What is the minimum amount a Basecamp Fitness franchisee must spend per month on local advertising?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
n the General Advertising and Marketing Fund. We may also require you to pay the $40,000 to us and we will execute the Grand Opening Program.
Local Advertising Spend Requirement
You must spend a minimum of $2,500 per month on local advertising. If you do not meet this requirement, you must pay us the difference between what you actually spent and the minimum that you were required to spend and we can either spend it in your market on your behalf or place the money in the General Advertising and Marketing Fund. We may require you to implement a local marketing plan that we develop in consultation with you and one of our preferred marketing vendors or we may require you to pay us the $2,500 per month and we will spend it on local advertising in your market. If we implement this requirement you must also pay us a one-time set-up fee of $350.
Indirect costs you incur in managing your local advertising campaigns, such as salaries and benefits of your employees, will not be counted toward your monthly expenditure. Additionally, any costs you incur for advertising conducted at your Basecamp Studio, such as in-store materials and signage will no
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 35–45)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, franchisees are required to spend a minimum of $2,500 per month on local advertising. If a franchisee fails to meet this minimum spending requirement, they must pay Basecamp Fitness the difference between the actual amount spent and the required minimum. Basecamp Fitness then has the option to either use the remaining funds for advertising in the franchisee's market or allocate the money to the General Advertising and Marketing Fund.
Basecamp Fitness may also require franchisees to implement a local marketing plan developed in consultation with the franchisor and one of its preferred marketing vendors. Alternatively, Basecamp Fitness may require the franchisee to pay the $2,500 monthly advertising fee directly to them, and Basecamp Fitness will then manage the local advertising efforts in the franchisee's market. If Basecamp Fitness implements this requirement, the franchisee must also pay a one-time set-up fee of $350.
It is important to note that indirect costs, such as employee salaries and benefits related to managing local advertising campaigns, do not count towards the minimum monthly expenditure. Additionally, costs associated with in-store advertising materials and signage at the Basecamp Fitness studio are also excluded from the minimum spending requirement. The amounts spent on the Grand Opening Program do not count toward the monthly advertising expenditure.
This advertising requirement is typical in the franchise industry, as it ensures consistent brand promotion and local market penetration. However, prospective Basecamp Fitness franchisees should carefully consider this ongoing monthly expense and factor it into their overall budget and financial projections.