What is included in the definition of 'Gross Revenue' for Basecamp Fitness studios, as used in Item 19?

According to Basecamp Fitness's 2025 Franchise Disclosure Document, Item 19 defines 'Gross Revenue' for the purpose of financial performance representations. Gross Revenue includes all income generated by Basecamp Fitness studios from sources like membership package sales and gift cards. However, it specifically excludes bona fide refunds, credits given to members for returned merchandise, and amounts collected from members and remitted to governmental taxing authorities for sales taxes. Chargebacks are not deducted from Gross Revenue. This definition is consistent with the definition provided in the Basecamp Fitness Franchise Agreement.

This definition is important for prospective franchisees because it clarifies what income is used to calculate the average gross revenues presented in Item 19. Understanding what constitutes Gross Revenue allows potential franchisees to better assess the financial performance of existing Basecamp Fitness locations and to make informed decisions about their own potential earnings. By excluding refunds and sales taxes, the Gross Revenue figures provide a clearer picture of the actual revenue generated by the studio's core operations.

It is crucial to note that the Gross Revenue figures presented in Item 19 do not reflect the costs of sales, operating expenses, or other costs that a franchisee will incur. These expenses must be deducted from Gross Revenue to determine net income or profit. Basecamp Fitness advises prospective franchisees to conduct an independent investigation of these costs and expenses, including consulting with current or former franchisees. While the FDD provides Gross Revenue figures, it is up to the potential franchisee to determine if the business is financially viable after accounting for all expenses.