Who owns the equipment purchased for a Basecamp Fitness franchise?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company sells fitness equipment, studio supplies, retail products, and technology hardware purchased from third party manufacturers to franchisees and consumers.
For fitness equipment and managed technology and security equipment sales, revenue is recognized upon transfer of control of ordered items, generally upon delivery to the customer and assembly or installation of the equipment in the club or studio location. Franchisees are also charged for all freight and installation costs incurred for the delivery and installation of equipment. Freight and installation revenue is recorded within sales and freight and installation costs are recorded within cost of goods sold on the consolidated statements of comprehensive income.
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to the 2025 Basecamp Fitness Franchise Disclosure Document, franchisees purchase fitness equipment from third-party manufacturers. Basecamp Fitness recognizes revenue upon the transfer of control of the ordered items, which generally occurs when the equipment is delivered to the customer and assembled or installed at the studio location.
This implies that once the equipment is delivered and installed, the franchisee owns the equipment. Franchisees are also responsible for all freight and installation costs associated with the delivery and installation of the equipment. These costs are recorded as sales revenue for Basecamp Fitness, while the corresponding expenses are recorded as part of the cost of goods sold.
This arrangement is typical in many franchise systems, where franchisees are responsible for procuring and owning the assets necessary to operate their business. Prospective Basecamp Fitness franchisees should confirm the specifics of equipment ownership and warranty terms in their Franchise Agreement.