To whom is the initial franchise fee for a Basecamp Fitness franchise paid?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| YOUR ESTIMATED INITIAL INVESTMENT | |||||
|---|---|---|---|---|---|
| Single Basecamp Studio Franchise | |||||
| Type of Expenditure | Low Amount | High Amount | Method of | When Due | To Whom |
| (Note 1) | Payment | Payment is to be Made | |||
| Initial Franchise Fee (Note 2) | $42,500 | $42,500 | Lump sum | Upon signing the Franchise Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–28)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the initial franchise fee is paid to the franchisor, referred to as "Us" in the document. The initial franchise fee for a single Basecamp Fitness studio is a lump sum of $42,500, due upon signing the Franchise Agreement.
If a prospective franchisee enters into an Area Development Agreement, committing to open more than one Basecamp Studio, they will pay a Development Fee at the time of signing the Area Development Agreement. This Development Fee is also paid to Basecamp Fitness. The amount of the Development Fee varies depending on the number of studios the franchisee agrees to develop.
The Development Fee will be credited towards the Initial Franchise Fee due under each Franchise Agreement signed for each Basecamp Studio developed under the Area Development Agreement. This means that while an initial Development Fee is paid to Basecamp Fitness, it essentially serves as a pre-payment for the franchise fees of the individual studios to be developed under the agreement.
In addition to the initial franchise fee, franchisees should be aware of other payments made to Basecamp Fitness, such as those for travel and training expenses, the Build-Out Package, office and cleaning supplies, initial retail inventory, grand opening advertising, and miscellaneous expenses. Understanding where these payments are directed is crucial for managing the financial aspects of the franchise.