What is included in the definition of 'Gross Revenues' for a Basecamp Fitness studio?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Revenues," shall mean the total amount of revenues generated from all business activities taking place by, through or at the Basecamp Studio, in the form of cash or credit, plus the fair market value of products delivered and services rendered to you, or to your designee, in consideration for products and services provided in, from, or in conjunction with your Basecamp Studio. There will be excluded from "Gross Revenues" bona fide refunds, credits given or allowed to members and other customers for the return of merchandise and amounts collected from members and other customers and remitted by you to any governmental taxing authority in satisfaction of sales taxes, however, chargebacks are not deducted from the calculation of Gross Revenues.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, "Gross Revenues" is defined as the total income generated from all business activities at the Basecamp Studio. This includes revenues received in the form of cash or credit. It also includes the fair market value of any products or services the franchisee provides to others in exchange for goods or services related to the Basecamp Studio.
However, certain items are excluded from the calculation of Gross Revenues. These exclusions include bona fide refunds and credits given to members or customers for returned merchandise. Additionally, amounts collected from members or customers for sales taxes that are then remitted to a governmental taxing authority are also excluded from Gross Revenues. It is important to note that chargebacks are not deducted when calculating Gross Revenues.
For a prospective Basecamp Fitness franchisee, understanding this definition is crucial because the monthly royalty fee, which is eight percent (8%) of Gross Revenues, and the monthly advertising and marketing fund contribution, which is two percent (2%) of Gross Revenues (up to a maximum of three percent (3%)), are directly based on this figure. Therefore, accurately tracking and reporting all revenue streams, while properly accounting for exclusions, is essential for compliance with the franchise agreement and for managing the financial performance of the Basecamp Fitness studio.