What is the maximum annual increase allowed for the Basecamp Fitness Technology Fee?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) We may increase the amount and calculation of the Technology Fee 10% annually.
Adjustments are compounded annually and cumulative including increases in any given year of greater than 10% to adjust for prior years when no increase, or an increase of less than the permitted percentage increase, was implemented.
You will pay this monthly Technology Fee to our affiliate, ProVision for the support of certain components in the Technology & Fitness Equipment Package.
You will pay this fee on the first business day of each month after billing begins.
Billing begins when your Studio starts pre-sale which is 60 to 90 days before opening.
You may still need to purchase various technology and equipment that is not included in the Technology & Fitness Equipment Package.
This fee does not include any music licensing fees nor does it include any third party services like fitness equipment maintenance, telephone or internet service.
Source: Item 6 — OTHER FEES (FDD pages 17–24)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the Technology Fee can be increased by a maximum of 10% annually. This fee is paid monthly to ProVision, a Basecamp Fitness affiliate, to support components within the Technology & Fitness Equipment Package. Billing for this fee begins when the studio starts its pre-sale phase, which is typically 60 to 90 days before the studio's opening.
It's important to note that these adjustments are compounded annually and are cumulative. This means that if Basecamp Fitness chooses not to increase the fee by the full 10% in a given year, they can adjust for the difference in subsequent years, even exceeding the 10% in a single year to account for prior under-increases. This compounding effect could lead to significant increases in the Technology Fee over time.
The Technology Fee covers the support of specific components within the Technology & Fitness Equipment Package, but it does not include other technology-related costs. Franchisees should be aware that they may need to purchase additional technology and equipment not included in the package. Furthermore, the fee does not cover music licensing fees or third-party services such as fitness equipment maintenance, telephone, or internet service. Franchisees need to budget separately for these additional expenses.