How much did Basecamp Fitness pay in distributions to its member in 2023?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands of US dollars) | 2024 2023 2022 | |
|---|---|---|
| Cash flows from financing activities | ||
| Proceeds from issuance of long-term debt | 524,000 - - | |
| Principal payments on long-term debt | (29,000) - (1,213) | |
| Financing costs related to issuance of long-term debt | (14,892) - - | |
| Cash contributions | - - 1 | |
| Distributions paid to member | (599,060) (60,125) (53,469) | |
| Net cash flows used in financing activities | (118,952) (60,125) (54,681) |
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the company paid $60,125 in distributions to its member in 2023. This figure is presented in thousands of US dollars, so the actual amount was $60,125,000.
This distribution represents a significant outflow of cash from the company. Prospective franchisees should consider this when evaluating the financial health and stability of Basecamp Fitness. A large distribution could indicate that the company is prioritizing returns to its member over reinvesting in the business, which could impact future growth and support for franchisees.
It's important to note that distributions are not necessarily negative. They can be a sign of profitability and efficient management. However, potential franchisees should investigate further to understand the context of these distributions and their potential impact on the franchise system. Understanding the reasons behind these distributions and the company's plans for future investments is crucial for making an informed decision about investing in a Basecamp Fitness franchise.