What was the net income (loss) for Basecamp Fitness in 2024?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------------------------------------------------------------|--------------------------------------------------| | Contributions | 786 | | Net loss | (786) | | Balance at December 31, 2022 | 5,000,021 | | Contributions | 430 | | Net loss | (451) | | Balance at December 31, 2023 | 5,000,000 | | Contributions | $ 9,750 | | Distributions | (196,144) | | Net income | 186,394 | | Balance at December 31, 2024 | 5,000,000 |
SEB Franchising Guarantor LLC Statements of Cash Flows Years Ended December 31, 2024, 2023 and 2022
| (in thousands of US dollars) | 2024 | 2023 2022 | |
|---|---|---|---|
| Revenues | |||
| Franchise royalties | $ 145,245 $ 61,387 | $ 58,105 | |
| Franchise fees | 20,063 | 14,390 11,096 | |
| Sales | 78,248 | 41,857 42,586 | |
| Advertising fund revenue | 16,379 | 17,607 17,531 | |
| Vendor rebates | 55,950 | 47,825 42,115 | |
| Other revenues | 1,124 | 1,016 700 | |
| Total revenues | 317,009 | 184,082 172,133 | |
| Cost of goods sold | 43,354 | 18,835 18,554 | |
| Gross profit | 273,655 | 165,247 153,579 | |
| General and administrative expenses | 89,493 | 64,416 48,492 | |
| Advertising fund expense | 16,638 | 18,948 16,682 | |
| Total general, administrative, and advertising fund expense | 106,131 | 83,364 65,174 | |
| Income from operations | 167,524 | 81,883 88,405 | |
| Other (expense) income | |||
| Interest expense | (53,325) | (26,1 |
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the net income for 2024 was $113,091 (in thousands of US dollars). This figure represents the profit remaining after deducting all expenses, including the cost of goods sold, general and administrative expenses, advertising fund expenses, interest expenses, and other expenses, from the total revenues. This indicates the overall profitability of Basecamp Fitness for the specified year.
For a prospective franchisee, understanding the franchisor's financial performance is crucial. A positive net income, such as the one reported by Basecamp Fitness, can be seen as a sign of financial stability and efficient management. It suggests that the franchise system is generating more revenue than it spends, which can be reassuring for individuals considering investing in a Basecamp Fitness franchise.
However, it's important to note that this net income figure is just one aspect of the overall financial health of Basecamp Fitness. A potential franchisee should also consider other factors, such as the trend in net income over several years (2022 and 2023 are also provided for comparison), the franchisor's debt levels, and any significant changes in revenue or expenses. Additionally, it is important to understand how Basecamp Fitness Franchisor LLC, The Bar Method Franchisor LLC, Waxing the City Worldwide, LLC, Basecamp Fitness, LLC, and The Bar Method Franchising, LLC, affiliates of the Company, operate corporate-owned studios that are subject to the same fee structures as other franchisees.
Furthermore, prospective franchisees should conduct their own due diligence and consult with a financial advisor to fully assess the financial viability of investing in a Basecamp Fitness franchise. While the franchisor's net income provides a snapshot of its financial performance, it does not guarantee the success of an individual franchise location. Franchisees should carefully review the entire Item 23 and other relevant sections of the FDD to gain a comprehensive understanding of the financial aspects of the franchise opportunity.