Is the monthly Royalty Fee refundable 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.
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 not refundable. Franchisees must pay a monthly royalty fee, referred to as the "Royalty Fee", which is equal to eight percent (8%) of the Gross Revenues generated by their Basecamp Studio in the preceding month.
The Royalty Fee is a standard component of most franchise agreements, compensating the franchisor for the use of their brand, systems, and ongoing support. The fact that the Royalty Fee is non-refundable means that once paid, these fees will not be returned to the franchisee under any circumstances.
This non-refundable policy is a typical practice in franchising. Franchisees should factor this into their financial planning, ensuring they can consistently meet this obligation, which begins when the Basecamp Studio opens and remains in effect throughout the term of the Franchise Agreement.