On what is the Basecamp Fitness General Advertising and Marketing Fund contribution based?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, each franchisee must contribute amounts to the Basecamp Fitness General Advertising and Marketing Fund (the "General Advertising and Marketing Fund" or the "Fund") currently equal to 2% of monthly Gross Revenue. You must contribute to this Fund each month, based on the amount of Gross Revenue you generated in the previous reporting period. We require all franchisees to contribute to this Fund, and our company-owned studios contribute to the Fund at the same percentage rate as franchisees. We may periodically increase the General Advertising and Marketing Fund Contribution, but the General Advertising and Marketing Fund Contribution will not exceed 3% of monthly Gross Revenue.
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 contribute to the General Advertising and Marketing Fund. This contribution is currently set at 2% of monthly Gross Revenue. Franchisees must make this contribution each month, calculated from the Gross Revenue generated in the previous reporting period.
Company-owned Basecamp Fitness studios also contribute to the fund at the same percentage rate as franchisees, ensuring that both parties are equally invested in the brand's marketing efforts. The document specifies that Basecamp Fitness may periodically increase the contribution rate to the General Advertising and Marketing Fund, but it will not exceed 3% of monthly Gross Revenue.
This means that a franchisee's marketing fund obligation is directly tied to their sales performance. Higher revenues will result in larger contributions, while lower revenues will decrease the amount owed. This system aligns the marketing budget with the overall financial health of each Basecamp Fitness location. Prospective franchisees should be aware of this ongoing expense and factor it into their financial projections.