What franchising-related assets are held by the Purpose Brands Securitization Entities concerning Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
re under common control, the contributions were recorded at book value. The net book value of the assets and liabilities contributed are summarized below as of April 2, 2024:
| Cash and cash equivalents | $ 2,172 |
|---|---|
| Accounts receivable | 6,389 |
| Inventory | 2,591 |
| Prepaid expenses and other assets | 5,956 |
| Deferred costs | 8,245 |
| Intangible assets and software development costs | 8,592 |
| Accounts payable | (3,497) |
| Accrued expenses and other current liabilities | (4,118) |
| Deferred revenue | (27,689) |
| Net liabilities contributed | $ (1,359) |
The Issuer, its direct parent, as well as the Issuer's direct and indirect subsidiaries, except SEB Franchising Guarantor LLC, (collectively, the Purpose Brands Securitization Entities) hold substantially all of the franchising-related assets and have jointly and severally guaranteed the payment of each series of notes and the payment and performance of all other obligations of the Issuer.
Anytime Fitness, LLC manages and services the assets of the Purpose Brands Securitization Entities in return for a management fee under a management agreement (the "Securitization Management Agreement"). The primary responsibilities of Anytime Fitness, LLC as the manager are to administer collections of royalties and other securitized revenues and perform certain franchising, operational, intellectual property and reporting on behalf of the Purpose Brands Securitization Entities with respect to the managed assets.
Series 2021-1 Notes
In connection with the securitization transaction completed on November 24, 2021 (see "Securitization" section), the Issuer issued $485,000 of Series 2021-1 Class A-2 Fixed Rate Senior Secured Notes ("Series 2021- 1 Class A-2 Notes"). In addition
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, the Purpose Brands Securitization Entities hold substantially all of the franchising-related assets. These entities include the Issuer (SEB Funding LLC), its direct parent, and the Issuer's direct and indirect subsidiaries, except SEB Franchising Guarantor LLC. These entities have jointly and severally guaranteed the payment of each series of notes and the payment and performance of all other obligations of the Issuer.
Anytime Fitness, LLC manages and services these assets for a management fee under the Securitization Management Agreement. Anytime Fitness, LLC's responsibilities include administering the collection of royalties and other securitized revenues. They also handle franchising, operational, and intellectual property matters, and reporting on behalf of the Purpose Brands Securitization Entities with respect to the managed assets.
The Series 2021-1 Notes, which include $485,000 of Series 2021-1 Class A-2 Fixed Rate Senior Secured Notes, $20,000 of Series 2021-1 Class A-1 Variable Funding Notes, and $6,100 of Series 2021-1 Class A-1 Senior Secured Liquidity Reserve Notes, are secured by substantially all assets of and guaranteed by the Purpose Brands Securitization Entities. This securitization structure is relevant to prospective Basecamp Fitness franchisees because it outlines how the financial obligations related to the franchise system are managed and secured.