When is the monthly Royalty Fee due for a Basecamp Fitness franchise?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Monthly Royalty Fee. On or about the 10th day of the month for the prior month, you will pay to us a non-refundable monthly royalty payment (the "Royalty Fee") equal to eight percent (8%) of the Gross Revenues generated in the preceding month by your Basecamp Studio.
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- Your obligation to pay us the Royalty Fee under the terms of this Agreement will begin on the date you open your Basecamp Studio. Your obligation to pay the Royalty Fee will remain in full force and effect throughout the term of this Agreement.
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- "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, the monthly Royalty Fee is due on or about the 10th day of each month. This payment covers the prior month's Gross Revenues. The Royalty Fee is calculated as eight percent (8%) of the Gross Revenues generated by the Basecamp Studio in the preceding month.
This means that a Basecamp Fitness franchisee must remit 8% of the previous month's total revenue to Basecamp Fitness around the 10th of each month. This obligation begins when the studio opens and remains in effect throughout the term of the Franchise Agreement.
Gross Revenues include all revenues from business activities at the Basecamp Studio, whether in cash, credit, or fair market value of provided products and services. Exclusions from Gross Revenues are limited to bona fide refunds, credits to customers for returned merchandise, and sales taxes remitted to governmental authorities. Chargebacks, however, are not deducted from Gross Revenues when calculating the Royalty Fee.