them to monitor compliance and overall business health.