What happens to the CEC Credit Deficiency fee collected by Basecamp Fitness?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
olation | As incurred | Payable only if a required report or financial statement is not delivered when due. | | Type of Fee | Amount (Note 1) | Due Date | Remarks | |---------------|---------------------------|--------------|----------------------------------------------| | Insufficient | $100 per check that you | As incurred | | | Funds Fee | submit to us that is returned for insufficient funds, and $100 each time that we are unable to collect via EFT due to insufficient funds. | | | | CEC Credit | $1.00 per credit | Immediately | You only pay this fee if you fail to meet | | Deficiency | deficiency multiplied by | after notice | your Continuing Engagement Credit | | | the number of Basecamp Studios you own | from us | minimum in any given ye
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the CEC Credit Deficiency fee is deposited into the General Advertising and Marketing Fund. This fee is incurred if a franchisee fails to meet the Continuing Engagement Credit minimum in any given year. The amount of the fee is $1.00 per credit deficiency, multiplied by the number of Basecamp Fitness studios the franchisee owns.
This means that if a franchisee does not meet the required engagement credits, they will be charged a fee that directly contributes to the overall marketing efforts of the Basecamp Fitness brand. The more studios a franchisee owns, the higher the fee will be for each credit they are deficient.
Franchisees should be aware of the Continuing Engagement Credit requirements and ensure they meet the minimum to avoid this fee. The funds collected are specifically earmarked for advertising and marketing, which benefits all franchisees by promoting the Basecamp Fitness brand and potentially attracting more customers.